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.
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.