Setting Up Currency Controls

To set up currency controls, use the Ledgers For A Unit component (BUS_UNIT_LED) and the General Ledger Definition component (BUS_UNIT_TBL_GL).

This section provides an overview and discusses how to:

Establish business unit controls.
Establish ledger controls.
Establish rounding adjustment controls.
Establish source controls.

Pages Used to Set Up Currency Controls

Page Name	Definition Name	Navigation	Usage
General Ledger - Definition	BUS_UNIT_TBL_GL1	select Set Up Financials/Supply Chain, then select Business Unit Related, then select General Ledger, then select General Ledger Definition	Establish the business unit base currency and foreign currency options for each business unit.
General Ledger - Currency Options	BUS_UNIT_TBL_GL3	select Set Up Financials/Supply Chain, then select Business Unit Related, then select General Ledger, then select General Ledger Definition, then select Currency Options tab	Specify currency options at the business unit level for currency balancing; base currency adjustment, and the number of foreign currencies for each journal.
Ledgers For A Unit - Currency Options	BUSINESS_UNIT_LED3	select Set Up Financials/Supply Chain, then select Business Unit Related, then select General Ledger, then select Ledgers For A Unit, then select Currency Options tab	Indicate how you want to record adjusting entries for out-of-balance conditions that are caused by foreign currency rounding.
Rounding Adjustment ChartFields	BUL_JE_RA_CFS_SEC	Click the Rounding Adjust ChartFields link on the Ledgers For A Unit − Currency Options page.	Specify ChartField options when there is an unbalanced condition between the debit and credit rows due solely to rounding on conversion from foreign amount to base amount.

Understanding Currency Controls

Currency controls include the base currency for each business unit, balancing options for the currency, adjustment options that are required due to rounding on currency conversions, and the number of foreign currencies for each journal.

In PeopleSoft applications, you can specify currency controls at three levels: business unit, ledger group, or journal source. Controls that are defined for a ledger group override those defined for a business unit, and controls selected for a source override both a ledger group and a business unit.

Also, each ledger that you add to a ledger group, you can choose to inherit the ledger's base currency from the business unit or the define the ledger's base currency manually.

General Ledger - Definition Page

Use the General Ledger - Definition page (BUS_UNIT_TBL_GL1) to establish the business unit base currency and foreign currency options for each business unit.

Navigation

select Set Up Financials/Supply Chain, then select Business Unit Related, then select General Ledger, then select General Ledger Definition

Base Currency

Select the base currency for the business unit.

Ledgers For A Unit - Currency Options Page

Use the Ledgers For A Unit - Currency Options page (BUSINESS_UNIT_LED3) to indicate how you want to record adjusting entries for out-of-balance conditions that are caused by foreign currency rounding.

Navigation

select Set Up Financials/Supply Chain, then select Business Unit Related, then select General Ledger, then select Ledgers For A Unit, then select Currency Options tab

Adjust Last Journal Line

Select this option to correct out-of-balance conditions caused by foreign currency rounding. Selecting this option applies any necessary adjusting entries to the last journal line carrying that currency.

Note: When a ledger group contains multiple ledgers with a secondary ledger or ledgers that have the same base currency as the primary ledger and if journals contain multiple foreign currency transactions, the following will apply.

If you choose to use different rate types for currency conversion in primary and secondary ledgers having the same base currency and in a single ledger group or if imbalances occur because of rounding and truncation of foreign currency conversions, when you have journals with multiple currencies posting to the ledger group, you cannot use Add Adjusting Journal Line to handle the balancing of journals. If you attempt to do so, the journal edit process errors out the journal and issues an error message.

For example, assume you have a primary ledger and a secondary ledger in the same ledger group that use GBP as the base currency, you have KLS selected and require that journal entries balance by base currency. If you then generate a journal in various currencies and a journal edit returns the result that the base amount of the secondary ledger in GBP is out of balance, you must select Adjust Last Journal Line for that journal to be balanced by the system.

The system cannot use Add Adjusting Journal Line under the circumstances described in the example. Under these conditions, when you must use Adjust Last Journal Line, the system selects the last line in a balancing set for balance by base currency where the transaction currency is not equal to the base currency to add or subtract the amount necessary to balance the base currency of the secondary ledger.

The last line is not necessarily the last line of the journal. The system groups all lines in balancing sets when balancing the journal. The journal edit selects the last line for a balancing set where the transaction currency does not equal the base currency and calculates the amount necessary to balance the set. Each set must balance for the total journal to be in balance.

Add Adjusting Journal Line

Select this option to add a new adjustment line for each adjusting entry that is necessary to correct out-of-balance conditions caused by foreign currency rounding.

Note: Either base amounts or foreign amounts must be balanced. To insure that the rounding adjustment is performed correctly, select Add Adjusting Journal Line when using the balance by base currency option.

Rounding Adjustment ChartFields Page

Use the Rounding Adjustment ChartFields page (BUL_JE_RA_CFS_SEC) to specify ChartField options when there is an unbalanced condition between the debit and credit rows due solely to rounding on conversion from foreign amount to base amount.

Navigation

Click the Rounding Adjust ChartFields link on the Ledgers For A Unit − Currency Options page.

When there is an unbalanced condition between the debit and credit rows due solely to rounding on conversion from foreign Amount to base amount, select a ChartField and ChartField value to be used during the editing process. This option makes it possible to edit the journals successfully without manual intervention in order to balance the entries. Balancing occurs when the total of foreign Amount debits equal credits, but the total base amount debits do not equal credits.

This functionality does not correct the following conditions:

Any of the foreign currency debits and credits are not equal.
When foreign amount debits do not equal credits, but base Amount debits equal credits.
When there are manual entry errors for foreign Amount, but base amount debits equal credits.
No exchange rate has been defined and the journal is imported.

Journal Source Page

Use the journal source pages to select how you want to record adjusting entries for out-of-balance conditions that are caused by foreign currency rounding. Also use these pages to specify other currency options at the source level.