Exchange Rate Types and Dates

When the Global Payroll calculation encounters a currency value that is not in the processing currency as defined at the Pay Entity level, the payroll system must perform a currency conversion. To do this, the system must know which exchange rate type to use and the dates to which it applies. The exchange rate type and dates documented below only apply to calculations performed within the Global Payroll process. They do not apply to other features like online currency conversions.

Exchange Rate Types and Dates at the Payee Level

You can override the exchange rate type and date at the payee level on the Payee Data Defaults page. Let's say that ten payees in the United Kingdom are working in Germany. One has a special rate, and the other nine get the official bank rate. For the pay group that includes these payees, you define the exchange rate type as the official bank rate. But let's say that you need to override that entry for the tenth payee. You can override the exchange rate in Job Data.

The default values for the payee are those defined for the payee's pay group. The system stores a value at the payee level only if you override the default.

To determine the exchange rate date, the system looks at the period end date, payment date, or period begin date and compares the date to the calendar period dates. It determines which exchange rate—based on the appropriate effective date—should be used for any required currency conversions during batch processing.