What does user-defined currency refer to in Adaptive Planning?

User-defined currency in Adaptive Planning refers to currencies that are not tied to real currencies. This concept allows organizations to create and use fictional or custom currencies for specific internal purposes, such as budgeting, scenario modeling, or reporting, without being constrained by official exchange rates or globally recognized currencies. This flexibility enables businesses to tailor their financial models to better reflect internal needs, simulate various financial scenarios, and conduct analyses that may not directly relate to actual currencies available in the market.

The essence of user-defined currency is its adaptability, allowing organizations to implement their currencies for strategic purposes or internal processes. This contrasts with predefined system currencies or standard reporting currencies, which are based on actual, recognized currencies and are typically used for broader financial reporting needs. Additionally, while currency translation pertains to the conversion of one currency into another based on exchange rates, user-defined currencies specifically involve the creation and application of non-real currencies tailored for individual organizational needs.