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TRANSCRIPT
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How to Make PeopleSoft Multi-Currency / Multi-Book
Work for You!
Millie Babicz • SpearMC Consulting
www.spearmc.com
Session #100460
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Session Objectives
Learn about how to configure Multi-Currency functionality, including multi-book. Achieve a better understanding of global reporting to ensure accuracy and to ensure your sub-ledger transactions reconcile regardless which currency is being reported.
• Get users comfortable with setting up multi-currency / multi-book environment
• Tips and tricks on reconciliation in multi-currency environments
• Best practices in getting accurate report results
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About SpearMC
• SpearMC is a full-service consulting and technology services firm with specific focus on
PeopleSoft Financials
• Our consultants and network of PeopleSoft Analysts, Technical Leads and Project
Managers average fifteen years of PeopleSoft experience
• We are North America’s leading provider of custom-tailored PeopleSoft Financial training
solutions and educational content development.
• It is our mission to provide the highest levels of professional service at competitive rates
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Millie Babicz, CPA – Principal
866-SPEARMC x802
Millie Babicz, CPA – SpearMC Principal
• Joined SpearMC Consulting in 2007
• PeopleSoft Financials, Financial Control and Reporting Expert
• Certified PeopleSoft v9.1 Financials
• 20+ Years Experience…majority PeopleSoft
About Your Presenter
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In 2012, SpearMC was recognized by Inc.
Magazine as one of the Inc. 500|5000 Fastest-
Growing Private Companies in America
and by the San Francisco Business Times one of the
100 Fastest-Growing Companies in the Bay
Area
Slide 5About SpearMC
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Financial ServicesPeopleSoft Financials v8.9 Upgrade
PeopleSoft Project Costing v8.9 Implementation
TechnologyUbisoft: PeopleSoft Financials v9.0 Upgrade
NetApp: Oracle Data Warehouse & Reporting
Consumer ProductsFinancials v8.8 Global Implementation
PeopleSoft Financials Long-Term Support
Retail & Logistics24 Hr Fitness: PeopleSoft Reporting Strategy
Bekins: PeopleSoft Billing v8.9 Implementation
Higher Ed & Government Art Institute: PeopleSoft Financials Training
City of Seattle: Chart of Accounts Redesign
SpearMC delivers Oracle/PeopleSoft services across numerous industry domains and markets
About SpearMC
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Our Expertise…
PersonalService
ProfessionalResults
Project Management
Operations
Improvement
Business Intelligence
Education
IT Strategy/
Architecture
Application
Development
ERP Integration
Recruiting/Support
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Contents
• Standard Configuration
• Multi-currency Journals
• Re-measurement
• General Ledger Adjustments
• Reporting
• Multiple GAAPS
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MULTI-CURRENCY
CONFIGURATION
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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 BU must have one base currency)
• Foreign Currency (any currency that is not base currency
• Reporting Currency (any currency you use for reporting)
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Currency• You can define and maintain tables that describe currency codes,
exchange rates, market rates, and currency rate types.
• PeopleSoft software converts journal entries that are denominated in a foreign currency to the base currency and stores all relevant information for later analysis and reporting.
‒ Multicurrency journal entries are posted in both foreign and base currencies.
‒ A foreign currency is any currency other than the base currency.
• The multibook feature allows you to use multiple base currencies, each in the form of a ledger that is defined for a Business Unit.
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Market Rate
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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
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Loading Market Rates
Rate File
New Currency
CURR_QUOTE_TBL
RT_RATE_TBL
CURRENCY_CD_TBL
RT_RATE_DEF_TBL
NO
YES
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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
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Quotation Method
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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 Crystal 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
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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
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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
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Currency Controls:
Controls 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
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Business Unit:
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Ledger Group:
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Journal Source:
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MULTI-CURRENCYJOURNALS
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GL Currency Mapping
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Update Currency Effective Date at Header Level
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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
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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.
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Journal Line – Secondary Ledger
• Adjust Base Amount or Rate for Secondary Ledger (SEC_USD) to update the translated values
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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
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MULTI-CURRENCYRE-MEASUREMENT
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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.
• 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.
• 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)
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• Translation Example
Translation Example
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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
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Note: Same $87.67 transaction is now worth $100.88
Revaluation Example
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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.
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MULTI-CURRENCYGL ADJUSTMENTS
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• Adjustment in Period 2
• Since the original transaction amount never goes to zero, you will always have a “revaluation adjustment” from month to month
Scenario 1 –Adjust Original Base Amount
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• Adjustment in Period 2
• Since the original transaction amount never goes to zero, you will always have a “revaluation adjustment” from month to month
Scenario 1 –Adjust Original Base Amount
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• 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
Scenario 2 –Adjust Translated Amount
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• 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
Scenario 2 –Adjust Translated Amount
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• Adjustment in Period 2 – using same rate
• Adjustment in Period 2 – using current rate
• You will have a temporary residual until “revaluation” is processed
Scenario 3 –Adjust Original Transaction Amount
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MULTI-CURRENCYREPORTING
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GL Currency Mapping
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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
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• 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
Ledger Example
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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
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MULTIPLE GAAPS
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Book Code Approach Multi- GAAP
Ledger
IFRS only
LocalonlyCommon
Ledger Approach
Local GAAPAdjustments
CommonIFRS
Adjustments
Transactions are posted to the respective ledgers, nVisionisused to produce reports for
Local GAAP and IFRS.
Local GAAP
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.
L = LOCAL Book Code
C = Corp Book Code
B = COMMON Book Code
Ledger Code = IFRS
Ledger Code = LOCAL
Alternate Account
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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.
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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.
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Book Code• Supported only by the GL and AM products
• 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
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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
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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.
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Questions?Comments?
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Other SpearMC Sessions
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• www.SpearMC.com
SpearMC Tools & Resources
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Contact Information
• Millie Babicz, Financials Solution Architect
• Marcus Bode, Principal
• David Pigman, Technical Architect
• Keith Harper, SCM Solution Architect
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A PeopleSoft Modular Deep-Dive Event
July 23-25, 2013 Rosemont, Illinois
A JD Edwards EnterpriseOne Deep-Dive EventDecember 2-4, 2013 Denver, Colorado
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