This chapter covers the following topics:
Oracle Projects gives you the option to bill in a global environment when the multi-currency billing is enabled for an operating unit and for a project. When multi-currency billing is enabled, you can:
Enter agreements, bill rates, and events in any currency regardless of the project functional currency
Designate the project functional currency, project currency, or funding currency as the invoice processing currency for a project
Designate the project functional currency and the invoice transaction currency as the revenue transaction currency
Define currency conversion attributes for converting revenue and invoicing amounts to the project currency, project functional currency, and funding currency
Define currency conversion attributes for converting funding amounts to the project functional currency, and the project currency
Define a default invoice currency for a project customer that is different from the project functional currency and assign conversion attributes for deriving revenue in this currency
The multi-currency billing option can be set both at the operating unit level and at the project level. To enter agreements and rate schedules in any currency for a project, you must enable the multi-currency billing functionality for the operating unit. To enter events in any currency for a project, you can enable the functionality at the project level only. This value defaults from the project template You can override the default value for an individual project template or project.
Related Topics
Currency, Oracle Projects Fundamentals
Deriving Revenue in Foreign Currency.
Billing Implementation Options, Oracle Projects Implementation Guide
The system uses currency conversion attributes to convert revenue and billing amounts to the project functional currency, project currency, and funding currency, and to convert the funding amounts to the project functional currency and project currency.
By default, the system uses the conversion attribute information defined for the project to which the transaction is assigned to calculate the project currency amounts.
Note: When you enable Invoice by Bill Transaction Currency option, or when the invoice transaction currency is the same as the project functional currency, the conversion of invoice amounts to invoice transaction currency ignores the conversion attributes defined for a customer. When you enable Project Functional Currency and Invoice Transaction Currency as your revenue transaction currency, the conversion of revenue to invoice transaction currency uses the invoice transaction currency conversion attributes that you assign to a customer. For more information, see: Deriving Revenue in Foreign Currency.
You enable the multi-currency billing functionality and define the currency conversion attributes for a project in the Billing tabbed region of the Currencies window accessed via Project Options window. See: Currency Conversion Attributes, Oracle Projects Fundamentals. You use these settings when you need the following capabilities:
Assign a project or task a rate schedule in a currency that is different from the project functional currency
Create event transactions for a project in a currency that is different from the project functional currency
Enter an agreement in a currency that is different from the project functional currency and fund the project with that agreement
Define a project currency that is different from the project functional currency
Define a default invoice transaction currency for a project customer that is different from the project functional currency
The currency conversion attributes are used to convert expenditure items, manually entered events, and automatically created events from the billing transaction currency during revenue and invoice processing. They are also used to convert funding amounts from the funding currency to the project functional currency and the project currency.
The billing transaction currency for work based billing and event based billing are as follows:
For work-based billing, the billing transaction currency is:
The bill transaction currency for cost based revenue if billing amounts are based on cost and use markups (bill rate schedules) or multipliers (burden schedules)
The bill rate schedule currency if billing amounts are based on bill rate schedules and no project or task rate override is entered
The user entered bill rate currency from employee, job, or non-labor rate overrides if billing amounts are based on bill rate schedules and project or task overrides are specified.
For event-based billing events, the billing transaction currency is:
The user-entered event transaction currency for manually entered events.
The project functional currency for automatic revenue and invoice events that are created when the Cost/Cost billing method is used.
The following table summarizes the transaction currencies for expenditures and events:
| Type of Transaction | Transaction Currency |
|---|---|
| Events (manual and automatic) | Event transaction currency |
| Expenditures with markups or burden multipliers (multi-currency billing enabled) | Bill transaction currency for cost based transactions. |
| Expenditures with bill rates | Rate schedule currency |
| Expenditures with bill rate overrides | Override currency |
| Expenditures with labor billing extension that calculates the amount | Billing transaction currency provided by the extension |
When Oracle Projects calculates revenue, it calculates revenue and billing amounts for expenditure items in the billing transaction currency.
The following table illustrates how currency, rates, and amounts are determined during revenue generation:
| Type of Transaction | Billing Transaction Currency = | Billing Transaction Bill Rate = | Billing Transaction Revenue, Raw Revenue, or Billing Amount = |
|---|---|---|---|
| Expenditure items that use bill rates | Rate schedule currency | Billing schedule rate | Billing transaction bill rate*quantity |
| Expenditure items that use bill rate overrides | Currency of the bill rate override | Rate override | Billing Transaction bill rate*quantity |
| Expenditures with markups (multi-currency billing enabled) | Bill transaction currency for cost-based revenue | Raw revenue or bill amount/quantity | Markup applied on the bill transaction currency for cost based revenue |
| Expenditures with burden multipliers (multi-currency billing enabled) | Bill transaction currency for cost based revenue | Raw revenue or bill amount/quantity | Burden multiplier applied on bill transaction currency for cost based revenue |
| Events | Event transaction currency | N/A | Event revenue or bill amount in the event transaction currency |
Note: When multi-currency billing is not enabled, the billing transaction currency for an expenditure item that uses markups or burden schedule is the same as the project functional currency, although the expenditure item transaction currency can be a currency other than the project functional currency. The markup or burden multiplier is applied to the expenditure cost in the project functional currency.