This chapter provides an overview of multiple currency processing in Oracle's PeopleSoft Enterprise General Ledger and discusses how to:
Prepare to revalue account balances.
Define revaluation steps.
Prepare to translate ledger balances.
Set up translation rules.
Define translation steps.
Prepare for the translate within ledger process.
Combine steps into a multicurrency group.
Initiate multicurrency processing.
Put it all together.
Produce revaluation and translation reports.
The uniquely flexible PeopleSoft structure enables you to manage financial information in multiple currencies—you can use a ChartField to designate different currency codes within a ledger or, as required, store each currency in a different ledger.
PeopleSoft also provides specific input, processing, and reporting features that satisfy the most demanding requirements of multinational financial management. We support the European common currency (euro), as well as currency conversions, remeasurement, revaluation, and translation. We also provide a complete audit trail of all multicurrency processing.
PeopleSoft also includes position accounting, which enables you to identify and track the risks associated with holding financial assets in currencies other than your base currency.
See Also
Setting Up Position Accounting
Periodically, 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. The General Ledger Revaluation process (FSPCCURR) adjusts the base currency value of the account balances by creating adjusting entries for the accounts being revalued. It creates corresponding entries for any gain or loss that results from the revaluation. Revaluation typically takes place at the end of each accounting period prior to translation.
For example, suppose that a company whose base currency is U.S. dollars (USD) made the following cash deposits in Swiss francs (CHF):
Transaction Date |
Swiss Francs |
Exchange Rate |
U.S. Dollars |
January 10, 2003 |
100 |
0.45 |
45 |
January 15, 2003 |
100 |
0.50 |
50 |
January 20, 2003 |
100 |
0.55 |
55 |
January 31, 2003 Balance |
300 |
150 |
At month end, revaluation takes place at the CHF to USD exchange rate of 0.55. The account is revalued at 165 USD (300 * 0.55 = 165). The following journal entry recognizes the increase in value with a debit of 15 USD to the asset account and a corresponding credit to the revaluation gain account:
Description |
Debit |
Credit |
Cash in Bank |
15 USD |
|
Revaluation Gain |
15 USD |
Note. General Ledger revalues ledger balances for all foreign currencies.
When you want the results of revaluation to go into accounts that are different from the source accounts, use the Target ChartField Entry page, on which you can indicate target unrealized gain and loss accounts.
In General Ledger, the following processing takes place when you revalue accounts:
Revaluation gains and losses are calculated for accounts maintained in foreign currencies.
Balances of affected accounts are adjusted to the new value.
The system generates an adjusting entry to the base currency balance plus a corresponding entry to the revaluation gain/loss account.
You can choose to:
Create journal entries to reverse the revaluation results in the following period.
Create journal entries to provide an audit trail of revaluations automatically.
Report revaluation gains and losses using PS/nVision.
To define revaluation steps, use the Revaluation Step component (REVAL_STEP).
This section discusses how to:
Specify a ledger and TimeSpan for revaluation.
Specify source ChartFields for revaluation.
Specify output and journal options for revaluation.
Specify gain and loss ChartFields for revaluation.
Page Name |
Object Name |
Navigation |
Usage |
REVAL_STEP_LED_TM |
General Ledger, Process Multi-Currency, Define and Process, Revaluation Step, Ledger and TimeSpan |
Define a ledger, TimeSpan, and rate type for revaluation. |
|
REVAL_STEP_CF |
General Ledger, Process Multi-Currency, Define and Process, Revaluation Step, Source ChartFields |
Identify accounts to revalue. |
|
CURR_STEP_OUT_JR |
General Ledger, Process Multi-Currency, Define and Process, Revaluation Step, Output and Journal Options |
Specify output options, journal information, and revaluation reversal options. Also, use the Translation Step - Output and Journal Options version of this page to determine whether General Ledger automatically posts translated amounts to the ledger or generates journal entries for subsequent posting. |
|
CURR_STEP_GN_LS |
General Ledger, Process Multi-Currency, Define and Process, Revaluation Step, Gain and Loss ChartFields |
Identify the revaluation gain and loss accounts or specify the specific accounts where you record translation gain or loss. |
Access the Ledger and TimeSpan page.
From Ledger Group and Ledger |
Specify the from ledger group and specific ledger in which you want to perform the revaluation. You cannot specify a translation ledger for revaluation. If you do not specify a ledger, revaluation revalues the amounts of all the ledgers in the ledger group. In order to revalue a ledger group with KLS (keep ledgers in sync) selected, you must leave the Ledger field blank. Note. The effect of a base amount adjustment resulting form a revaluation of a primary ledger within a ledger group that has keep
ledgers in sync (KLS) on, is carried down to a translate ledger if it is a secondary ledger in that KLS ledger group by either
a journal edit or by a revaluation if the edit option is not selected. |
TimeSpan |
General Ledger generates journal entries whose amounts represent the period of time indicated by the TimeSpan for the revaluation being processed. The TimeSpan normally used for balance sheet accounts is BAL (year to date). With this TimeSpan, the system totals the account balances in periods 0 through n for balance sheet accounts. |
Rate Type |
Enter the exchange rate type for the process. |
Access the Source ChartFields page.
ChartField |
Select the ChartField (for example, Account or Alternate Account) for which values are to be revalued using the TimeSpan and rate type specified. |
How Specified |
List your accounts individually by selecting the Selected Detail Values check box or, more likely, select the Selected Tree Nodes check box. The latter option activates the Tree Information fields for you to specify a tree from which to select nodes. Using trees establishes rollups for the account values so that you can select particular types of accounts according to the structure of your business unit. |
Tree |
Use trees to establish rollups for account values. |
Level |
(Optional) If the tree has levels, you can limit prompting in this field to selected levels. |
ChartField Values/Tree Nodes |
Select particular types of accounts according to the structure of your business unit. We recommend that you use trees whenever possible to reduce future maintenance when your ChartField values change. |
Access the Output and Journal Options page.
Journal ID Mask |
Identifies the revaluation journal naming convention that you specify. General Ledger identifies journals by a 10-character alphanumeric identifier. The system automatically names journals starting with the mask value that you specify here. For example, if you entered a mask of RVAL1, the system supplies the remaining characters based on the next available journal ID number. If the next available journal ID number is 19, the generated journal ID would be RVAL100019. Alternatively, if you do not use the journal ID mask, the system automatically assigns the next 10–character available journal ID number. If you use a journal ID mask, reserve a unique mask value to ensure that no other process creates the same journal ID. |
Description |
Describes this revaluation step. |
Source |
Identifies the source of the journals. You can select any valid source on the Source table. |
Document Type |
If you enabled PeopleSoft Document Sequencing in your system, select a predefined document type for your revaluation journals. Document sequencing requires that you have a document type for all of the journal entries that you create. |
Create Journal Entries |
Creates journal entries with a header status of V = Valid that can be posted automatically as part of revaluation processing or through the normal posting methods. Select the Post Journal(s) check box along with this option to automatically post the journals created. |
Edit Journal(s) |
Because values being processed are from previously edited data in existing ledger tables, journal entries are created with a valid status. However, you can submit journal entries created by revaluation to the journal edit process to be validated for such things as changes to combination edits or inactivated ChartFields. You can then review the journals using journal inquiry after you edit them. Note. To restrict further activity for inactive accounts that have balances, you bypass journal edit and post translation journals for these accounts. Clear the Edit Journals check box to bypass journal edit. The multicurrency process handles the multibook processing features within journal edit for these journals. |
Budget Check Journal(s) |
Submits journal entries to the budget processor for the control budget. |
Post Journal(s) |
Posts the journals to the target ledger as part of revaluation processing. When you process multiple revaluation steps together, where each step depends on the results of the previous step, you must select this check box for all but the last step to provide updated ledger balances for each subsequent step. In the last step, posting the journals is optional. The journals created by multicurrency processing are not intended or designed to be viewed using the journal entry pages before running journal edit or journal post. |
Note. When you run revaluation on secondary ledgers in a multibook ledger group, the revaluation version of this page produces a journal with a journal header and journal lines for the secondary ledgers only. This is done to optimize performance. If you attempt to view these journals using the Journal Entry pages, this type of journal may appear corrupt because there are no primary ledger lines for the ledger group. If you want to view the primary ledger lines from the Journal Entry pages, the recommended procedure is to run the Journal Edit process on all multicurrency journals. The journal editing process creates the missing primary ledger lines needed to view the complete journal.
See Setting Up Multicurrency Processing.
Adjustment Period
Target to Adjustment Period |
Click to specify an adjustment period as the accounting period for the revaluation journals, and enter a period in the Target Adjusting Period field. An adjustment period revaluation journal can only be reversed to an adjustment period. If you want to reverse the journal, click the Reversal link and select the Adjustment Period check box to enter an adjustment period in the Specify field on the MultiCurrency Process Journal Reversal page. |
Reversal
Reversal |
Click the link to access the option. To facilitate period based reporting, the system generates a reversal for the period that follows the revaluation process period. The net amount that results on the target ledger represents the current period year-to-date (YTD) amount, less the reversal amount generated by the prior period process run. (The reversal journal date is calculated using the as-of date of the process request, the reversal option, and business unit calendar.) |
Select a reversal code:
Do Not Generate Reversal |
Select for no automatic reversal of this entry. |
Beginning of Next Period |
Creates a reversing entry dated the first business day of the next accounting period. The system uses the business calendar that you assigned to the business unit on the General Ledger Definition - Definition page to determine the first business day. This is the default. |
End of Next Period |
Creates a reversing entry dated the last business day of the next accounting period. The business calendar that you assigned to the business unit on the General Ledger Definition - Definition page determines the last business day. |
Next Day |
Creates a reversing entry dated the next business day. This option uses the business calendar that you assigned to the business unit on the General Ledger Definition - Definition page to determine the next business day. |
Adjustment Period |
Select and enter an adjustment period in the Specify field only for revaluation journals for adjustment periods. |
On Date Specified By User |
Click and specify a date that you want in the Reversal Datefield. |
Reverse even if cross years |
Reverse even if reversal occurs in the next year. |
Target ChartFields
ChartField |
Select the ChartFields to be included in the revaluation journal entries. The ChartFields defined here relate to the ChartFields that you specified on the Specifying Gain and Loss ChartFields for the Revaluation page. If you are balancing by ChartFields, include all balancing ChartFields as your target ChartFields. |
Retain Value (retain ChartField value) |
You can either select this check box or enter a ChartField value in the Chartfield Value column. If you select this check box, the ChartField values are carried over from the source transaction entries to the system-generated position accounts. For the ledger defined on the Ledger and TimeSpan page and for a balancing ChartField as defined in the ledger group, if Retain Value is selected for the gain and loss ChartFields, it must also be selected here for the Target ChartField. If Retain Value is not selected for gain and loss ChartFields, then it is clear for the Target ChartField. All three fields must have the same ChartField value if retain value is not selected. |
ChartField Value |
If you did not select the Retain Value check box, use this field to specify the ChartField value that is to be used for the system-generated target account. If you enter a ChartField value here, the system ignores the ChartField value on the source transaction entry. When a ChartField value is not included in target ChartFields, it is blank for the target journals. Extra gain or loss entries can be created from multiple runs of revaluation, if the gain ChartField value is different from the corresponding loss ChartField value. |
Access the Gain and Loss ChartFields page.
General ledger posts the offsetting entries that correspond to the adjusting entries created during revaluation to the accounts specified as follows—credits to the gain ChartFields, debits to the loss ChartFields.
Gain ChartKeys |
Enter the ChartField and either select the Retain Value check box or enter a value in the ChartField Value field. |
ChartField |
Indicate the ChartFields to be included in the revaluation gain and loss journal entries. If you are balancing by ChartFields, include all balancing ChartFields (do not include business unit and currency) as your target ChartFields. |
Retain Value (retain ChartField value) |
You can either select this check box or enter a ChartField value in the Chartfield Value field. If you select this check box, the ChartField values are carried over from the source transaction entries to the system-generated position accounts. Select Retain Value for a ChartField for both gain and loss, or for neither. So, for the same ChartField, either select both check boxes, or clear both. For the ledger defined on the Ledger and TimeSpan page, for a balancing ChartField as defined in the ledger group, if Retain Value is selected for the gain and loss ChartFields, it must also be selected for the Target ChartField. If the Retain Value check box is clear for gain and loss ChartFields, then it is clear for the Target ChartField. All three fields must have the same ChartField value if Retain Value is clear (not selected). Extra gain or loss entries may be created from multiple runs of revaluation if a ChartField is set to retain value in gain or loss but not in target. If some ChartFields are not included as target ChartFields, they will be blank. |
ChartField Value |
If you did not select the Retain Value check box, use this field to specify the ChartField values that are to be used for the system-generated target account. If you enter a ChartField value here, the system ignores the ChartField value on the source transaction entry. When a ChartField value is not included in target ChartFields, it will be blank for the target journals. |
Loss ChartKeys |
Enter the loss ChartField and either select the Retain Value check box or enter a ChartField value. The field definitions for the loss ChartFields are the same as for gain ChartFields. If a ChartField retains value for gains, it must retain value for loss, and conversely. |
Note. When you balance by ChartFields, if a balancing ChartField is designated as a gain or loss ChartField, then the balancing ChartField overrides the value specified on this page.
General Ledger translates posted balances into different currencies according to the rules you define, and calculates gains or losses due to restatement. You can run translation at any time because it is a background process. General Ledger can perform regular translation on any type of ledger.
If you perform multiple translations for each business unit—such as a remeasurement followed by translation— General Ledger enables you to define a separate set of processing rules for each translation. It considers each translation as a translation step.You can process as many translation steps as you require at one time.
Note. Although remeasurement is considered a separate process to precede translation under FASB 52, it is defined in General Ledger as a translation step with different exchange rates. To perform a remeasurement, set up a translation step as described in this section to translate your base currency balances to functional currency balances. You can also use the multibook feature to maintain a secondary ledger in your functional currency.
See Also
Because different accounts are translated according to different exchange rate rules, you can use the Translation Rule pages to define which accounts are processed with which conversion rate types. This information defines your approach to translating types of accounts. For example, you can translate your asset and liability accounts at the current rate, but use historical rates to translate equity accounts. You refer to these rules when you define your translation steps.
To set up translation rules, use the Translation Rule component (TRANS_RULE).
This section discusses how to:
Define TimeSpans and rates for a translation rule.
Define ChartFields for a translation rule.
Page Name |
Object Name |
Navigation |
Usage |
TRANS_RULE_TIME_RT |
General Ledger, Process Multi-Currency, Define and Process, Translation Rules, TimeSpan and Rate |
Define TimeSpans and rates for a translation rule. |
|
TRANS_RULE_CF |
General Ledger, Process Multi-Currency, Define and Process, Translation Rules, Chartfields |
Indicate the ChartFields for the translation rule. |
Access the TimeSpan and Rate page.
TimeSpan |
General Ledger generates journal entries for amounts that represent the period of time indicated by the TimeSpan for the translation rules being processed. The TimeSpan normally used is ITD (inception-to-date profit and loss accounts) or BAL (balance sheet accounts). With these TimeSpans, the system sums the account balances in periods 1 through n for profit and loss accounts and periods 0 through n for balance sheet accounts. |
Rate Type |
Select the applicable exchange rate type. |
Access the Chartfields page.
ChartField |
Select the ChartField (Account) to be translated using the TimeSpan and rate type specified. For example, assets and liabilities are typically translated as balances (BAL) at the current exchange rate (CRRNT), while retained earnings are translated at a historical exchange rate (HSTRE). |
How Specified |
For example, list your asset accounts individually by selecting the Selected Detail Values check box or, more likely, select the Selected Tree Nodes check box. The latter option activates the Tree Information fields for you to specify a tree from which to select nodes. |
Tree |
Enter each tree node; entering level is optional. If the tree has levels, you can limit prompting in this field to selected levels. Using trees establishes rollups for the account values so that you can select particular types of accounts according to the structure of your business unit. We recommend that you use trees whenever possible to reduce future maintenance when your ChartField values change. |
Use the Translation Step pages to define how a specific translation is to be processed.
To define translation steps, use the Translation Step component (TRANS_STEP).
This section discusses how to:
Specify ledgers for translation.
Specify rules for translation.
Specify output and journal options for translation.
Specify gain and loss ChartFields for translation.
Page Name |
Object Name |
Navigation |
Usage |
TRANS_STEP_LED |
General Ledger, Process Multi-Currency, Define and Process, Translation Steps, Ledger |
Specify the source and target ledger group and ledgers for a translation step. |
|
TRANS_STEP_RULE |
General Ledger, Process Multi-Currency, Define and Process, Translation Steps, Rule |
Specify which translation rules to use in this step. |
|
CURR_STEP_OUT_JR |
General Ledger, Process Multi-Currency, Define and Process, Translation Steps, Output and Journal Options |
Use the Specifying Output and Journal Options for Revaluation page to determine whether General Ledger automatically posts translated amounts to the ledger or generates journal entries for subsequent posting. |
|
CURR_STEP_GN_LS |
General Ledger, Process Multi-Currency, Define and Process, Translation Steps, Gain and Loss Chartfields |
Specify the specific accounts where you record translation gain or loss. |
Access the Ledger page.
From Ledger Group |
Specify the ledger group to be translated. |
From Ledger |
Required for translation. You can translate any type of ledger in a group, including secondary, primary, and translation ledgers. |
Target Ledger Group |
Select the target ledger group that is to receive the results. Translation only creates journals to a ledger group that is defined as a translation ledger in the Ledger Group Type field on the Detail Ledger Group page. Translation creates balances for the primary ledger of the target ledger group. Other adjustment journals are allowed to this ledger. |
From Currency Type |
Select one of the following values:
Translation translates to the base currency of the target ledge, and populates both the foreign amount and the monetary amount on the journal, which in turn populates the POSTED_TOTAL_AMT and POSTED_BASE_AMT on the translation ledger. These two fields always are the same on the ledger. In other words, the foreign currency and the base currency will always be the same for the journals posting to this ledger. |
From Currency |
If you selected S (specify) in the From Currency Type field, select the currency code in the from currency drop-down menu. |
Access the Rule page.
Translation Rule |
Select the translation rules while keeping in mind that any translation rules that you select here you must have already defined in the Translation Rules table. |
Access the Output and Journal Options page.
Use the section discussing Specifying Output and Journal Options for Revaluation page to complete this page. General Ledger can generate journal entries for subsequent posting.
See Also
Specifying Output and Journal Options for Translation Within Ledger
Access the Gain and Loss ChartFields page.
Use the section discussing Specifying Gain and Loss Chartfields for Translation Within Ledger to complete most of this page, which determines the specific accounts for which you record translation gain or loss.
However, the following two check boxes appear only on the translation step version of this page:
Check Balance of Step |
Select this check box to have the system check the balances of your step entries to ensure that they are balanced. Checking the balance on your translation step definition entries protects the integrity of your target ledger. If you specify your target ledger as a balanced ledger and you clear this check box, you must select the Generate Adjustment check box so that your target ledger stays balanced. |
Generate Adjustment |
Select this check box to have the system calculate a currency adjustment. If you do a partial translation, your gain or loss includes an offset required to bring your step into balance in addition to the actual currency adjustment. If you clear this check box, the gain ChartFields and loss ChartFields are unavailable. |
See Also
Specifying Gain and Loss ChartFields for Translation Within Ledger
At the end of the accounting period, you can run the Translate Within Ledger translation process against the translation ledger to produce the appropriate gain or loss adjustment. This process handles the translation ledger in the same manner as revaluation processing. The Translate Within Ledger process only processes translation ledgers. (Revaluation processes regular secondary ledgers but not translation ledgers.)
Prepare for this process on the Detail Ledger Group - Definition page by establishing a particular ledger as a translation ledger.
When journal lines are generated online for the secondary ledgers of a multibook ledger group, the base currency is calculated differently for currency (multibook) translation ledgers than for normal secondary ledgers. Normal secondary ledger lines contain a foreign currency and foreign amount equal to the transaction currency and transaction amount of the primary ledger. For multibook translation ledgers, lines are generated with the foreign currency and foreign amount equal to that of the base currency and base amount of the primary ledger. This results in multibook translation ledgers having at most one foreign currency at any time. This foreign currency will always be the base currency of the primary ledger of the ledger group.
The Translation Within Ledger process generates a translation adjustment with the multibook translation ledger for specified accounts in order to maintain a real time balance for the accounts. Use the Translate Within Ledger Group pages to define the criteria for running this process.
To prepare for the Translate Within Ledger process, use the Translation Within Ledger component (MBXLAT).
This section discusses how to:
Specify a ledger and TimeSpan for translation within ledger.
Specify ChartFields for translation within ledger.
Specify output and journal options for translation within ledger.
Specify gain and loss ChartFields for translation within ledger.
See Also
Linking Ledgers to a Ledger Group
Page Name |
Object Name |
Navigation |
Usage |
MBXLAT_STEP_LED_TM |
General Ledger, Process Multi-Currency, Define and Process, Translation Within Ledger, Ledger and TimeSpan |
Define a ledger and TimeSpan for the Translate Within Ledger process. |
|
MBXLAT_STEP_CF |
General Ledger, Process Multi-Currency, Define and Process, Translation Within Ledger, Chartfields |
Identify the accounts that you want to include in your step. |
|
CURR_STEP_OUT_JR |
General Ledger, Process Multi-Currency, Define and Process, Translation Within Ledger, Output and Journal Options |
Determine whether General Ledger automatically posts translated amounts to the ledger or generates journal entries for subsequent posting. |
|
CURR_STEP_GN_LS |
General Ledger, Process Multi-Currency, Define and Process, Translation Within Ledger, Gain and Loss Chartfields |
Specify the specific accounts where you record translation gain or loss. |
Access the Ledger and TimeSpan page.
Although the Translation Within Ledger - Ledger and TimeSpan page is a different object from the Revaluation - Ledger and TimeSpan page, both pages have all their fields in common.
From Ledger Group and Ledger |
Specify the from ledger group and specific ledger in which you want to perform the Translate Within Ledger process. You must specify a translation ledger for this process. If you do not specify a ledger, the Translate Within Ledger process is run by the system against all the translation ledgers in the ledger group. |
TimeSpan |
General Ledger generates journal entries for which the amounts represent the period of time indicated by the TimeSpan for the step definition being processed. The TimeSpan typically used is BAL (balance sheet accounts). With this TimeSpan, the system totals the account balances in periods 0 through n for balance sheet accounts. |
Rate Type |
Enter the applicable rate type for the process. |
See Also
Specifying a Ledger and TimeSpan for Translation Within Ledger
Access the Chartfields page.
Although this ChartField page has a different object name than the Revaluation - Source Chartfields page, both pages have their fields in common. See the Specifying Source ChartFields page for the revaluation topic.
Chartfields |
Select the accounts to be processed in the Chartfields group box. For example, you can list your balance sheet accounts individually as detail values or, more typically, you can define tree nodes. Using trees establishes rollups for the account values so that you can select particular types of accounts according to the structure of your business unit. |
See Also
Specifying Source ChartFields for Revaluation
Access the Output and Journal Options page.
Refer to the discussion about the Specifying Output and Journal Options for Revaluation page when specifying output options, journal information, and revaluation reversal options for the Translation Within Ledger process.
See Also
Specifying Output and Journal Options for Revaluation
Access the Gain and Loss Chartfields page.
Refer to the discussion of the Specifying Gain and Loss Chartfields for Revaluation page when specifying your Translate Within Ledger gain and loss accounts.
See Also
Specifying Gain and Loss ChartFields for Revaluation
Once you have defined the steps necessary to accomplish your desired revaluation, translation, or Translate Within Ledger process, you define a multicurrency group that specifies the processing sequence for these steps.
To combine steps into a multicurrency group, use the Currency Group component (CURR_GROUP).
This section discusses how to combine steps in a multicurrency group.
Page Name |
Object Name |
Navigation |
Usage |
CURR_GROUP |
General Ledger, Process Multi-Currency, Define and Process, Define Process Group, Multi-Currency Process Group |
Define a multicurrency group. |
Access the Multi-Currency Process Group page.
Sequence |
Determines the order in which the system performs the steps. Because the ledger may be updated with each step, it is important to perform the steps in the appropriate sequence. |
Process Step |
Enter the revaluation, translation, or Translate Within Ledger Process step. The system displays the description for the process step. After defining a step, you can select it for the multicurrency group sequence. You can also reuse steps from other multicurrency groups. |
Continue |
Click this link to indicate that even if this step fails, processing should continue to the next step. |
This section discusses how to request multicurrency processing.
Page Name |
Object Name |
Navigation |
Usage |
CURR_REQUEST |
General Ledger, Process Multi-Currency, Define and Process, Request Process, Multi-Currency Process Request |
Once you have specified the multicurrency group, use this page to set up a multicurrency processing request. |
Access the Multi-Currency Process Request page.
Group |
Identify the multicurrency group to be processed with this request, for example,REVALBAL for Revaluation processing. When errors occur and processing aborts, you can restart processing at the step that failed by selecting the Start Step check box rather than processing all the steps in a process group. This option becomes available only if errors occurred during processing. |
Calc Log (calculation log) |
Select this check box if you want the system to create a log of all the calculations performed during processing. |
Request Date Option |
You can select the As of Date, and then specify a date in the As of Date field. You can define steps using relative TimeSpans, such as BAL (current balance). A relative time span causes the process that you are running to retrieve ledger amounts relative to the as of date specified on the MultiCurrency Process Request page. The steps processed by this multicurrency process request must be effective on or before the as of date. You can also select Business Unit Process Date, in which case the process uses the date option on the business unit general ledger definition. The system retrieves the date and uses it as the as of date. |
As of Date |
Used to retrieve the following:
If a step definition indicates that a journal should be created, then the system uses the as of date as the journal date. |
Note. The journals created by multicurrency processing were not designed for viewing with the Journal Entry pages. Run the Journal Edit process against these journals before you attempt to view them.
Let us look at two multicurrency processing scenarios. The first scenario shows how you maintain multiple books using all multicurrency processes; the second scenario compares the single book translation to the results of maintaining a translation ledger within a multibook environment.
This section discusses how to:
Use multicurrency processing in a multibook environment.
Compare multibook translation ledger results to translation in a single book environment.
Note. General Ledger must be installed and the Create MultiBook Accounting Entries in Subsystems check box must be selected on the Installed Products page for multibook functionality to be available in subsystems, such as PeopleSoft Accounts Payable.
In the following example, we demonstrate multicurrency processes in a multibook environment. Suppose that your company uses the following ledger structure:
Business Unit: |
C007 (CHF) |
Ledger Group: |
MULTI-TRAN |
Ledgers: |
|
Also assume the following currency transactions:
Currency Exchanges |
Exchange Rate − Transaction Date |
Exchange Rate − Reporting Date |
MXN to CHF |
0.295 |
0.297 |
MXN to EUR |
0.179 |
0.175 |
CHF to USD |
0.602 |
0.605 |
The results of using revaluation in a multibook environment is explained in the next section.
Using Revaluation in a Multibook Environment
The following topics discuss various aspects of revaluation processing in a multibook environment.
Beginning Ledger
This table shows the results of revaluation in a multibook environment. Assume that the following balances exist in the ledger. Account 2001 is a balance sheet account; 8001 is a profit and loss account. The base amount calculations are shown to exhibit the derivation of the base currency balance:
Assumed beginning ledger balances
Month End Revaluation Journal (Only Revalue Balance Sheet Accounts)
This journal results from running revaluation on the entire ledger group. The revaluation process skips the report ledger because it is specified as a translation ledger. The actuals and local ledgers are revalued. Running journal edit on this ledger carries the adjustments to the base currency of the actuals ledger down to the report ledger.
Month end revaluation
Ending Ledger
The following table contains the ending ledger amounts after the revaluation:
Ending ledger amounts
Translate Within Ledger Process
After revaluation, you run the Translate Within Ledger process, which generates the translation adjustment. Only the report translation ledger are processed. Continuing with the previous example, the report ledger balances are shown as follows.
Beginning Ledger (Report Only)
The following table contains the beginning ledger amounts to appear on the translation ledger for reports only:
Account |
Foreign Currency |
Foreign Currency Balance |
Report (USD) |
2001 |
CHF |
29.7 |
17.881 |
8001 |
CHF |
-29.5 |
-17.76 |
Gain/Loss |
CHF |
-0.2 |
-0.121 |
Month End Translation Journal
The output journal that results from the Translate Within Ledger process is shown in this example. This example assumes that the translate within ledger step is defined for balance sheet accounts only, but this need not be the case. You can, for example, define your translate within ledger step definition to include profit and loss, or income statement, accounts to be processed at an average rate.
Month end translation journal
Ending Ledger
The following table shows the ending ledger amounts after you run the translate process for reports:
Account |
Foreign Currency |
Foreign Currency Balance |
Report (USD) |
2001 |
CHF |
29.7 |
17.9685 |
8001 |
CHF |
-29.5 |
-17.76 |
Gain/Loss |
CHF |
-0.2 |
-0.121 |
Translation Adjustment |
CHF |
0 |
0.0875 |
Maintaining a translation ledger within a multibook ledger group results in the same ledger balances as performing a period-end translation on the actuals ledger. To show this, we start with the ledger balances for actuals from the example above, after revaluation is run on the ledger group. We perform a single book translation: actuals (CHF) to ledger group (USD).
Beginning Ledger
The following table shows the ledger balances for actuals ledger after the revaluation is run on the ledger group:
Account |
Currency Code |
Transaction Amount |
Actuals (CHF) |
2001 |
MXN |
100 |
29.7 |
8001 |
MXN |
-100 |
-29.5 |
Gain/Loss |
MXN |
0 |
-0.2 |
Translation Journal
The following table shows the results of running the translation process on the actuals ledger. The translation is simplified for clarity in this example. The balance sheet accounts are translated at the CRRNT exchange rate and the profit and loss, or income statement, accounts are translated at an average rate.
Assume that these are the currency exchange rates:
Conversion and Type |
Exchange Rate on Reporting Date |
CHF to USD (CRRNT) |
0.605 |
CHF to USD (AVG) |
0.604 |
Ending Ledger
The following table shows the resulting balances of this single book ledger:
Account |
Currency Code |
SB Reports (USD) |
2001 |
USD |
(29.7 * 0.605) = 17.9685 |
8001 |
USD |
(-29.5 * 0.604) = -17.818 |
Gain/Loss |
USD |
(-0.2 * 0.605) = -0.121 |
Translation Adjustment |
USD |
-0.0295 |
Compare the resulting balances of this single book translation to the balances in the report ledger of the ledger group MULTI-TRAN. The difference of .058 between the translation adjustment and the value for account 8001 is because the profit and loss, or income statement, account 8001 was translated at the AVG rate, and its offset is included in the translation adjustment. If we had defined an additional translate within ledger step earlier to process this account at the AVG rate type, the balances would be identical.
This section lists standard revaluation and translation reports. To run a report, select it from a menu and enter any necessary parameters. Once you enter the report parameters, use PeopleSoft Process Scheduler to run the report. PeopleSoft Process Scheduler manages the processes, tracks the status, and generates the report behind the scenes while you can continue to work on something else.
For those who want to modify our standard reports, create your own reports, or reformat report output, we offer a variety of reporting tools.
See Also
Enterprise PeopleTools PeopleBooks: PeopleSoft Process Scheduler, “Understanding Process Scheduler”