1. Using Revenue Management
  2. Reference Currency for Standalone Selling Prices

Reference Currency for Standalone Selling Prices

You can designate a single reference currency to evaluate and assign pricing dimensions and standalone selling prices to all of your accounting contracts, regardless of the associated entered or accounted currency of the source document line.

Define a reference currency to designate:

  • A single reference currency for standalone selling prices applicable across all ledgers configured within your instance.
  • An application-wide reference currency for standalone selling prices applicable to all source document lines, regardless of the source application.
  • The rate type and date for translating source document lines to reference currency equivalents when evaluating amount pricing band segment value assignments.

Using a reference currency for standalone selling prices lets you:

  • Evaluate and assign pricing dimension amount band segments based on the reference currency equivalent amount of the source document line.
  • View the standalone selling price for the performance obligation and underlying promises in both the reference and entered currencies in the Edit Customers Contract page.
  • Simplify and reduce the ongoing maintenance of establishing and maintaining standalone selling prices and pricing dimension bands in multiple currencies.

When you define a reference currency, the application uses:

  • The currency selected in the Currency field as the lookup currency when assigning standalone selling prices instead of the source document line currency.
  • The rate from the rate type and date for the selected currency to convert the applicable entered currency amounts from the source document line to the reference currency.

After you define a reference currency on the Manage System Options for Revenue Management page, you can then create and maintain standalone selling prices in one single currency for each unique combination of the following items for the SSP Representation Types you are using:

  • Item
  • Memo line
  • Performance obligation template and item group
  • Pricing dimension combination
  • Effective period
  • Unit of measure

You only need to upload standalone selling prices in the defined reference currency rather than creating and maintaining standalone selling prices based on currencies you entered in your source transaction lines.

Once the application assigns the pricing dimension combination to the performance obligation or promised detail line, the application assigns the standalone selling price. The application:

  • Selects the standalone selling price to assign to the performance obligation or promised detail line based on the combination of attributes listed previously in this topic.
  • Uses the same logic, except when looking up the standalone selling price. In those instances, the application uses the reference currency instead of the entered currency of the source transaction line.

You can assign the item, memo line, performance obligation template, or item group to a standalone selling price profile using an standalone selling price representation unit price type. The application:

  • Translates the standalone selling price back to the currency of the source transaction line that you entered before stamping the standalone selling price.
  • Uses the inverted value of the reference currency conversion rate to determine the entered currency unit price standalone selling price.

You can also assign the item, memo line, performance obligation template, or item group to a standalone selling price profile using any of these standalone selling price representation types if the reference currency unit standalone selling price is represented by one of these percentage types:

  • Percentage of Base Unit Price
  • Discount Percentage of Unit List Price
  • Gross Margin

In these instances, the application uses the percentage as defined for the reference currency. The application doesn't complete a conversion back to the line's entered currency before stamping the standalone selling price on the performance obligation or promised detail line.

You can view the reference currency unit standalone selling price assigned to the accounting contract in the Edit Customer Contract page. The Reference Currency Unit SSP column in the Performance Obligations and Promised Detail tabs in the Edit Customer Contract page displays the reference currency code value used at the contract's inception to assign the pricing dimension segment values and standalone selling prices for the contract. The value represents a unit price or percentage, depending on the standalone selling price representation type of the standalone selling price profile that is assigned to the line. You can view the unit standalone selling price in both the reference and entered currency for the line.