Establishing Market Rates for EPM Currency Conversion

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

This topic discusses how to:

Define market rates.
Establish rate definitions.
Maintain exchange rates.
Load market rates.

Pages Used to Establish Market Rates for EPM Currency Conversion

Page Name	Definition Name	Navigation	Usage
Market Rate	RT_RATE_PNL	select EPM Foundation, then select EPM Setup, then select Common Definitions, then select Currencies and Rates, then select Market Rates, then select Market Rate	Define market rates.
Rate Definition	RT_RATE_DEF_SEC	Click the Rate Definition link on the Market Rates page	Establish rate definitions.
Exchange Rate Detail	EXCH_RT_DTL	Click the Exchange Rate Detail button on the Market Rates page. This page can also be accessed from other pages in the system.	Maintain exchange rates.

Market Rate Page

Use the Market Rate page (RT_RATE_PNL) to define market rates.

Navigation

select EPM Foundation, then select EPM Setup, then select Common Definitions, then select Currencies and Rates, then select Market Rates, then select Market Rate

Image: Market Rates page

This example illustrates the fields and controls on the Market Rates page. You can find definitions for the fields and controls later on this page.

Market rates can be loaded to the RT_RATE_TBL from any external source using the DataStage ETL tool. Use this page to verify that the market rates were loaded correctly.

Rate

The Rate field displays the visual rate or, in the case of triangulated exchange rates, the primary visual rate. The visual rate is typically the cross rate, but it can also be one of the other component rates of the triangle.

You can edit the rate for non triangulated rates and for triangulated rates if a quotation method has been defined for the currency pair and the Cross rate Allow Overridecheck box is selected on the Currency Quotation Method page. If an override is not allowed, you can update the exchange rate values to and from the reference currency on the Exchange Rate Detail page.

Changing a Triangulated Cross Rate

If you change a triangulated cross rate, the system recalculates one of the component rates. This can result in the cross rate being recalculated in a manner that is slightly different from the one that you entered. For example, you start with a triangulated rate of RM=6.80000000 and RD=1.25000000 for a cross rate of 5.44000000. If you change the cross rate to 5.43550000:

The system first recalculates RD to 1.25103486.
The system then recalculates the cross rate to 5.43550001 based on the first recalculation.

In rate maintenance, you must accept the recalculation. However, in a situation such as journal entry, a warning message enables you to override triangulation and to use the exact rate that you entered, which results in the rate being stored as RM equal to 5.43550000 and RD equal to 1.

You can edit the Rate field except when all of these conditions are true:

The rate is triangulated.
The primary visual rate is the cross rate.
The Allow Override check box on the Currency Quotation Method page is deselected for the exchange rate's quotation method.

Note: Typically, you do not maintain triangulated exchange rates online. Instead, maintain the rates of the from currency to the reference currency and the reference currency to the to currency, and then run the Cross rate Reciprocal SQR (EO9030.SQR) to define the triangulated exchange rates.

Reciprocal Currency Pairs

If a quotation method has been defined for the currency pair and if the Auto Reciprocate check box is selected, creating or maintaining a rate for a currency pair automatically creates or updates the rate of the reciprocal currency pair. For example, if you change the USD to GBP rate, the GBP to USD rate automatically is automatically updated. You can only automatically reciprocate currency pairs for which quotation methods have been defined.

If a rate definition does not already exist for the currency pair, one will be automatically created with the default values of 2.5 percent maximum variance and warning message processing.

Rate Definition Page

Use the Rate Definition page (RT_RATE_DEF_SEC) to establish rate definitions.

Navigation

Click the Rate Definition link on the Market Rates page.

Image: Market Rate - Rate Definition page

This example illustrates the fields and controls on the Market Rate - Rate Definition page. You can find definitions for the fields and controls later on this page.

Maximum Variance

You can modify the maximum variance—that is, the percentage of variance allowed when you maintain the market rate. If the change exceeds the tolerance, an error results. The default value is 2.50 (2.5 percent).

Error Type

You can modify the type of error that results when the tolerance defined in the Maximum Variance field is exceeded during data entry. Error type values are:

None: No error processing occurs. The new rate is used even though it exceeds the limit.

Stop : Processing halts. The system prevents you from saving the new rate.

Warning: A warning appears. You can ignore it and save the new rate.

Note: The results of changing the rate definition do not take effect until you save the Market Rates page.

Click OK to return to the Market Rates page.

Exchange Rate Detail Page

Use the Exchange Rate Detail page (EXCH_RT_DTL) to maintain exchange rates.

Navigation

Click the Exchange Rate Detail button on the Market Rates page. This page can also be accessed from other pages in the system.

Image: Market Rate - Exchange Rate Detail page

This example illustrates the fields and controls on the Market Rate - Exchange Rate Detail page. You can find definitions for the fields and controls later on this page.

The read-only fields include:

Rate Quotation Basis

Displays the quotation basis for the exchange rate as it is defined on the Currency Quotation Method page. If no quotation method is defined, the quotation basis is Direct.

Quote Units

Displays the quote units for the exchange rate as defined on the Currency Quotation Method page. If no quotation method is defined, the quote unit is 1.

Triangulate

Displays the triangulated setting for the exchange rate as it is defined on the Currency Quotation Method page. If no quotation method is defined, the triangulated setting is N.

Reference Currency

Displays triangulated exchange rates only, and shows the reference currency used in the triangulated exchange.

Current Quote

Displays the current exchange rate used to convert the from currency to the to currency. A direct, non-triangulated rate shows quote units (or 1) on the left side of the equal sign and the visual rate on the right. For example: 1 USD = 1.40000000 CAD.

A triangulated rate displays two component rates of the triangle: the rate for converting the from currency to the reference currency, and the rate for converting the reference currency to the to currency.

Historic Quote

Displays a quote to indicate the quotation method originally used by a historic exchange rate if the system determines that the original quotation method of the historic rate differs from the current quotation method. This field displays the following information:

A quote, if the historic rate has converted the from currency to the to currency directly using a calculated reciprocal rate, but the current quotation method for the currency pair is now indirect.
A quote, if the historic quote method were non-triangulated and the current quote method is triangulated.
Not Applicable, if the system does not determine that the historic and current quote methods are different.

Exchange Rate

Displays a single visual rate for non-triangulated exchange rates or displays all three component visual rates for triangulated exchange rates. The cross rate for triangulated exchange rates is editable only if the Allow Override check box is selected in the exchange rate's quotation method definition.