Calculating Currency Rates for EPM Currency Conversion

PeopleSoft-delivered ETL jobs move currency rate data from your source transaction system to EPM target warehouse tables. You need only use the currency rate PIA pages to redefine or modify your existing currency rate data.

This topic provide an overview of currency calculations and discusses how to:

Calculate cross rates and reciprocal rates.
Run the Currency Exchange Calculator tool.

Pages Used to Calculate Currency Rates

Page Name	Definition Name	Navigation	Usage
Cross/Reciprocal Rate Calc (calculator)	RUN_FIN9030	select EPM Foundation, then select EPM Setup, then select Common Definitions, then select Currencies and Rates, then select Cross/Reciprocal Rate Calc, then select Cross/Reciprocal Rate Calculator, then select Cross/Reciprocal Rate Parameters	Calculate cross rates and reciprocal rates by defining parameters to run the FIN9030 SQR report.
Currency Exchange Calculator	CURRENCY_EXCHNG_PN	select EPM Foundation, then select EPM Setup, then select Common Definitions, then select Currencies and Rates, then select Currency Exchange Calculator	Run the Currency Exchange Calculator to calculate the currency exchange between currencies.

Understanding Currency Calculations

PeopleSoft calculates currency rates for cross rates, triangulated rates, and reciprocal rates.

EPM utilizes two tools for currency calculations:

The Currency Exchange Calculator tool quickly performs ad hoc currency conversion using the exchange rates that are stored on the market rates table.
The Cross/Reciprocal Rate Calculator calculates exchange rates and updates the market rates table.

It performs three functions by generating the rates shown in this table:

Cross rates for nontriangulated currency pairs

For example, an organization subscribes to a rate service that provides all rates respective to the USD. Starting with a USD to Canadian dollar rate and a USD to Mexican peso rate, the system can calculate a new Canadian dollar to Mexican peso cross rate.

Triangulated rates for triangulated currency pairs

For example, the euro to NEW (a fictitious country that has just joined the euro and is subject to triangulation) fixed rate has been established on the market rate table and a new euro to USD rate has just been entered. Using this information, the process can create a new USD to NEW triangulated rate. The difference between triangulated rates and cross rates affects how the data is stored in the database. When calculating a cross rate, you actually create a new rate. When calculating a triangulated rate, the individual components of the source rates are stored on the target.

Reciprocal rates for those currency pairs that are not automatically reciprocated

For example, using a USD to CAD rate as the source, the process calculates the CAD to USD reciprocal. If quote methods are in place, the visual rate remains the same and a difference exists in how the data is stored in the database (RATE_MULT and RATE_DIV are inverse). If quote methods are not used, the process calculates an inverse rate, meaning that the visual rates differ.

Currency Exchange Calculator Page

Use the Currency Exchange Calculator page (CURRENCY_EXCHNG_PN) to run the Currency Exchange Calculator to calculate the currency exchange between currencies.

Navigation

select EPM Foundation, then select EPM Setup, then select Common Definitions, then select Currencies and Rates, then select Currency Exchange Calculator

Image: Currency Exchange Calculator page

This example illustrates the fields and controls on the Currency Exchange Calculator page. You can find definitions for the fields and controls later on this page.

This tool enables you to enter a rate or an amount in a currency other than the base currency, or to compute an exchange using an alternative rate type.

From Amount

Enter a from amount. The currency exchange is based on the from amount that you enter and the current exchange rate set up on the Market Rates page.

From Currency Code

Select the currency code from which to calculate the exchange amount.

To Currency Code

Select the currency code to which to calculate the exchange amount.

Exchange Rate Type

Select the type of exchange rate to use for this calculation.

Converted Amount

Displays the converted amount. The system automatically calculates this amount when you save the page.

Note: Do not decrease the number of decimals after you have created transactions for that currency; the system will not properly round the previous rounded amount fields with the new precision.