Post on 21-Mar-2018
How to Make PeopleSoft 9.2 Multi-Currency Work for You
Presented by:
Stephen Coco
Managing Director
SpearMC Consulting
Session ID#: 100220
@SpearMC
• Silence Audible Devices• Note Fire Exits• Partake of Refreshments• Note Quest Staffers (green shirts)• Complete Feedback Form• Ask Questions
Welcome and Please:
2
How to join PeopleSoft Lifecycle Asset Management SIG.
Login to http://www.questdirect.org/
Go to http://www.questdirect.org/groups/PeopleSoft%20Asset%20Lifecycle%20Management
Click “Join Group”
3
Introduction
Multi-Currency Configuration
Multi-Currency Journals
Re-Measurement
General Ledger Adjustments
Reporting
Multiple GAAPs
Agenda
4
PeopleSoft Financials and Supply Chain Management
PeopleSoft Human Capital Management and Payroll
ERP Architecture and Application Development
Project and Program Management (PMO)
Change Management
ERP Training
Mobile Technology
About SpearMC
6
Founded in 2004, SpearMC is a technology and
professional services firm specializing in
We focus on local market delivery and capability development in line with industry focus areas unique to the regions we serve.
Our local and well-connected network of top-tier business analysts, technical leads, developers and project managers keep travel cost to a minimum.
About SpearMC
7
Regional offices in Chicago, Oklahoma City,
Seattle and San Francisco
We focus on local market delivery and capability development in line with industry focus areas unique to the regions we serve.
Our local and well-connected network of top-tier business analysts, technical leads, developers and project managers keep travel cost to a minimum.
About SpearMC
8
A decade of sustained and focused growth.
About SpearMC
9
Each member of our Leadership Team
leverages over 20 years of experience in
Technology, Financial and Business
Transformation.
Energy
Transportation
Healthcare/Biotech
Government
Media/Technology
Consumer Products
Financial Services
Higher Education
About SpearMC
10
Industry focus areas include:
Gold Level Partner
PeopleSoft Specialization
Applications Reseller
Hardware Reseller
About SpearMC
11
Oracle Gold Partner since 2008:
Multi-Currency Configuration
13
Common Terms
■ Currency Codes
▪ Pound Sterling (GBP)
▪ Mexican Pesos (MXN)
■ Exchange Rates
■ Market Rates (exchange rates, interest rates, stock price, etc.)
■ Currency Rate Types (Average, Current, Historical, etc.)
■ Base Currency (each Business Unit must have one base currency)
■ Foreign Currency (any currency that is not base currency)
■ Reporting Currency (any currency you use for reporting)
Multi-Currency Configuration
15
Loading Market Rates
■ PeopleSoft comes delivered with standard currency codes, however,
if a particular code does not exist then:
‒ Insert currency into CURRENCY_CD_TBL
‒ Insert currency quotation method into CURR_QUOTE_TBL
‒ Insert market rate definition into RT_RATE_DEF_TBL
■ Update Rates for existing currency code:
‒ Insert market rate for current effective period into RT_RATE_TBL
Multi-Currency Configuration
16
Loading Market Rates
Rate File
New Currency
CURR_QUOTE_TBL
RT_RATE_TBL
CURRENCY_CD_TBL
RT_RATE_DEF_TBL
NO
YES
Note: Can use Excel to Component Interface
Multi-Currency Configuration
17
Currency Quotation Method■ Indirect
‒ Determine whether you want the rates for a currency pair quoted
indirectly.
‒ For example, in converting United States dollars (USD) to Swiss Francs
(CHF), an indirect quote would indicate that USD x.xxxx = CHF 1
■ Direct
‒ Determine whether you want the rates for a currency pair quoted directly.
‒ For example, in converting United States dollars (USD) to Swiss Francs
(CHF), a direct quote would indicate that USD 1 = CHF x.xxxx. In this
case, Swiss Francs are quoted directly against the United States dollar
Multi-Currency Configuration
19
Currency Precision Rounding
■ Currency dictates the precision of monetary amounts.
■ For example, United States dollar amounts have two digits to the right
of the decimal and Japanese yen have none.
■ PeopleSoft software addresses currency precision as follows:
‒ PeopleSoft delivers currency sensitive amount fields with a standard length of 23.3 (23
digits to the left of the decimal point and 3 digits to the right of the decimal point)
‒ By default, PeopleSoft software rounds all currency sensitive amount fields to the
currency precision of the associated currency. This action is a PeopleTools option that
you can deactivate.
‒ All numbers on SQR reports are currency sensitive. For reporting with XML and
PS/nVision, the display is equal to the field precision, but you can increase the number
of decimals.
‒ The journal entry screen will show an error if a user enters more decimal places than
specified on the currency code page
Multi-Currency Configuration
20
Currency Precision
Currency precision ranges from zero decimal points to three
decimal points per ISO standard
The journal will be in error if more decimal places than specified on
the currency code page are entered
Multi-Currency Configuration
21
Currency Triangulation
Cross currency triangulation allows you to convert two currency
pairs, which do not exist as standard pairs, using a third currency
as a reference
Multi-Currency Configuration
22
Currency ControlsControls that are defined for a ledger group override those defined for a
business unit, and controls selected for a source override both a ledger
group and a business unit.
■ Business Unit
Establish Base Currency
Currency Balance Options
■ Ledger Group
Rounding Adjustment Option
■ Journal Source
Multi-Currency Journals
29
Journal Line – Primary Ledger
■ Adjust Amount or Rate for Primary Ledger (ACT_LOC)
■ If you change either the Amount, Base Amount or Rate, you can have
the system calculate one of the three by changing the Calculate
value or just leave the System Rule default
Multi-Currency Journals
30
Ledger
■ You can define multiple ledgers for various multi-national reporting
■ Ledgers in Sync
‒ When you enter a two line journal entry for a ledger group that
contains two ledgers, the system creates two additional lines.
Multi-Currency Journals
31
Journal Line – Secondary Ledger
■ Adjust Base Amount or Rate for Secondary Ledger (SEC_USD) to
update the translated values
Multi-Currency Journals
32
Keep Ledgers in Sync
■ The following query shows journal lines generated for the two ledgers
in this example:
‒ ACT_LOC is the primary ledger
‒ SEC_USD is the translate ledger, which translates transactions in
real time
Multi-Currency Re-Measurement
34
Revaluation■ You may need to revalue the base currency of the balance sheet
accounts that you maintain in foreign currencies to reflect changes in
value due to fluctuations in exchange rates
■ Revaluation process adjusts the base currency value of the account
balances by creating adjusting entries for the accounts being revalued.
■ The process creates corresponding entries for any gain or loss that
results from the revaluation.
■ Revaluation takes place at the end of each accounting period for all
Asset and Liability accounts prior to translation.
‒ Ledger: ACT_LOC (in this example)
‒ Timespan: BAL
‒ Rate Type: CRRNT
Multi-Currency Re-Measurement
35
Revaluation Example
Note: Same $87.67 transaction is now worth $100.88
Multi-Currency Re-Measurement
36
Revaluation at Subsystem■ Re-measurement of gains/losses at ledger, customer and vendor
levels
■ Accounts Payable
‒ The PS/AP Revaluation process finds all unpaid, posted vouchers
for the specified business units as of the specified date whose
transaction currency is not the same as the base currency of the
general ledger business unit.
‒ For each unpaid voucher, it uses the specified exchange rate and
calculates a revaluation amount.
‒ The accounting entry consists of an unrealized gain or loss entry
with a matching offset on the payables account.
Multi-Currency Re-Measurement
37
Translation■ For reporting purposes, you can translate base currency balance of foreign
entity to your reporting currency.
■ You can maintain a secondary ledger (SEC_USD) for real time translation at
the effective CRRNT rate or AVG rate.
■ Translation takes place at the end of each accounting period for all accounts
after revaluation.
■ Translation only occurs for Business Units with non-USD base currency when
translating to USD.
■ The process creates corresponding entries for any gain or loss that results
from the translation.
‒ Ledger: SEC_USD (in this example)
‒ Timespan: BAL (Balance Sheet accounts) PER (Income Statement accounts)
‒ Rate Type: CRRNT (Balance Sheet accounts) AVG (Income Statement accounts)
Multi-Currency GL Adjustments
40
Scenario 1 - Adjust Original Base Amount
■ Adjustment in Period 2
■ Since the original transaction amount never goes to zero, you will
always have a “revaluation adjustment” from month to month
Multi-Currency GL Adjustments
41
Scenario 1 - Adjust Original Base Amount
■ Adjustment in Period 2
■ Since the original transaction amount never goes to zero, you will
always have a “revaluation adjustment” from month to month
Multi-Currency GL Adjustments
42
Scenario 2 - Adjust Translated Amount■ Adjustment in Period 2
■ Since the original transaction amount never goes to zero, you will
always have a “revaluation adjustment” from month to month
■ But now you will have revaluation for GBP and USD amounts
Multi-Currency GL Adjustments
43
Scenario 2 - Adjust Translated Amount■ Adjustment in Period 2
■ Since the original transaction amount never goes to zero, you will
always have a “revaluation adjustment” from month to month
■ But now you will have revaluation for GBP and USD amounts
Multi-Currency GL Adjustments
44
Scenario 3 - Adjust Original Transaction Amount■ Adjustment in Period 2 – using same rate
■ Adjustment in Period 2 – using current rate
■ You will have a temporary residual until “revaluation” is processed
Multi-Currency GL Adjustments
45
Scenario 3 - Adjust Original Transaction Amount■ Adjustment in Period 2 – using same rate
■ Adjustment in Period 2 – using current rate
■ You will have a temporary residual until “revaluation” is processed
Multi-Currency Reporting
48
Reporting from GL Ledger Table
■ Transaction Amount (POSTED_TRAN_AMT)
‒ Can be in any currency code
‒ Serves as the foreign amount when the currency code is different
then the base currency code defined for that Business Unit
■ Base Amount (POSTED_BASE_AMT)
‒ Only one currency code can be defined for a Business Unit
■ Posted Total Amount (POSTED_TOTAL_AMT)
‒ Any amount that is posted to Ledger, can be in foreign currency or
base currency
‒ When used in reporting, you will always have to specify the currency
code
Multi-Currency Reporting
49
Ledger Example
■ For multi-currency ledger reporting it is safest to use Posted Base Amt
■ If you used Posted Total Amt, you always have to make sure to
designate the correct currency
Multi-Currency Reporting
50
nVision Report■ Layout Tips
‒ Use Based Amount (POSTED_BASE_AMT) so you won’t have to
identify the currency
‒ Include all currency codes as nVision automatically defaults to
USD if not specified
Multiple GAAPs
52
Ledger Approach Book Code Approach
Local GAAP Adjustments
CommonIFRS
Adjustments
Local GAAP
IFRS
Multi-GAAP Ledger
L = Local Book Code C = Corp Book Code B = Common Book Code
Transactions are posted to the respective ledgers. nVision is used to produce reports for
Local GAAP and IFRS.
Single ledger holds transactions for all GAAPs; Book Code ChartField used to
identify transactions; Ledger Code is used to produce the Local GAAP and IFRS reports.
CommonLocal Only
IFRS Only
Ledger Code - LOCAL
Ledger Code = IFRS
BU ACCOUNT ALT ACCT
Corp GAAP Local GAAP
Multiple GAAPs
53
Ledger Approach
• The Ledger approach allows users to define different or multiple
ledgers to suit the organization’s structure.
• The user can have one ledger that addresses common transactions.
• A second ledger that groups IFRS adjustments.
• A third ledger for entering local GAAP adjustments.
• The user can then create reports using nVision and Tree Manager to
group the ledgers as appropriate.
Multiple GAAPs
54
Book Code Approach You can use Book Code to handle multiple GAAP requirements within
the same ledger.
The Book Code ChartField can identify a transaction as either local
GAAP, IFRS or both.
This allows items that affect both local GAAP and IFRS
simultaneously to be entered only once rather than duplicated to each
associated ledger.
Users can then use Ledger Codes to define what transactions (based
on Book Codes) to use in their reports.
This allows organizations to ensure consistency with accounting and
data gathering across the world, while at the same time recording
transactions in compliance with local regulation.
Multiple GAAPs
55
Book Code
If you activate the book code, you must specify a
book code for each account value.
‒ You can attach these book codes to accounts as attributes
‒ A unique account value must be created for each book code
‒ Book code appears as a read only field on the journal entry
page
■ Can override at time of Journal Entry
‒ The Allow Book Code Override option that is set on the
ChartField Account page
‒ Using this method, you can associate any of your book
codes with the same account value to record related
amounts in the same ledger
Multiple GAAPs
56
Ledger Code Use this page to create ledger codes
Assign them to the applicable book codes to define subsets that
segregate various accounting treatments of transactions
Multiple GAAPs
57
Alternate Account
■ You can enter and maintain both a statutory (local) account value and a corporate (internal) account
value at the detail transaction level within General Ledger, as well as within subsystems.
SpearMC.com/insights: Tools & Resources
58
SpearMC Presentation at Reconnect
59
Wednesday, July 22 @ 1:30-2:20pm Powerful PeopleSoft 9.2 Connected Query
Session ID: 103070
Presented by Keith Harper
Thursday, July 23 @ 1:30-2:20pm Beyond the Basics with nVision and Query for
PeopleSoft 9.2 Session ID: 100210
Presented by Millie Babicz