Currency Changes

When a calendar is reprocessed for retroactivity, Global Payroll uses the original processing currency. This is important because with retroactivity it is necessary to recalculate prior periods in the same currency as the original calculation for the pay period. So, for example, if you were to change the processing currency at the pay entity level between the recalc period and the current period, the difference between the new value and the old value would still be computed in the currency of the original calculation. This means that retro deltas are converted to the processing currency of the period that they are pulled into. The system uses the current segment's exchange rate information (exchange rate type and exchange rate effective date (defined at the payee level) to do the currency conversion.

For example, from January 1998 to June 1998, the currency is French francs. In July, the company decides to use the euro. In July, retroactivity for a payee is effective in June 1998. Everything pertaining to the recalculation is done using French francs. When the delta is calculated, it is calculated in French francs and then converted to the euro using the exchange rate information as of the current segment. Retro adjustments are brought forward into the current period in euros.