Currency Defaults and Conversion in Salary Plans

You specify a default currency code at each stage in the process of defining salary plans, grades, and step components. The system enters that currency code as the default at the next stage, which you can change. Define grades and steps in multiple currencies to accommodate the organization's needs.

The system performs compensation frequency conversion in the currency that is specified for the rate code. When the system totals the step components and validates the grade ranges, it converts all compensation rates to the currency of the grade.

The following table summarizes the source of the currency code default and the use of the currency code in calculations:

Salary Plan Level and Page	Source of Default Currency Code	Use in Calculations
Salary Plan. Salary Plan Table setup page.	The currency code that you select for the organization on the Installation table.	None (for defaults only).
Salary Grade. Salary Grade Table setup page.	The currency code that you select for the salary plan on the Salary Plan table.	On the Salary Grade Table page, the system displays the salary ranges in the currency of the grade for each frequency.
Salary Step. Salary Step Components setup page.	The currency code that you select for the salary grade on the Salary Grade table.	On the Salary Step Components page, the system displays the total compensation in the currency of the step for each frequency.
Salary Step Component. In the grid on the Salary Step Components setup page.	The currency that you define for the rate code on the Comp Rate Code table.	On the Salary Step Components page, the system displays the compensation rate for the rate code in this currency for each frequency.