Understanding Multicurrency Contracts
If you work in a multicurrency environment, you can create multicurrency contracts. Multicurrency contracts reflect the currency of your company (domestic currency) or the currency of your customer (foreign currency).
As you build a global customer network, you can use the JD Edwards EnterpriseOne Contract Billing system for revenue recognition and billing processes in multicurrency environments. For example, you can:
Accumulate billable costs that originate in multiple currencies, such as the costs for employees' time.
Apply markup amounts to costs in either the domestic or foreign currency.
Generate invoices for your customers in a currency (foreign) that is different from the currency of the contract.
The system recognizes the currency of the company that is responsible for the contract as the domestic currency. While the currency that you define for your customer might be different from the currency that you set up for your contract, you manage the contract in the domestic currency. Then, when you generate an invoice for the contract, the system creates the invoice using the currency of the customer (foreign currency).
After you create a multicurrency contract, you can review the contract in either the domestic or foreign currency. You can revise multicurrency contracts only when you access the contract in the currency mode in which it was originally created. The system prevents you from entering both foreign and domestic currency on an individual contract.
When you add a new contract, the base currency comes from the associated job. The billing currency comes from the customer record. The currency mode comes from the billing constants.
You can change the billing currency and mode until you add a change order and billing line. After you enter the billing line, you cannot change the currency code or mode. The system retrieves the exchange rate for the Contract Master table (F5201) based on the rate for the date associated with the original change order of the contract. The system uses the billing currency that you enter on the Contract Master Revisions form to calculate all of the foreign amounts of the workfile transactions.
You can update the minimum threshold amount on the Contract Master Revisions form only in fixed mode. The system uses the exchange rate derived from the change date of the original change order to calculate the alternate mode of the threshold amount.
After you set up the contract master record, you must set up change orders and billing lines. After you add the first billing line, the system updates the currency exchange rate on the Contract Master and Billing Line tables. You can enter the schedule of values only in fixed mode. The system uses the derived exchange rate to calculate the alternate mode.