4 Understanding Multicurrency Setup

This chapter contains the following topics:

4.1 Setup for Basic Multicurrency

To use JD Edwards EnterpriseOne Multicurrency Processing, you must set up basic information that is used throughout the JD Edwards EnterpriseOne systems.

This table describes the setup tasks for basic multicurrency processing and the programs used:

Task and Description Program
Enter Y or Z in the Multi-Currency Conversion field to activate multicurrency. General Accounting Constants (P0000)
Set up the currency codes. Enter a currency code for each currency in which you transact business. Designate Currency Codes (P0013)
Set up companies for multicurrency. For each company:

  • Assign a domestic currency code.

  • Determine whether to post account balances by currency and, if applicable, select the Post Account Balances by Currency check box.

  • Determine whether to enable detailed currency restatement and, if applicable, enter 1 in the Detailed Currency Restatement field.

  • Enter a computation ID in the Restatement Computation field, if applicable.

 Company Names & Numbers (P0010)
Set up currency-specific accounts by assigning a currency code to each currency-specific (monetary) account. Revise Single Account (P0901)

4.2 Setup for Exchange Rates

After the initial exchange rate setup, you must update currency exchange rates on a regular basis to provide a default rate for transactions and for realized and unrealized gains and losses.

This table describes the setup tasks for exchange rates and the programs used:

Task and Description Program
To convert amounts from one currency to another using the inverse (multiplier or divisor) method, set up from and to currency relationships and a multiplier or divisor exchange rate for each relationship. Currency Exchange Rate Entry (P0015A)
To convert amounts from one currency to another using the no inverse method, set up from and to currency relationships and a no inverse rate for each relationship. Currency Exchange Rate Entry (P0015A)
To convert amounts when an exchange rate is not quoted in a financial market publication, create a cross-rate relationship for two currencies based on a common currency. Set Cross Rates Calculation (P111511)

Calculate Cross Currency Rates (R11153)
To convert amounts through a triangulation currency:

  • Set up from and to currency relationships with a triangulation currency.

  • Specify a conversion method for leg 1 of the currency relationship. If you specify the multiplier or divisor (inverse) method, the system uses the reverse method for leg 2.

  • Set up exchange rates for leg 1 of the currency relationship. The system uses the reciprocal rate (inverse method) or the same rate (no inverse) for leg 2.

 Currency Exchange Rate Entry (P0015A)
Upload exchange rates from a website as an alternative to entering exchange rates manually. External Exchange Rates Revisions (P0015Z1)

External Exchange Rate Processor (R0015Z1)

4.3 Setup for AAI Unrealized Gains and Losses

The system uses automatic accounting instructions (AAIs) to distribute amounts to the correct general ledger accounts.

This table describes the setup task associated with AAIs for unrealized gains and losses and the program used:

Task and Description Program
To record unrealized gains and losses on monetary (currency-specific) accounts, set up these AAI items:

  • GVxxx: Unrealized gains

  • GWxxx: Unrealized losses

  • GRxxx: Unrealized gain/loss offset

 Automatic Accounting Instructions (P0012)

4.4 Setup for Posting Balances by Currency

If you post balances by currency, you can review account balance amounts by currency in the Account Balances table (F0902) instead of reviewing summarized totals, which are meaningless because of different currencies.

This table describes the setup tasks for posting balances by currency and the programs used:

Task and Description Program
To post account balances by currency:

  • Select the Post Account Balances by Currency check box for each company in which you want to post balances by currency.

  • Set up AAI items PBCxx for beginning and ending account ranges to post balances by currency.

 Company Names & Numbers (P0010)

Automatic Accounting Instructions (P0012)

4.5 Setup for Multicurrency Intercompany Settlements

You must set up the system for intercompany transactions and settlements, regardless of whether you actually create transactions between companies with different base currencies. If you do create multicurrency intercompany transactions, the post creates the necessary balancing entries.

This table describes the setup tasks for generating intercompany settlements in multiple currencies and the programs used:

Task and Description Program
Set constants for multicurrency intercompany transactions and settlements:

  • Enter 2 (detail) or 3 (configured hub) in the Detailed Interco Settlements field.

  • Select the Allow Multi-Currency Intercompany Trans check box.

 General Accounting Constants (P0000)
Set Accounts Receivable and Accounts Payable constants to create an offset entry for each detail record. Enter Y (one offset per document) in the Offset Method field. Accounts Receivable Constants (P0000)

Accounts Payable Constants (P0000)

4.6 Setup for Detailed Currency Restatement

This method of currency restatement enables you to maintain a second set of transactions in a stable currency for reporting purposes.

This table describes the setup tasks for detailed currency restatement and the programs used:

Task and Description Program
Specify 2 (detail) or 3 (configured hub) in the Intercompany Settlements field. Detailed Currency Setup (P11410)
Set up companies for detailed currency restatement. Company Names and Numbers (P0010)
Set up ledger types and rules for the alternate ledger type (XA) and, optionally, the domestic origin (YA) and foreign origin (ZA) ledger types. User-Defined Codes (P0004A)

Ledger Type Rules Setup (P0025)
Set up exchange rates between the domestic currency and reporting currencies. Currency Exchange Rate Entry (P0015A)
Set up AAI items for:

  • CRxx: Beginning and ending account ranges for detailed currency restatement.

  • CR: Offset for detailed currency restatement.

 Automatic Accounting Instructions (P0012)

4.7 Setup for Balance Restatement

This method of currency restatement restates balances into a single currency for consolidated reporting purposes.

This table describes the setup tasks for balance restatements and the programs used:

Task and Description Program
Set up ledger type and rules for the consolidation (AC) ledger. User-Defined Codes (P0004A)

Ledger Type Rules Setup (P0025)
Set up exchange rates to convert amounts from the domestic to the consolidated reporting currency. Currency Restatement Rates (P1113)
For each company, set up the computations to be used by the Compute Restated Balances program. Revise Company Currency Conversions (P1114)
Assign each company a default computation ID. Alternatively, you can assign the computation ID when you run the Compute Restated Balances program. Company Names & Numbers (P0010)

4.8 Setup for As If Restatement

This method of currency restatement eliminates fluctuations in currency exchange rates over a period of time for comparison purposes.

This table describes the setup task for as if restatements and the programs used:

Task and Description Program
Set up ledger type and rules for the as if restatement (AD) ledger. User-Defined Codes (P0004A)

Ledger Type Rules Setup (P0025)