Setting Up Market Rates for EPM Currency Conversion

The PeopleSoft approach to market rates and currency conversion is driven by the need to accommodate business practices related to the European Common Currency (euro). In addition to currency exchange rates, PeopleSoft supports the many different types of global market rates, such as interest rates, stock exchange indexes, and economic indicators.

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 rate indexes.
Define market rate types.
Define market rate tolerances.

Pages Used to Manage Market Rates

Page Name	Definition Name	Navigation	Usage
Market Rate Index	RT_INDEX_TBL	select EPM Foundation, then select EPM Setup, then select Common Definitions, then select Currencies and Rates, then select Market Rate Index	Describe the indices for which you track rates. Typical market rate indexes include LIBOR, Bloomberg foreign exchange, and Reuters foreign exchange. An index categorizes the various market rates that you track.
Market Rate Type	RT_TYPE_TBL	select EPM Foundation, then select EPM Setup, then select Common Definitions, then select Currencies and Rates, then select Market Rate Type	Define market rate types. Rate types include commercial, floating, average, and historical.
Market Rate Definition	RT_RATE_DEF_TBL	select EPM Foundation, then select EPM Setup, then select Common Definitions, then select Currencies and Rates, then select Market Rate Definition, then select	Define tolerance limits for rates and determine what action should occur if a new rate occurs outside of the tolerance limit. The fields on this page differ according to the rate category of the market rate index.

Defining Market Rate Indexes

Use the Market Rate Index page (RT_INDEX_TBL) to describe the indices for which you track rates.

Typical market rate indexes include LIBOR, Bloomberg foreign exchange, and Reuters foreign exchange. An index categorizes the various market rates that you track.

Navigation

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

Image: Market Rate Index page

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

Rate Category

Select a Rate Category from the list: Options include: Commodity Price, Economic Indicator, Exchange Rate, Futures Price, Interest Rate, Other, Stock Exchange, Index, or Stock Price.

Default Exchange Rate Index

If you are entering exchange rate indexes, select this check box to indicate which index should be used to retrieve currency exchange rates. You can specify only one index code as the default.

Defining Market Rate Types

Use the Market Rate Type page (RT_TYPE_TBL) to define market rate types.

Rate types include commercial, floating, average, and historical.

Navigation

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

Enter a description and short description for each market rate type that you use.

Defining Market Rate Tolerances

Use the Market Rate Definition page (RT_RATE_DEF_TBL) to define tolerance limits for rates and determine what action should occur if a new rate occurs outside of the tolerance limit.

The fields on this page differ according to the rate category of the market rate index.

Navigation

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

Image: Market Rate Definition page

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

The information that appears on this page depends on the type of index that you select. For example, if you select an index with interest rates, interest rates appear on this page.

Market rate definitions specify the valid term, currency, and other appropriate field combinations for market rates. For example, if you have a market rate definition for an exchange rate with a term of 30, a from currency of EUR, and a to currency of USD, you can enter a rate using this combination in the market rate table. If you do not have a market rate definition, the system creates one for you using the default values.

From Currency Code

Enter the from currency code.

Refresh

Click the Refresh button to limit the display to the specified from currency code.

Term

Enter the desired term (expressed in days). A zero term indicates a spot rate.

From Currency

Enter the appropriate from currency. This value is used with the to currency value as part of an exchange rate pair. When you use triangulation, include a definition for each of the currency pairs involved in the triangulation.

To Currency

Enter the appropriate to currency. This value is used with the from currency value as part of an exchange rate pair.

Maximum Variance

Indicate the percentage of variance that is allowed when the user maintains the market rate. The system generates an error message if the change exceeds the tolerance. The default value is 2.50 (2.5 percent).

Error Type

Enter the type of error processing that should occur if the maximum variance is exceeded. Values are:

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

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

Warning: Default value. A warning appears; you can ignore it and save the new rate.