Understanding the Multicurrency Time Accounting Process

This chapter provides overviews of system setup, time entry, and workfile generation, as well as example of multicurrency timecard entries.

System Setup

This section discusses considerations for:

• Setting Up company options in JD Edwards EnterpriseOne Human Capital Management.

• Setting Up JD Edwards EnterpriseOne General Accounting Constants.

• Setting Up Currency Exchange Rates.

• Setting Up UDC 48/MT (markup generation type).

• Setting Up the Time Entry MBF Processing Options (P050002A).

• Setting Up a billing rate and markup table.

• Setting Up employee payroll transactions.

Considerations for Setting Up Company Options in JD Edwards EnterpriseOne Human Capital Management

To enable multicurrency time accounting, you must complete these fields for the default company 00000 in the Company Options program (P05001C):

These settings ensure that the system updates the Employee Transaction History table (F0618).

See Setting Up Company Options.

Considerations for Setting Up JD Edwards EnterpriseOne General Accounting Constants

To enable multicurrency time accounting, you must complete these fields in the General Accounting Constants program (P0000):

See Setting Up Constants for General Accounting.

Considerations for Setting Up Currency Exchange Rates

You must set up currency exchange rates between your company's base currency and the currencies of your customers and suppliers.

See Setting Up Exchange Rates.

Considerations for Setting Up UDC 48/MT (Markup Generation Type)

Verify that the generation type that you use to retrieve billing rates from the Billing Rate / Markup Table program (P48096) has a value of P (payroll recharge rate).

Note. You can define a value other than P (payroll recharge rate). If you use another value, verify that the value that you use is specified as the generation type for the markup rules in the Billing Rate / Markup Table program and that this value is specified in the Generation Type Payroll processing option in the Time Entry MBF Processing Options program (P050002A).

Considerations for Setting Up the Time Entry MBF Processing Options (P050002A)

Complete the Recharge tab in the processing options for a version of the Time Entry MBF Processing Options program (P050002A):

Considerations for Setting Up a Billing Rate and Markup Table

You can use either of these approaches to establish billing rates in billing rate and markup tables:

• Rate override.

• Markup amount or percentage.

To create a billing rate override, you define a specific billing rate that is higher than the normal employee rate. To define a cost markup, you enter a percentage value that the system adds to the normal rate.

Complete this information in the header:

Complete this information in the detail area:

• Object From and Object Thru.

• Markup Amount, Markup Percent, or Markup Rate Override, according to your business needs.

Note. Although you can access the Component Table program (P4860) from the Billing Rate/Markup table program (P48096), multicurrency time accounting does not use the Component Table program.

See Setting Up Billing Rate and Markup Rules.

Considerations for Setting Up Employee Payroll Information

Set up this employee payroll information for each selected employee:

• Enter 2 (payroll and recharge processing) or 3 (recharge processing only) in the Record Type field.

  Note. Setting this option in the employee record is optional. Instead, you can enter 2 for payroll and recharge processing or 3 for recharge processing only in the Record Type field during timecard entry.

• Add a distribution rate or verify that a rate exists on the record.

See Entering Payroll Information for Employees.

Time Entry

This section provides considerations for time entry for multicurrency time accounting.

Considerations for Entering Multicurrency Timecards

Keep these considerations in mind when you enter multicurrency timecards:

• In the processing options for Enter Time by Individual (P051121) or Speed Time Entry (P051121) program, enter the version that you set up for the Time Entry MBF Processing Options program (P050002A) in the Time Entry Version processing option on the Time Entry tab.

• On the Speed Time Entry Revisions form, complete these required fields:

  • Date

  • Batch

• To complete a recharge timecard, complete these fields:

  • Employee Number

  • Pay

  • Hours

  • Account Number

    If you are uncertain about the account number, select Markup Table from the Form menu, enter P in the Gen Type (generation type) column of the QBE line, and click Find to locate accounts that are set up for recharge entries.

  • Work Date

  • Record Type

    If you entered a record type of 2 for the employee record, you do not need to change the Record Type field on the timecard. If you did not enter a record type of 2, override the record type on the timecard with a 2 (payroll and recharge processing). You can use only record types 2 and 3 for recharge transactions.

• Review these fields in the detail area:

  • Foreign Bill Rate

    The system generates the billing rate from the rate information that you established in the billing rate and markup table, based on how you set the processing options for the Time Entry MBF Processing Options program (P050002A), and on the currencies of the home business unit from the employee master record and the business unit of the charges.

  • Base Curr (base currency)

    The base currency is the currency of the employee's home business unit.

  • Cur Cod (currency code)

    The transaction currency is the currency of the job to which time is charged.

  • Bill Rate

    The system generates the billing rate from the rate information that you established in the billing rate and markup table based on how you set the processing options for the Time Entry MBF Processing Options program, and on the currencies of the home business unit from the employee master record and the business unit of the charges.

    Note. If the recharge rate or the bill rate is incorrect, review the effective account dates in the billing rate and markup table. If the date on the timecard is not within the effective dates, the system uses the default rate information from the employee master record.

• Verify the bill rate.

  In this example, the conversion is from CAD to USD. The Company Constant Multi Currency Conversion option is set to use the divisor of .66666667. The calculation is 250.00 ÷ .6666667 = 375.00.

  Bill Rate	Foreign Bill Rate	Base Cur Code	Rech Cur Code
  375.000	250.000	USD	CA

  These fields appear only when multicurrency time accounting is activated:

  • Bill Rate

  • Foreign Bill Rate

  • Base Currency Code

  • Recharge Currency Code

• Note the batch number.

• The system creates entries in the Employee Transaction Detail File table (F06116) when you click OK.

See Entering Timecards for Employees.

Considerations for Generating Timecard Journals

Select Timecard Post/History Update (G05BT11), Generate Timecard Journals.

Complete these steps:

1. Verify the GL date in the processing options.

2. Specify the timecard batch number in the Batch Number (F06116) option for the data selection.

3. Review the report and note the GL batch number.

Considerations for Approving and Posting the Batch

Posting the batch updates the Employee Transaction History table (F0618) and the Account Ledger table (F0911) and clears the Employee Transaction Detail File table (F06116).

See Posting Journal Entries.

Workfile Generation

This section provides considerations for workfile generation for multicurrency time accounting.

Considerations for Generating Workfile Transactions for Timecards

Specify the GL batch number in the Batch Number (F0911) (ICU) option for the data selection.

See Generating the Workfile.

Considerations for Reviewing Workfile Transactions

Search for the GL date, company, customer, or document type. The system updates the Billing Detail Workfile table (F4812) as described in this table:

The system calculates invoice and revenue amounts as with any other type of multicurrency transaction.

Note. The system creates only one T4 transaction even though two lines appear in the Account Ledger table (F0911) journal entry.

See Reviewing Workfile Transactions.

Examples: Multicurrency Timecard Entries

This section provides examples of multicurrency timecard entries.

Setup

This example is based on this employee information:

• Hourly Rate (PHRT, hourly wage on employee's Compensation form) = 25.00

• Distribution Rate (PBRT, on employee's Payroll form) = 45.00

• Home Business Unit = 9, attached to Company 00001, United States currency (USD)

This example is based on these exchange rates to Canadian currency (CAD) from USD:

This example is based on these exchange rates to USD from CAD:

This example is based on this setup:

• Multi-Currency Conversion = Y (multiply)

• Foreign × Exchange Rate = Domestic

• Domestic ÷ Exchange Rate = Foreign

• Labor Account = 77.1341

• Business unit 77 belongs to company 00077, which is set up in the Company Names & Numbers program (P0010) to use currency code CAD.

Test Case 1

These test cases are based on using the home business unit of the employee (USD).

Time Entry MBF Processing Options (P050002A), Recharge tab, processing option 2 (Business Unit Currency for Base Amount) = 0 (Home BU of Employee)

Billing Rate and Markup Table

The billing rate and markup table is set up as described in this table:

Timecard Entry with Override Rate

This example shows a timecard with an override rate:

(Bill Rate) = (Markup rate override from the billing rate and markup table)

(Foreign Bill Rate) = (Domestic Bill Rate) × (Exchange Rate Multiplier [USD to CAD])

250.00 × 2.0 = 500.00

Note. The value of the exchange rate multiplier change when the GL date has a different exchange rate from the date worked.

Timecard Entry with Percent

This example shows a timecard with a markup percentage:

(Bill Rate) = (Hourly Rate [PHRT]) + (Markup)

25 + 150 percent Markup = 62.50

(Foreign Bill Rate) = (Domestic Bill Rate) × (Exchange Rate Multiplier [USD to CAD])

62.50 ×1.50 = 93.75

Note. The value of the exchange rate multiplier changes when the GL date has a different exchange rate than the date worked.

Timecard Entry with Amount

This example shows a timecard with a markup amount:

(Bill Rate) = (Hourly Rate [PHRT]) + (Markup Amount)

25 + 10 = 125.00

(Foreign Bill Rate) = (Domestic Bill Rate) × (Exchange Rate Multiplier [USD to CAD])

125.00 × 1.50 = 187.50

Note. The value of the exchange rate multiplier changes when the GL date has a different exchange rate than the date worked.

Text Case 2

These test cases are based on using the Recharge business unit.

Time Entry MBF Processing Options (P050002A), Recharge tab, processing option 2 (Business Unit Currency for Base Amount) = 1 (Recharge Business Unit)

Billing Rate / Markup Table

The billing rate and markup table is set up as described in this table:

Timecard Entry with Override Rate

This example shows a timecard with an override rate:

The Foreign Bill Rate is fixed, and the bill rate is calculated based on the Time Entry MBF Processing Options (P050002A) setting.

(Bill Rate) = (Foreign Bill Rate) × (Exchange Rate Multiplier [CAD to USD])

250.00 × 1.50 = 375.00

Note. The value of the exchange rate multiplier changes when the GL date has a different exchange rate than the date worked.

Timecard Entry with Percent

This example shows a timecard with a markup percentage:

(Foreign Bill Rate) = (Hourly Rate [PHRT]) + (Markup)

25 + 150 percent Markup = 62.50

(Bill Rate) = (Foreign Bill Rate) × (Exchange Rate Multiplier [CAD to USD])

62.50 × 1.50 = 93.75

Note. The value of the exchange rate multiplier changes when the GL date has a different exchange rate than the date worked.

Timecard Entry with Amount

This example shows a timecard with a markup amount:

(Foreign Bill Rate) = (Hourly Rate [PHRT]) + (Markup Amount)

25 + 10 = 125.00

(Bill Rate) = (Foreign Bill Rate) × (Exchange Rate Multiplier [CAD to USD])

125.00 × 1.1764706 = 147.06

Note. The value of the exchange rate multiplier changes when the GL date has a different exchange rate than the date worked.