2 Overview of Multicurrency Time and Labor Tracking

This chapter contains the following topics:

2.1 Understanding Multicurrency Time and Labor Tracking

As companies expand their business internationally, they find that they must send their employees abroad or employ workers in foreign countries. JD Edwards EnterpriseOne and Time and Labor software provides such multicurrency features.

The system includes multicurrency time and labor tracking features in all of the programs that you use to enter employee time. When multicurrency time and labor tracking is enabled, the currency information from specified accounts provides domestic and foreign recharge rates from F48096. If you do not use F48096, the system calculates the billing rate by using the currency of the company that is associated with the business unit that is entered in the account number and job location. The system also uses this currency information during the journal entry process to determine correct amounts for entries to the general ledger.

Multicurrency time and labor tracking uses two types of currency:

Currency Type Description
Base currency The currency of the company that is associated with the employee's home business unit.
Transaction or recharge currency The currency of the company that is associated with the job location to which time is charged.

You can specify whether the billing rate or the foreign billing rate is fixed. You can enter the fixed rate manually on the timecard, or the system can derive the fixed rate from F060116 or F48096. The other rate is then calculated from the conversion rates that you set up in the Currency Exchange Rates program (P0015A).

To account for different billing rates and maintain foreign billing rates, the system uses F48096. This table includes rates for each specified currency code and enables you to set up billing rates for multiple transactions.

For example, if an employee based in the United States works in Japan on two jobs with different billing rates, you can account for each billing rate. After you create a user-defined generation type, you can retrieve payroll billing rates from F48096.

If you are not using F48096, the system retrieves currency rates from the Work With Currency Exchange Rates program. You set up the currency for each company. The system determines which company is associated with the specified business unit and uses the currency that is associated with that company, as defined in F0010. The system then uses the business unit and job location to derive the additional currency.

After both currencies have been identified, the system uses the Work With Currency Exchange Rates program to determine the conversion rate on the specified date.

Note:

The system initially uses the work date on the timecard to determine the exchange rate. However, the system uses the general ledger date to derive the rate when creating journal entries. For example, if a conversion rate of 2.0 is valid from January 1, 2005 through January 31, 2005 and a conversion rate of 3.0 is valid from February 1, 2005 through February 28, 2005, the system uses the conversion rate of 2.0 when you enter a timecard with a work date of January 31, 2005. However, if the timecard is posted on February 03, 2005, the system uses the exchange rate of 3.0 to create the journal entries that are associated with that timecard.

If the system finds exchange rates on the timecards that are different from those on the journal entries, the Employee Transaction Detail Payroll Journal (Compressed), and Account Ledger files are updated with the journal entry rate to ensure that the data between the general ledger and the timecard history tables is accurate.

The system uses these tables to manage multicurrency time and labor tracking:

  • F06116

  • F0618

  • F05290

  • F063951

  • F06116Z1

  • F0911

  • F48096

After payroll processing is complete, only the F0618, F48096, and F0911 tables retain multicurrency records.

When multicurrency time and labor tracking is enabled, these reports contain multicurrency time and labor information:

  • Payroll Journal Proof/Edit Report. (R05229)

    This report provides a pro forma version of the journal entries that will be posted to the general ledger for timecard entries.

    All journal entries (T1-T6), as well as intercompany settlements, appear on the report. The report lists one entry for each transaction amount in the transaction currency. However, when the batch is posted, the system creates two entries from the single entry. The first entry shows the base amount of the transaction in the transaction currency. The second entry, noted by the AM journal type, shows the transaction currency for the difference between the base and transaction amounts. In addition to normal payroll information, the currency code is displayed for all multicurrency debit and credit entries created during payroll.

    Note:

    If you are posting entries with no currency amounts (hours only), the system does not display a currency code on the report; however, the currency code exists in F063951.
  • Time and Pay Entry Register (R053001)

    This report provides detailed information about all of the timecard records that you include in a batch. When multicurrency time entry is enabled, this report includes currency information.

2.1.1 Setting Up Multicurrency Time and Labor Tracking

This section discusses how to:

  • Set up company options.

  • Set up general accounting constants.

  • Set up a billing rate/markup table.

  • Set up currency exchange rates.

  • Set up employee payroll information.

  • Set the Time Entry Master Business Function processing options.

  • Set the processing options for the Generate Timecard Journals program (R052901), also called the Generate Timecard Entries program.

The following setup procedures apply only to multicurrency time and labor tracking; separate procedures exist for setting up the JD Edwards EnterpriseOne Time and Labor system.

2.1.2 Set Up Company Options

To enable multicurrency time and labor tracking, you must enable multicurrency functionality and general ledger integration on the Additional Company Options form for Company 00000.

2.1.3 Set Up General Accounting Constants

To update multicurrency time and labor information in the general ledger, you must set up the multicurrency conversion option in the General Accounting Constants (P0000) to use either the multicurrency account multiplier or account divisor. You must also set up the general accounting constants to use the Flex - Create Interco w/o Hub method (method 2) when creating multicurrency intercompany settlement transactions.

2.1.4 Set Up a Billing Rate/Markup Table

You must define billing rate markup rules in F48096. This table stores information that the system uses to convert rates for multicurrency time and labor tracking.

2.1.5 Set Up Employee Payroll Information

Multicurrency information is based on the assumption that the work that employees perform is billable. Therefore, you must set up employees to create billing (recharge records) for the system to create multicurrency information. The system will generate multicurrency information when timecards exist for employees who are set up for payroll and recharge processing (Type 2) or recharge processing only (Type 3).

2.1.6 Setting Processing Options for Multicurrency Time and Labor Tracking

To use multicurrency time and labor tracking, you must set processing options for the Batch Time Entry File Revisions program (P05116Z1) and the Time Entry MBF Processing Options program (P050002A). Processing options in the Batch Time Entry File Revisions program:

  • Enable multicurrency time and labor tracking.

  • Specify whether amounts that you enter are in the domestic currency of a contract or the foreign currency of a supplier.

  • Specify whether the system dynamically creates new accounts.

Processing options in the Time Entry MBF Processing Options program enable multicurrency time and labor tracking. The processing options in the Time Entry MBF Processing Options program specify how the system uses F48096, and whether the system dynamically forces account creation. You also use the processing options to determine which currency (base or foreign) is fixed and which is calculated. To set multicurrency processing options, access the Recharge tab on the Time Entry MBF page.

You use the processing options in the Time Entry MBF program to:

  • Enable multicurrency time and labor tracking.

  • Specify whether the system uses the currency that is associated with the employee's business unit or the currency that associated with the recharge business unit as the fixed currency.

    If you select the employee's business unit as the fixed currency, you must enter a billing rate on the timecard. The Foreign Billing Rate field is then disabled and the value for that field is calculated by the system. Conversely, if you use the recharge business unit as the fixed currency, you must enter a foreign billing rate on the timecard. The Billing Rate field is then disabled, and the value for that field is calculated by the system.

    These examples illustrate how the system differentiates between the home and recharge business units.

  • If the employee's home business unit is 9, which is part of a company that is associated with United States dollars (USD), the system uses USD for the base amount.

    For this example, F48096 must be defined for USD currency, or the exchange rates must be set up within the Work With Currency Exchange Rates program.

  • If the employee's recharge business unit is Business Unit 77, which is part of a company that is associated with Canadian currency (CAD), the system uses CAD for the base amount.

    For this example, F48096 must be defined for CAD currency, or the exchange rates must have been set up within the Currency Exchange Rates program (P0015A).

  • Specify whether the system uses F48096 to retrieve rates. If you do not use F48096, the system uses the exchange rates that you set up in the Currency Exchange Rates program.

  • Specify the generation type.

  • Specify the action to take if no record is found in F48096.

  • Specify the version of the Billing Rate / Markup Table program (P48096).

  • Specify whether the system uses dynamic account creation.

    The dynamic account creation process creates a valid account when you enter a timecard that includes an account number that is not active in the system. However, the account number must exist in the model business unit. Dynamic account creation does not create records in F48096.

    Note:

    If you use F48096, you must enter recharge account numbers, specify billing rate information, and define effective dates in this table. The system does not require that accounts entered into this table be active.