28 Understanding Cash Forecasting in Multiple Currencies

This chapter contains the following topics:

28.1 Cash Forecasting Programs for Multiple Currencies

The JD Edwards EnterpriseOne General Accounting cash forecasting programs can help your company project, or forecast, future cash requirements and effectively manage the cash accounts. With cash forecasting, you can analyze one or more bank accounts and forecast the cash position daily or periodically based on a date horizon.

The system uses three currencies in cash forecasting:

  • Base currency. The base currency is the currency of the company. For a foreign currency transaction, the node currency is the currency code of the domestic side of the transaction.

  • Node currency. The system uses the node currency to revalue and store cash forecast amounts belonging to a single cash type.

  • Display currency. The system uses this common currency in which node amounts for all cash types are dynamically revalued into for display purposes.

28.1.1 Multicurrency Considerations

The initial setup and routine processing for cash forecasting is the same, regardless of whether you work in a multicurrency environment, with these exceptions:

  • To work with cash forecast amounts in a currency other than the domestic currency, you can assign a revaluation currency to cash type rules.

    Enter the currency code in the Node Currency field on the Revise Cash Type Rule form.

  • When you run the Refresh Cash Forecast Data program (R00522), the system summarizes open amounts in the Cash Forecast Data table (F09522) by bank account, due date, and base (domestic) currency.

    If more than one bank account, due date, and base currency meets the selection criteria for a cash type, the program produces multiple summarized amounts.

    If you assigned a node (revaluation) currency to a cash type rule, the R00522 program uses the summarized base currency amounts in the F09522 table, retrieves the exchange rate from the F0015 table, and calculates amounts in the node currency. The system stores both the base currency and revaluated node amounts in the F09522 table. If an exchange rate does not exist, the R00522 program sends a message to the work center and summarizes detail records for the cash type in the base currency instead of the node currency. The R00522 program does this so that a missing exchange rate does not cause the process to completely fail. When this occurs, the base currency is substituted for the node currency and the base currency amount and node currency amount in the F09522 table are the same.

  • Before you view cash forecast amounts for a based on date using the Cash Forecast Analysis program (P09522), specify the currency code of the display (revaluation) currency in the processing options. If you do not specify a display currency in the processing option, the system displays amounts in the currency for company 00000.

    The P09522 program extracts the resulting node amounts from the F09522 table. To calculate correct cash forecast amounts, an exchange rate must exist between the display currency and the node or base currency that is stored in the F09522 table. If an exchange rate does not exist, the P09522 program issues a hard error that identifies the currency relationship that is missing the exchange rate.

The following example provides explanation as to how the system processes based on the base, node, and display currencies. In this example, the base currency is COP and the node currency is EUR:

  • The display currency is COP (same as base currency): When you run the P09522 program, the system does not have to convert to EUR. The system displays the COP amount from the R00522 table that the system defaulted to the node amount (regardless of the missing exchange rate).

    Note:

    If the display currency is the same as the node or base currency for a cash type rule, the performance on the Cash Forecast Analysis interactive form is improved because the program does not have to revalue amounts again.
  • The display currency is EUR (same as node currency): If you added the missing EUR/COP exchange rate since you ran the R00522 program, the system locates the exchange rate for EUR/COP and perform the calculation dynamically to convert the COP amount (that the system defaulted from the R00522 table to the node amount) into the EUR display currency. If you do not add the missing exchange rate, the system returns a hard error in P09522 program to set up the exchange rate. You must add the exchange rate to continue running the P09522 program. You must enter the exchange rate using the Currency Exchange Rates program (P0015A) and then click Find again on the Cash Forecast Analysis form to view the cash forecast amounts. You do not have to run the R00522 program to refresh the data in the F09522 table again. You can enter an exchange rate anytime before you run the P09522 program.

  • The display currency is USD (not base or node currency): If the system can locate an alternate exchange rate for USD/COP, the system can perform the calculation to convert the COP amount stored in the node amount and display an amount in USD. If the display currency is anything else for which an exchange rate does not exist, the system returns a hard error in P09522 program to set up the exchange rate. You must add the exchange rate to continue running the P09522 program. the system returns a hard error in P09522 program to set up the exchange rate. You must add the exchange rate to continue running the P09522 program. You do not have to run the R00522 program to refresh the data in the F09522 table again. You can enter an exchange rate anytime before you run the P09522 program.

See Also