Working with Currency (WCUR)

Purpose: Use the Currency file to define currencies and their conversion rates.

The system uses this information when:

• you create purchase orders, to convert your currency rate to your vendor's currency rate

• you receive against a purchase order, to convert your vendor's currency rate to your currency rate

• you bill orders, if the Customer Sold To on the order is from a foreign country

• you enter orders, bill orders, or process refunds, if you track multi-currency by offer

Note: If you track currency conversion rates at the time of order billing in the Invoice Currency file, you must use the same code to identify a country and its currency. You must also have the Track Invoice Currency (D68) field in the System Control file set to Y. See Customer Service Setting Up the Country File (WCTY) for more information on country codes.

Multiple Currencies by Offer: You can accept orders in various currencies by defining the currency to be used for each offer. You must set the Multi Currency by Offer (E03) system control value to Y. Setting up multiple currencies by offer enables you to take orders in a foreign currency, but track demand in your local currency. It also enables double postings to the General Ledger Interface file for order-related transactions and the capturing currency fluctuations in the file as well. Note: If you enable multiple currencies by offer, the Use Alternate Currency Pricing (H89) system control value should be set to N.

Alternate Currency Pricing: You can price offers in foreign currencies by defining the currency and conversion rate to be used for each offer. You must set the Use Alternate Currency Pricing (H89) system control value to Y. Setting up alternate currency pricing enables you to take orders in the local currency but enter amounts in the foreign currency. It also enables you to display the foreign currency on reports and customer related forms. If you enable alternate currency pricing, the field Decimalized currency displays for each currency, where you can define whether the currency uses decimals. Note: If you enable alternate currency pricing, the Multi Currency by Offer (E03) system control value must be set to N.

In this topic:

• Shadow Posting when using Multiple Currencies

• Currency Fluctuation

• Work with Currency Screen

• Create Currency Screen

• Change Currency Screen

• Display Currency Screen

Shadow Posting when using Multiple Currencies

When you process orders in multiple currencies (the Multi Currency by Offer (E03) system control value is set to Y), each order-related posting to the General Ledger Interface file is made twice: once to your local currency, and once to a shadow entity. The shadow entity inherits the chart of accounts of the local entity, but each transaction is posted to the shadow entity in the order currency, and to the actual entity in your local currency.

Example: Your local currency, specified in the Local Currency Code (A55) field in the System Control file, is the U.S. dollar. You also publish a catalog for your Canadian customers where the prices appear in Canadian dollars. The exchange rate for the Canadian dollar today is 1.35. You take an order from the Canadian catalog for $10.00 in cash.

The system debits cash/accounts receivable and credits deferred liability for the order total in each currency, using the current exchange rate. In the example, the system makes these postings:

• $10.00 to the shadow entity associated for the Canadian dollar in the Currency file

• $7.41 (10 / 1.35) to the actual entity associated with the order (through the division specified in the Source Code file)

Note: Postings to the General Ledger Interface file at order entry will vary depending on the payment type and the Deferred Liability Cash Post Method (C48) defined in the System Control file. See General Ledger Overview.

The shadow entity field is required for all currencies you create in the Currency file, except your local currency.

Currency Fluctuation

You can define a general ledger account number to track gains and losses due to fluctuations in currency exchange rates. This field is available in the Division file; see Working with Divisions (WDIV).

The system uses this account to post net changes in order value between the time you enter the order (and receive the cash) and the time you bill it. For example, using the order described under Shadow Posting, assume that this is a prepaid order and that the exchange rate is 1.29 for Canadian dollars at the time you bill the order. Converted into your local currency, the order value is $7.51. This represents a net change of $.10. In other words, you have lost $.10 due to currency fluctuation.

The system debits deferred liability and credits sales for the order in both currencies. In this case, the system makes these postings:

• $10.00 to the shadow entity associated for the Canadian dollar in the Currency file (both debit and credit)

• debit deferred liability $7.41 (10 / 1.35) to the actual entity associated with the order (through the division specified in the Source Code file)

• credit sales $7.51 (10 / 1.29) to the actual entity

• debit currency fluctuation $.10 to the actual entity

The way that the system posts deferred liability for prepaid orders depends on the value in the Deferred Liability Cash Post Method (C48) field in the System Control file. Also, see that chapter of the Installation guide for a comprehensive discussion of using the Multi Currency by Offer (E03) field in the System Control file and other general usage values.

Work with Currency Screen

How to display this screen: Enter WCUR in the Fast path field at the top of any menu or select Work with Currency from a menu.

MSR0117 DISPLAY Work with Currency 3/27/02 13:14:01 KAB Co. Last Conversion Decimalized Opt Code Description Update Rate Currency Type options, press Enter. 2=Change 4=Delete 5=Display BRT BRITISH POUND 11/27/95 .8700000 Y CAN CANADIAN DOLLARS 6/06/97 2.0000000 Y FRC FRENCH FRANCS 11/20/97 2.0000000 Y USA USA CURRENCY 6/23/97 1.0000000 USD US DOLLARS 10/02/95 1.0000000 Y YEN YEN CURRENCY 1/28/02 2.5000000 N F3=Exit F6=Create F12=Cancel F21=Print list F24=Select company

Field	Description
Code	A code that represents the currency. Alphanumeric, 3 positions; optional.
Description	The description of the currency code. Alphanumeric, 30 positions; optional.
Last update	The date that a conversion rate was most recently updated. Numeric, 6 positions; optional.
Conversion rate	The rate at which this currency is converted to the local currency. Numeric, 11 positions with a 7-place decimal; display-only.
Decimalized currency	Indicates whether this currency uses decimal places for alternate currency pricing. This field only displays if the Use Alternate Currency Pricing (H89) system control value is set to Y. Alphanumeric, 1 position; optional.

Screen Option	Procedure
Create currency codes	Press F6 to advance to the Create Currency Screen.
Change currency information	Enter 2 next to a currency code to advance to the Change Currency Screen.
Delete currency information	Enter 4 next to a currency code to delete it.
Display currency information	Enter 5 next to a currency code to advance to the Display Currency Screen.

Create Currency Screen

Purpose: Use this screen to create a currency code.

How to display this screen: At the Work with Currency Screen, press F6.

MSR0120 ENTER Create Currency 3/28/02 8:01:06 KAB Co. Currency code . . . . . . Description . . . . . . . Date of last update . . . Conversion rate . . . . . Decimalized currency? . . (Y/N) F3=Exit F12=Cancel

Field	Description
Currency code	A code that represents a type of currency. Alphanumeric, 3 positions. Create screen: required. Change screen: display-only.
Description	The description of the currency code. Alphanumeric, 30 positions; required.
Date of last update	The most recent date on which the conversion rate was updated. Note: The system does not update this field. Numeric, 6 positions (MMDDYY format); required.
Conversion rate	The rate at which this currency is converted to the local currency in purchase order entry and receipts. The system divides the amount in the foreign currency by the conversion rate to determine the amount in your local currency; for example, if you set the conversion rate for Canadian dollars at 1.3, the system would convert $10.00 to $7.69 in your local currency, dividing 10 by 1.3. Currency conversion settings for purchase order entry and receiving are defined in the Vendor file. See Working with Vendors (WVEN) for more information. The system does not use this conversion rate for alternate currency pricing; the system uses the conversion rate defined in the Offer file. See Using Alternate Currency Pricing. Numeric, 11 positions with a 7-place decimal; required.
Shadow entity	The entity to use for duplicate (shadow) postings to the General Ledger Interface file. This field displays only if the Multi Currency by Offer (E03) system control value is set to Y; it is required for all currencies except your local currency, as defined in the Local Currency Code (A55) field in the System Control file. Entity codes are defined in and validated against the Entity file; see Working with Entities (WENT). Numeric, 3 positions; required.
Decimalized currency	Indicates whether the currency uses decimals when using alternate currency pricing. This field displays only if the Use Alternate Currency Pricing (H89) system control value is set to Y. Valid values: Y = The currency uses decimals. When converting the amount, the amount includes decimals. For example, 49.99 instead of rounding to 50.00. N = The currency does not use decimals. Instead, the amount is rounded to the nearest whole unit of currency. For example, 50.00 instead of 49.99. Note: This field does not apply to currency conversion in purchase order entry and receipts. See Using Alternate Currency Pricing and Decimalized Currency? for more information on the conversion calculations the system performs when using alternate currency pricing. Alphanumeric, 1 position; required.

Change Currency Screen

To change: Enter 2 next to a currency code at the Work with Currency Screen to advance to the Change Currency screen. At this screen you can change any information except the currency code. See Create Currency Screen for field descriptions.

Display Currency Screen

To display: Enter 5 next to a currency code at the Work with Currency Screen to advance to the Display Currency screen. You cannot update any information on this screen. See Create Currency Screen for field descriptions.