Entering Foreign Currencies in Journal Entries
This section provides an overview and discusses how to enter journal lines, post foreign currency journal lines, round adjustments for foreign currency and balance journals in a foreign currency.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
JOURNAL_ENTRY2 |
Enter journal lines for foreign currency transactions. |
You can enter journal entries in the base currency for a business unit or in other valid foreign currencies. PeopleSoft General Ledger processes transactions that are entered in base currency as usual, with no additional transaction processing.
Foreign currency denominated transactions require conversion into the base currency. The journal entry pages enable you to enter transactions in a foreign currency and, simultaneously, to convert them to the base currency of the ledger.
Use the Journal Entry - Lines page (JOURNAL_ENTRY2) to enter journal lines for foreign currency transactions.
Navigation:
General Ledger, Journals, Journal Entry, Create Journal Entries, Lines tab
Journal entries in a foreign currency can contain four types of journal entry lines:
Standard foreign currency lines.
Base currency lines.
Base currency adjustment lines.
Statistical amount lines.
Standard foreign currency journal lines inherit, the currency code, rate type, and exchange rate from the header. You can override any of these values.
Once you enter the amount, the system calculates the base amount. Base currency adjustment lines are controlled by the source, ledger, or business unit base currency adjustment options.
Note: This page or related pages operate in deferred processing mode. Most fields are not be updated or validated until you save the page or refresh it by clicking a button, link, or tab. This delayed processing has implications for the field values on the page—for example, if a field contains a default value, any value that you enter before the system updates the page overrides the default. Another implication is that the system updates quantity balances or totals only when you save or otherwise refresh the page.
The manner in which the system posts multicurrency journals depends on the kind of journal line that has been generated.
Base Currency Journal Lines
Base currency lines within a multicurrency journal consist of a base code and amount only. When these are posted, the system posts the base amount to the Posted Total Amount and the Posted Base Amount fields of the ledger lines for the base currency.
Base Currency Adjustment Lines
Base currency adjustment lines differ from base currency lines in that the adjustment is posted for the corresponding foreign currency. The system posts the base amount to the Posted Base Amount field of the ledger line for that foreign currency.
In this example of a partial journal, the journal to post has a base currency line of USD and two foreign currency lines—CHF and MXN
|
Account |
Foreign Currency |
Foreign Amount |
Rate Type |
Exchange Rate |
Base Amount |
|---|---|---|---|---|---|
|
100010 |
MXN |
1000.00 |
CRRNT |
0.1111 |
111.11 |
|
100010 |
USD |
|
|
|
100.00 |
|
100010 |
CHF |
500.00 |
SPOT |
0.5000 |
250.00 |
The system posts only the base currency and the foreign currency that is valid to the ledger. Notice the changes in the Posted Total Amount and Posted Base Amount fields as each line is posted.
|
Account |
Currency Code |
Posted Total Amount |
Posted Base Amount |
Comments |
|---|---|---|---|---|
|
100010 |
MXN |
1000.00 |
111.11 |
after first line is posted |
|
100010 |
USD |
111.11 |
0.00 |
|
|
100010 |
MXN |
1000.00 |
111.11 |
after second line is posted |
|
100010 |
USD |
211.11 |
100.00 |
|
|
100010 |
MXN |
1000.00 |
111.11 |
after third line is posted |
|
100010 |
USD |
461.11 |
100.00 |
|
|
100010 |
CHF |
500.00 |
250.00 |
|
Because the amount on each line is individually converted, base currency totals are potentially out of balance due to rounding. Depending on which foreign currency rounding option you select on the Ledgers For A Unit - Currency Options page, the difference for each foreign currency is:
Applied to the last line for the currency if you selected the Adjust Last Journal Line option.
Entered on a new base currency adjustment line if you selected the Add Adjusting Journal Line option.
Depending on the currency balancing options, foreign currency journals are balanced by both foreign and base amounts. Each foreign currency is balanced by a foreign amount. If suspense processing is in effect, the system creates a standard foreign currency suspense line for each out-of-balance foreign currency. The system automatically calculates the base amount.
Base currency lines are balanced by base amount. If suspense processing is in effect, the system creates a suspense line as a base currency line for the out-of-balance lines.
In this example, rounding errors and differences in exchange rates cause an out-of-balance condition. The foreign currency, rate type, and exchange rate are inherited from the journal header.
|
Account |
Foreign Currency |
Foreign Amount |
Rate Type |
Exchange Rate |
Base Amount |
|---|---|---|---|---|---|
|
100000 |
MXN |
1000.00 |
CRRNT |
0.1750 |
175.00 |
|
120000 |
MXN |
(999.00) |
CRRNT |
0.1750 |
(174.83) |
|
130000 |
CHF |
500.00 |
CRRNT |
0.5000 |
250.00 |
|
140000 |
CHF |
(500.00) |
HIST |
0.4999 |
(249.95) |
The system generates additional adjusting journal lines to balance the journal (assuming that the foreign currency balancing options and the rounding adjustment options are properly set).
|
Account |
Foreign Currency |
Foreign Amount |
Rate Type |
Exchange Rate |
Base Amount |
|---|---|---|---|---|---|
|
849200 |
MXN |
(1.00) |
CRRNT |
0.1750 |
(0.18) Suspense |
|
849600 |
|
|
|
|
0.01 Rounding Adjustment |
|
849600 |
|
|
|
|
(0.05) Rounding Adjustment |
Note: Use the GLC7501 - Journal Entry Detail report to print foreign currency journals.