Multicurrency

The timing of the exchange rates that the system uses to perform conversions depends upon whether you enabled the contract liability recognition option at the product group level. This exchange rate is used for converting the revenue amount when the contract currency is different from the PeopleSoft General Ledger base currency and for interunit transfers in which the base currency for the PeopleSoft General Ledger business unit to which you are transferring is different from the base currency of the PeopleSoft General Ledger business unit from which you are transferring.

If you did not select the option to book to contract liability, then the Amount-based Revenue process uses the exchange rate that is current for the accounting period in which you are running the process. If you selected the option to book to contract liability, then the Contract Liability process and the Amount-based Revenue process use the same exchange rate to convert the contract liability amount from PeopleSoft Contracts.

The system always translates interunit transfer amounts by using the rate type, the current accounting month's rate, and the contract's PeopleSoft General Ledger business unit currency (not the contract's billing currency). For example: Contract CON0001 has a contract currency of DEM. Contract CON0001 is associated with PeopleSoft Contracts business unit CABU01. PeopleSoft Contracts business unit CABU01 is associated with PeopleSoft General Ledger business unit GLBU01, which has a currency of USD. The system performs the conversion from DEM to USD when populating contract liability (assuming that you've enabled the option to book to contract liability). The system then performs the interunit-related conversions from USD to the currency of the PeopleSoft General Ledger business unit receiving revenue.