This chapter contains these topics:
Section 43.6, "Setup of Billing Rate and Markup Tables for Multi-currency,"
Section 43.9, "Multi-currency Processing of Workfile Generation,"
Section 43.10, "Multi-currency Processing of Workfile Revisions,"
Section 43.11, "Multi-currency Processing of Invoice Generation,"
Section 43.12, "Multi-currency Processing of Invoice Revisions,"
Section 43.13, "Invoice Revisions for Time and Material Billing Lines,"
Section 43.14, "Multi-currency Processing of Invoice Journal Generation,"
Section 43.15, "Multi-currency Processing of Create A/R and G/L Entries,"
Section 43.16, "Multi-currency Processing of General Ledger Post Reports,"
Section 43.17, "Multi-currency Processing of Invoice Voids."
Understanding multi-currency is vital to establishing a global customer network. The following concepts help you understand how the billing system processes multi-currency transactions.
In the billing system, you must select either foreign or domestic mode. The mode manages how amounts are calculated and stored within the billing system. The mode is a global control in the constants and, as with all constants, JD Edwards World recommends that you not change it after you set it up. You can override the global setup in the G/L Offset and Retainage table for Service Billing or in the Contract Master table for Contract Billing. In Service Billing, if the constant is set to foreign mode and you need to manage a particular job in the domestic currency, you can set up the G/L Offset and Retainage table for that job in the domestic mode. In Contract Billing, if the constant is set to foreign mode but you need to manage a particular contract in the domestic currency, you can set up the individual Contract Master in the domestic mode.
When the Multi-currency Conversion option in the General Account Constants has a value of Y or Z and a transaction has two currencies, the system calculates the amounts and stores both currencies within the billing system. The domestic amount fields always display amounts in the currency of the company to which the job belongs and the foreign amount fields always display amounts in the customer currency, unless you override these settings. You must define one of these currencies as fixed, based on the currency mode that you specified in the billing constants. The fixed currency becomes the control currency for the workfile transactions and is maintained by the system. While the fixed amounts remain static, fluctuations in currency can affect the unfixed amounts.
For invoicing, your company must decide which currency you use to manage billing relationships with customers. For example, your company is in the United States and uses the US dollar (USD) as your domestic currency. Your sales representative signs a new project in Canada, where the customer wants to receive all invoices in Canadian dollars (CAD). Regardless of fluctuating exchange rates, the customer has agreed on rates for the particular services in CAD. In this particular example, you are operate your billing system in a foreign mode (the foreign amounts are fixed). Conversely, if you negotiate most of your deals in USD, regardless of your customers' currencies, you set your billing system to the domestic mode (the domestic amounts are fixed).
In a multi-currency environment, you can create transactions in different currencies. Regardless of the currency of the originating entry, the Workfile Generation program (R48120) and the G/L Transaction Selection program (P48124) retrieve the cost amount from the AA (Actual Amount) ledger of the Account Ledger table (F0911) and place this value in the domestic cost field of the workfile.
In contrast, the system retrieves JD Edwards World payroll entries from the Employee Transaction History table (F0618). The employee is paid in the currency of the home business unit. This currency is compared to the currencies of the job or work order for which you are billing and to your customer's currency.
For example, if the currency of the job is USD, the currency of the customer is French francs (FRF), and the currency of the home business unit is USD, then the system uses the cost amount (USD) from table F0618 as the domestic cost amount, and the foreign amount is converted. Conversely, if the home business unit is FRF, then the system uses the cost amount (FRF) from table F0618 as the foreign cost amount, and the domestic amount is converted. If the home business unit currency is equal to Belgian francs (BEF), then the cost is first converted to USD and is then used as the domestic cost amount and then the foreign amount is converted.
After the system updates the cost amount in the Billing Detail Workfile table (F4812), the system calculates the unfixed cost amount using the exchange rate table for the date basis that you specify in the billing constants. The program then retrieves the markup information for the record in the fixed currency, as defined in the billing constants. Markup information is retrieved only for the fixed currency. The fixed cost amount plus the markup amount becomes the taxable amount of the transaction. The unfixed taxable amount is calculated using the exchange rate on the fixed taxable amount. Tax and discount rates are calculated independently for each of the currencies.
Assuming a non-payroll entry, the following equations describe the process by which the system calculates the domestic and foreign amounts. (Calculations are not necessarily performed in the exact order in which they appear.)
The following equations demonstrate how the system calculates various amounts in domestic mode:
Domestic Cost Amount + Markup Amount = Domestic Taxable Amount
Domestic Taxable Amount x Tax Rate = Domestic Tax Amount
Domestic Taxable Amount + Domestic Tax Amount = Total Domestic Invoice Amount
Domestic Taxable Amount x Discount Rate = Domestic Discount Amount
Domestic Cost Amount x Exchange Rate = Foreign Cost Amount
Domestic Taxable Amount x Exchange Rate = Foreign Taxable Amount
Foreign Taxable Amount x Tax Rate = Foreign Tax Amount
Foreign Taxable Amount + Foreign Tax Amount = Total Foreign Invoice Amount
Foreign Taxable Amount x Discount Rate = Foreign Discount Amount
The following equations demonstrate how the system calculates various amounts in foreign mode:
Domestic Cost Amount x Exchange Rate = Foreign Cost Amount
Foreign Cost Amount + Markup Amount = Foreign Taxable Amount
Foreign Taxable Amount x Tax Rate = Foreign Tax Amount
Foreign Taxable Amount + Foreign Tax Amount = Total Foreign Invoice Amount
Foreign Taxable Amount x Discount Rate = Foreign Discount Amount
Foreign Taxable Amount x Exchange Rate = Domestic Taxable Amount
Domestic Taxable Amount x Tax Rate = Domestic Tax Amount
Domestic Taxable Amount + Domestic Tax Amount = Total Domestic Invoice Amount
Domestic Taxable Amount x Discount Rate = Domestic Discount Amount
Invoice Amount Calculations (Domestic Mode)
The following equations demonstrate how the system calculates invoice amounts in domestic mode. All fields are from the Billing Detail Workfile table (F4812):
Cost (AA) + Markup Amount (ADCI) = Taxable Amount (ITXA)
Taxable Amount (ITXA) x Tax Rate = Tax Amount (ITAM)
Taxable Amount (ITXA) + Tax Amount (ITAM) = Total Amount (ITOL)
Cost (AA) x Exchange Rate = Foreign Amount (AA2)
Taxable Amount (ITXA) x Exchange Rate = Foreign Taxable Amount (CITA)
Foreign Taxable Amount (CITA) x Tax Rate = Foreign Tax Amount (CITX)
Foreign Taxable Amount (CITA) + Foreign Tax Amount (CITX) = Foreign Total Amount (CITL)
Taxable Amount (ITXA) x Discount Rate = Discount Amount (IDSC)
Foreign Taxable Amount (CITA) x Discount Rate = Foreign Discount Amount (CIDS)
Cost (AA) / Units = Unit Price (PRIC)
Foreign Amount (AA2) / Units = Foreign Unit Price (PRIF)
Note:
These equations are based on the assumption that the home business unit of the payroll transaction has the same currency as the job.Invoice Amount Calculations (Foreign Mode)
The following equations demonstrate how the system calculates invoice amounts in foreign mode. All fields are from the Billing Detail Workfile table (F4812):
Cost (AA) x Exchange Rate = Foreign Amount (AA2)
Foreign Amount (AA2) + Markup Amount (ADCI) = Foreign Taxable Amount (CITA)
Foreign Taxable Amount (CITA) x Exchange Rate = Taxable Amount (ITXA)
Taxable Amount (ITXA) x Tax Rate = Tax Amount (ITAM)
Taxable Amount (ITXA) + Tax Amount (ITAM) = Total Amount (ITOL)
Foreign Taxable Amount (CITA) x Tax Rate = Foreign Tax Amount (CITX)
Foreign Taxable Amount (CITA) + Foreign Tax Amount (CITA) = Foreign Total Amount (CITL)
Taxable Amount (ITXA) x Discount Rate = Discount Amount (IDSC)
Foreign Taxable Amount (CITA) x Discount Rate = Foreign Discount Amount (CIDS)
Cost (AA) / Units = Unit Price (PRIC)
Foreign Amount (AA2) / Units = Foreign Unit Price (PRIF)
See Also:
For more information about setting up your system for multi-currency, see Chapter 43, "Multi-Currency Setup."
Verify that the following two controls are set correctly in the System Constants:
| Control | Description |
|---|---|
| Exchange Rate Date Basis | This date controls which exchange rate the system applies to the workfile records when you run the Workfile Generation (P48120) and Workfile Re-extension (P481202) programs. |
| Foreign | This option controls which currency is fixed during the billing process. When you turn on this option, then the customer currency is the fixed currency and the business unit or company currency is considered unfixed. In this case, the system calculates the markups in the customer currency and restates the domestic amount based on the calculated foreign amounts.
When you turn off this option, the domestic or company currency is fixed for the billing process. In this case, the system calculates the markups on the company currency and restates the foreign amount based on the calculated domestic amounts. This field also controls the supplied mode to the Workfile Revisions program (P4812). |
Verify that the following control is set correctly in the Billing Rate / Markup Table program (P48096):
| Control | Description |
|---|---|
| Curr Code | The currency code controls the decimal display on the form and is used as part of the key when you run the Workfile Generation (P48120) and Workfile Re-extension (P481202) programs. The Curr Code field appears only when the Multi-Currency Conversion option on the General Account Constants form has a value of Y or Z. |
The master files supply the currency code from for the following key types, based on the following tables, but you can override it when you add a new markup table:
| Topic | Description |
|---|---|
| 1-Work Order | Work Order Master File (F4801) |
| 3-Contract | Contract Master (F5201) |
| 4-Parent Contract | Contract Master (F5201) |
| 5-Customer | Customer Master (F0301) |
| 6-Business Unit (Job) | Business Unit Master (F0006) |
| 8-Company | Company Constants (F0010) |
When the Multi-Currency Conversion option on the General Account Constants form has a value of Y or Z, you need to enter the currency code for the following key types:
2-Work Order Class (WR07)
7-Job Class (RP11)
9-Default
Example of Billing Rate and Markup Table Processing
The markup table that the system selects when you run the Workfile Generation (P48120) and Workfile Re-extension (P481202) programs is determined by the mode that you set up in the following programs, as well as by the key fields of the billing rate and markup table:
System Constants (P48091)
G/L Offset and Retainage Table (P48128) (for Service Billing)
Contract Master Revisions (P5201) (for Contract Billing)
Since Currency is a key field, they system uses it to search for a match between the cost transaction and the billing rate and markup table. The following example demonstrates the process:
Business unit 1234 belongs to company 00062 with a currency code of BEF
Customer number 3333 is set up with a currency of FRF
Customer number 3333 is properly attached to business unit 1234 as the owner
A transaction was posted to the billable account 1234.1350.02200 for 300 BEF
The following tables display the two billing rate and markup set up:
| Topic | Description |
|---|---|
| Generation Type | 1 (invoice processing) |
| Key Type | 5 (customer) |
| Table Key | 3333 |
| Currency Code | FRF |
| Date Range | 01Jan2017 - 31Dec2017 |
| Object Account Range | 1340 - 1399 |
| Markup Percentage | 150 |
| Topic | Description |
|---|---|
| Generation Type | 1 (invoice processing) |
| Key Type | 6 (job) |
| Table Key | 1234 |
| Currency Code | BEF |
| Date Range | 01Jan2017 - 31Dec2017 |
| Object Account Range | 1340 - 1399 |
| Markup Percentage | 150 |
When the Multi-Currency Conversion option on the General Account Constants form has a value of N and does not have currency codes entered, use Table 1 as the markup because the currency code is not part of the search key. Therefore, key type 5 is found first in the hierarchical ordering of the remaining major keys.
When the Multi-Currency Conversion option on the General Account Constants form has a value of Y or Z and the system constants are set to Foreign mode, then the Workfile
Generation program calculates the billable amount of the transaction using Table 1, which is set up in the foreign, or customer, currency.
When the system constants are set to domestic mode, the Workfile Generation program calculates the billable amount of the transaction using Table 2, which is set up in the domestic, or company, currency.
For Service Billing, when the currency for the table does not match the fixed currency defined by the system constants or the currency mode is overridden in G/L Offset and Retainage Table program, the system uses the default markup percentage that you set up in the constants.
For Contract Billing, when the currency for the table does not match the fixed currency that you set up in the system constants or in the Contract Master Revisions program, the system uses the default markup percentage that you set up in the constants.
Note:
When the Multi-Currency Conversion option on the General Account Constants form has a value of N, the Currency Code field does not appear on the Cost Plus Markup Table. If you add tables, they have blank values in the Currency Code field. If you subsequently change the Multi-Currency Conversion option to a value of Y or Z and enter a transaction that has a valid currency code attached to it, the Workfile Generation program does not find a valid match to a billing rate and markup table with a blank value.The opposite is also true. When you create a billing rate and markup table with a valid currency code while the Multi-Currency Conversion option is Y or Z and you change the option to N before entering your transactions, your Transaction Currency field is blank and your markup tables are not blank. Again, the system does not find a match. For this reason, you must not alternate Multi-Currency Conversion values.
In the Component Table program (P4860), the currency code must match the currency code of the billing rate and markup table to which it is attached. The currency code on the component table controls the decimal display on this form and the system uses it as part of the key when the Workfile Generation (P48120) and Workfile Re-extension (P481202) programs process this table. The Currency Code field appears only when the Multi-Currency Conversion option on the General Account Constants form has a value of Y or Z.
When you add a new contract, the base currency comes from the associated job. The billing currency comes from the customer record. The currency mode comes from the billing constants.
You can change the billing currency and mode until you add a change order and billing line. After you enter the billing line, you cannot change the currency code or mode. The system retrieves the exchange rate for the Contract Master File table (F5201) based on the rate for the date associated with the original change order of the contract. The system uses the billing currency that you enter on the Contract Master Revisions form to calculate all of the foreign amounts of your workfile transactions.
After you set up the contract master record, you must set up change orders and billing lines. After you add the first billing line, the system updates the currency exchange rate on the Contract Master and Billing Line tables. You can enter the schedule of values only in fixed mode. The system uses the derived exchange rate to calculate the alternate mode.
Note:
The system derives the exchange rate from the daily exchange rate tables based on the change date of the original change order. The system does not update the exchange rate when you enter change orders with new dates and rates. The exchange rate, once derived, remains constant throughout the life of the contract.The value in the Multi-Currency Conversion option on the General Account Constants form does not affect the Workfile Generation program (P48120). Likewise, when you choose G/L Select from the Workfile Revisions program (P4812), you do not have to make any setup or data selection changes for Multi-currency processing. Changes to the Multi-currency processing are determined by the Billing Constants program (P48091), the billing rate and markup tables, and the G/L Offset and Retainage Tables (Service Billing) or the Contract Master (Contract Billing)
In the Workfile Revisions program (P4812), when the Multi-Currency Conversion option on the General Account Constants form has a value of Y or Z, you have both the domestic and foreign amounts available for inspection on the initial detail display, as shown in the following example:
When the Multi-Currency Conversion option on the General Account Constants form has a value of N, you see only the domestic amounts.
Note:
When the job and customer have the same currency code, regardless of how you set up your mode in the billing constants, the mode is considered domestic throughout the billing process. On the Work With Workfile form, you see only the domestic values in the detail area; the foreign amounts are blank.When you select a transaction from the Work With Workfile form, the Job/Amount Revisions form supplies the mode of the record that was updated, based on the billing constants, or the mode in a G/L offset and retainage table for Service Billing or in the Contract Master Revisions program (P5201) for Contract Billing. You can then turn on the Foreign option to see the alternate mode (foreign or domestic). Notice that you see only the markup amounts of the fixed currency in the Mark Up % field. Amount fields are changeable only in the mode of the transaction. Cost fields cannot be updated in either currency.
In the non-fixed mode, no markup amounts appear and the system disables all of the amount fields for any changes.
In the Invoice Generation program for Service Billing (R48121) or the Invoice Generation program for Contract Billing (R52121), ensure that the following processing option is set correctly:
| Topic | Description |
|---|---|
| Exchange Rate Date Basis | This processing option specifies whether you want to find the exchange rate table based on the date of the invoice or on the G/L Date, as identified in the processing option. If you choose to post all transactions to the last day of the month, but you change your exchange rate tables daily, you probably want to select your exchange rate tables based on the invoice date.
Conversely, if you want all currency transactions calculated, based on the date that you post, you specify to retrieve the exchange rate based on G/L date. The Exchange Rate Date Basis processing option is required whether you create the invoices using the batch or interactive method. If you do not make an initial selection, the default is 1 or Invoice Date. The exchange rate used for the Invoice Generation program is updated in the Invoice Exchange Rate field of the Billing Detail Workfile table (F4812). |
The report that the Invoice Generation program prints reflects the invoice amount in the currency of the company or in the domestic currency.
The Gross amount that appears on Invoice Entry Review (P48222) is always in the domestic currency. However, you see both amounts in their respective currencies by changing the Mode.
You access the billing details for time and material transactions included in the invoice on the Amount/Units Information window (P4812W1). Review the following fields:
Original Exchange Rate
The system uses this rate during workfile generation or the most recent re-extension, if applicable.
Invoice Exchange Rate
The system uses this rate for invoice generation.
During invoice generation, if the exchange rate has changed, the records included in the invoice first have their non-fixed amounts copied to historical amount fields. Then the system recalculates the non-fixed amounts using the new exchange rate selected during invoice generation. These non-fixed amounts are accumulated for the Invoice Entry Review form. When you access an invoice to audit the individual transactions, you see the recalculated amounts based on the invoice exchange rate. Original amounts are stored in historical amount fields of the workfile so that if you delete an invoice, the current non-fixed amounts are updated from the amounts copied to historical amount fields.
As with the Workfile Revisions after workfile generation, you can change only the amounts or markup in the mode in which the transaction was created.
The reports generated (including the Invoice Register) when you run the Invoice Generation program (R48121) are printed in domestic amounts, regardless of the currency mode.
For this process, you receive the same reports that you received when you ran the Invoice Journal Generation program (P48131). These reports are created in the domestic currency, regardless of the mode that you have set up for your currency processing. When you access the batch from the Invoice Journal Review program (P0011), the gross amounts in the domestic currency and the currency amount reflect the foreign currency of the invoice.
When you post the transactions, the system posts the domestic amounts to the AA ledger, creates the foreign amounts, and then posts to the CA ledger. Both ledgers must balance before the batch posts.
After you create the invoice, you can void the invoice if it does not display recorded payments. When you void the invoice, the system retrieves the corresponding transactions in the Billing Detail Workfile table (F4812) from history with the amounts that were calculated using the currency exchange rate of the last re-extension or of the original workfile generation, whichever came later.