Currency at the Pay Entity Level

For payroll purposes, the pay entity is the highest level of an organization. All payees are assigned to pay groups. Each pay group is assigned to one—and only one—pay entity. The currency entered on the Pay Entity page affects all pay groups that are assigned to that pay entity and all payees who are assigned to those pay groups. We refer to the pay entity currency as the processing currency.

All calculations for payees who are associated with this pay entity occurs in the pay entity currency. Before processing, all input items are converted to this currency. After processing, all output values are stored with net distribution information for each payee. Eventually this information is passed to banking payment files. Any conversion of a monetary output value to a different currency is handled by the party who receives the information, such as a bank.

Always define your processing currency as the currency that is used for most of your input and output, unless your country or locality requires stipulating what currency must be used for processing.

Note:

You cannot override the processing currency. This doesn't mean that you can't enter amounts, or get output, in other currencies; it means that the processing occurs in this currency. If you override the default currency, the payments are converted to the processing currency for processing.