10Multiple Currencies

This chapter contains the following:

The applications support multiple currencies, multiple daily rates, and currency rate conversion. If you're going to use multiple currencies, at a minimum you need to:

  • Specify corporate currency

  • Import or enter daily currency conversion rates

  • Enable the currencies you're going to use, if you previously disabled them

Optionally, you can let salespeople select different currencies in leads and opportunities.

The applications also support different currency conversion rate types, allowing your business to maintain different conversion rates between currencies for the same period. Examples of conversion rate types are supplied: Spot, Corporate, User, and Fixed.

You must complete several steps to enable salespeople to select multiple currencies in the applications.

Note: Perform these steps as a setup user (for example, a user with the Application Implementation Consultant job role).

Here are the high-level steps to enable multiple currencies:

Step Description Where to Find More Information

Set the default currency profile options.

Set the two profile options that specify default corporate currency and rate type.

See the Set Default Currency Profile Options section in this topic.

Check the setting of the default currency profile option.

Check the setting of the default currency profile option. This currency is the default used for salespeople in the transactional pages. The default currency is also used in a salesperson's forecast.

See the Check Default Currency Profile Option Setting in this topic.

Ensure currencies are enabled and verify precision.

Ensure that all of the currencies you plan to use are enabled for use and verify the precision.

See the Ensure Currencies are Enabled and Verify Precision section in this topic.

Set the multicurrency profile option for opportunities.

By default, one currency is set for an opportunity and its product lines. This default currency is a salesperson's preferred currency. If you want to enable multiple currencies for opportunities, set the multicurrency profile option.

See the Enable Multiple Currencies for Opportunity Product Lines topic in this chapter.

Let salespeople select the currency when editing leads and opportunities.

In the opportunity and lead edit pages, the Currency list of values is read-only by default. If you have enabled multiple currencies, you can let users pick a different currency at the header level by making the Currency field editable.

See the Let Salespeople Select the Currency in Leads and Opportunities topic in this chapter.

Enter currency daily rates.

To load daily rates, you can use a spreadsheet, file-based import, or web services.

See the Download the Desktop Integration Installer section in this topic.

Define and maintain daily currency conversion rates and conversion rate types.

The conversion rate is the ratio between two currencies; it shows how much of one money exchanges for another. Conversion rates are also known as foreign exchange rates. You define and maintain different conversion rates between currencies for the same period using conversion rate types.

See the Overview of Defining Daily Currency Conversion Rates section in this topic. Also see the topic, Enter Daily Rates Using the Daily Rates Spreadsheet, in this chapter.

Set up cross rate rules and overrides.

If you want to use combinations of cross rates across many currencies, you must:

  • Enable cross rates and allow cross-rate overrides

  • Maintain cross-rate rules

See the topic, Guidelines for Creating Conversion Rate Types, in this chapter.

After you have enabled multiple currencies, salespeople can set their preferred currency for the transactional pages and for business intelligence. For more information, see the related topic on setting general user currency.

Set Default Currency Profile Options

Your first step in the setup is to specify the default corporate currency and rate type by setting the Corporate Currency Default and Exchange Rate Type Default profile options.

Here's how you set the profile options:

  1. In the Setup and Maintenance work area, go to:

    • Offering: Sales

    • Functional Area: Company Profile

    • Task: Manage Currency Profile Options

  2. On the Manage Currency Profile Options page, click ZCA_COMMON_CORPORATE_CURRENCY and set it to your default corporate currency. The display name for this profile option is Corporate Currency Default. It stores configured corporate currency used across the applications.

  3. Save your changes.

  4. Click ZCA_COMMON_RATE_TYPE and set it to the default currency rate type. The display name for this profile option is Exchange Rate Type Default. It stores the default currency exchange rate type.

Check Default Currency Profile Option Setting

You also need to check the setting of the profile option that specifies default currency for users in the applications. The profile option, Default Currency (FND_CURRENCY), not only specifies the default currency in the transactional pages, it's also used in a salesperson's forecast. By default, the profile option is set to US dollar. You can set this profile option at site level (affecting all users of the environment), at product level, or at user level.

Note: Users can set their own currency preference in the Personalization screens available in the user name menu in the global header. The setting users set for themselves override the settings that you make in the profile options screens at site or product level.

Here's how to check the default currency setting:

  1. In the Setup and Maintenance work area, go to:

    • Offering: Sales

    • Functional Area: Sales Foundation

    • Task: Manage Administrator Profile Values

      Note: If you can't find this profile option, search for it from the main Sales offering page, using the search available in the Tasks widget available on the right side of the page.
  2. On the Manage Applications Core Administrator Profile Values page, search for and select the profile option name, Default Currency, or the code, FND_CURRENCY.

  3. Ensure the profile option value is set to your environment's default currency at site level.

To set the profile option for a specific user, create a new row in the table and enter the values as needed.

Ensure Currencies are Enabled and Verify Precision

By default, all currencies are enabled. But it's a good idea to double-check that all of the currencies you plan to use are enabled and that their precision levels are set correctly. Precision is the number of digits placed after the decimal point. For example, set USD to precision 2 to display one dollar as $1.00 in the UI.

Here's how to check:

  1. In the Setup and Maintenance work area, go to:

    • Offering: Sales

    • Functional Area: Company Profile

    • Task: Manage Currencies

  2. On the Manage Currencies page, click Search to search for all currencies, without entering any search criteria.

  3. Check that the Enabled option is set for each currency you plan to use.

  4. Check that the Precision is set consistently for each currency you plan to use.

    Note: When setting currency precision, be sure to set it correctly for all currencies you plan to use. This best practice ensures that decimal places are shown consistently in the UI for all the currencies you're using.
  5. If you made any changes, save your work.

Overview of Defining Daily Currency Conversion Rates

You have a few options for defining daily currency conversion rates, and you can maintain daily currency conversion rates between any two currencies. You can also enter daily conversion rates for specific combinations of foreign currency, date, and conversion rate type. The ways you can load currency rates are:

  • Load them manually using the Create Daily Rates spreadsheet.

  • Load them manually using the Import and Calculate Daily Rates file-based data import.

  • Load them automatically using web services.

For more information, see the related topics and the topics later in this chapter.

For salespeople to be able to select a different currency in opportunities and leads, you must make the field editable. By default, the currency selection field isn't editable for leads and opportunities.

Here's how to make the currency field editable:

  1. Ensure you're working in an active sandbox.

  2. Navigate to Configuration > Application Composer.

  3. In the navigation tree, expand Standard Objects, expand Opportunity or Sales Leads, and click Pages.

  4. In the region that corresponds to the page you're modifying, duplicate the standard layout and edit the resulting layout. For example, if you're making the field editable in opportunities, in the Creation Page Layout region, duplicate the standard layout and then edit the resulting layout.

  5. Select the newly created layout, click Actions and then click Edit UI Properties from the drop-down list.

  6. Select Currency from the Field Selection drop-down list.

  7. Select the custom layout in the Layout Properties section.

  8. Click Update.

  9. Select the Updatable option.

  10. Click Submit.

  11. Click Done on the Edit UI Properties: Creation Layout window and save your changes.

  12. While still in the active sandbox, navigate to Sales > Opportunities or Sales > Leads as a user who's a sales resource, such as a sales administrator or sales representative. Verify the change by editing an opportunity or lead and validating that the Currency field is a drop-down list that users can select.

  13. Publish the sandbox according to your company's business practices.

You can find more information on configuring lead and opportunity pages in the related topics.

You may want to let salespeople set different currencies on opportunity product lines. The setup involves the profile option, Multiple Currencies for Opportunity Revenue Lines Enabled.

Note: With this setup, when a user changes the opportunity currency, the change is propagated to the opportunity product lines.

Here's how you set the profile option to enable multiple currencies on product lines:

  1. In the Setup and Maintenance work area, go to:

    • Offering: Sales

    • Functional Area: Opportunities

    • Task: Manage Opportunity Profile Options

  2. On the Manage Opportunity Profile Options page, search for the profile option, Multiple Currencies for Opportunity Revenue Lines Enabled (the code is MOO_REVN_ENABLE_MULTICURRENCY) and select it.

  3. Set to Yes to allow different currencies at the line and header levels in opportunities. Set to No to disallow the functionality.

  4. Save your changes.

Implementation Concepts for Currencies

Consider these points about entering the currency code, date range, or symbol for the currency, when you create or edit currencies.

Currency Codes

You can't change a currency code after you enable the currency, even if you later disable that currency.

Date Ranges

You can enter transactions denominated in the currency only for the dates within the specified range. If you don't enter a start date, then the currency is valid immediately. If you don't enter an end date, then the currency is valid indefinitely.

Symbols

Some applications support displaying currency symbols. You may enter the symbol associated with a currency so that it appears along with the amount.

Currency Precision Level for Quota Amounts

Currency amounts for quotas use the number of decimal places set in the Precision Level field for the corporate currency. If you don't set the precision level, then amounts are saved and displayed with two decimal places.

You set the precision level for the currency in the Manage Currencies page. The currency you select for the profile option ZCA_COMMON_CORPORATE_CURRENCY, Corporate Currency Default, is the corporate currency.

The Revalue Opportunity Currency process manages the effects of revaluation of currency exchange rates on opportunity revenue.

Opportunity revenue is stored in the user-entered currency (also called transaction currency) in the revenue model. The revenue model also stores two exchange rates:

  • The exchange rate between the entered revenue currency and the configured corporate currency, as specified in the global configuration during the implementation. This rate facilitate construction of materialized views that roll up revenue metrics along the territory hierarchy.

  • The exchange rate between entered revenue currency and the entered opportunity-level currency. This rate calculates the opportunity summary revenue amounts as the sum of line revenue amounts. Opportunity line revenue amounts can be entered in currencies that are different from the currency specified at the opportunity level.

The process works in combination with these two profile options that store corporate currency and rate type:

  • Corporate Currency Default: Stores configured corporate currency.

  • Exchange Rate Type Default: Stores configured rate type.

Also keep in mind the following impact of the process:

  • The process can also be triggered when corporate currency, configured rate type, or exchange rate (or any combination of these) is modified, either directly through administrator intervention or when these currency parameters change in the general ledger.

  • Only product lines in Open status are targeted by the batch process.

  • When updating product lines, the process doesn't consider whether the revenue is already included in a forecast.

  • Forecasting activity is paused when this process executes.

Run the Process

Run the Revalue Opportunity Currency process from the job process screen available from the Scheduled Processes option on the Navigator menu. Select the job name Revalue Opportunity Currency.

Here are the steps to run the process in basic mode:

  1. Sign in as a sales administrator or as a setup user.

  2. From the Navigator, select Scheduled Processes (within the Tools category).

    The Scheduled Processes overview page appears.

  3. Click Schedule New Process.

  4. In the search dialog box, search for and select the Revalue Opportunity Currency process.

    The Process Details page appears.

  5. Click Submit.

This table shows the logical parameters expected by the batch process:

Parameter Default Description

CRM Common Currency

Stored in the profile option, Corporate Currency Default (ZCA_COMMON_CORPORATE_CURRENCY)

  • Configured corporate currency.

  • Passed if corporate currency changes.

  • Program doesn't check against profile for a match.

CRM Common Currency Rate Type

Stored in the profile option, Exchange Rate Type Default (ZCA_COMMON_RATE_TYPE)

  • Configured rate type.

  • Passed if there is a requirement to reevaluate the conversion rate against a different rate type.

  • If no value is passed, the program uses the profile option value.

Business Unit Organization ID

No default

Leave blank, and all business units are targeted. Otherwise, provide the specific business unit ID.

Number of Opportunities per Database Update

500

Oracle recommends that you leave this parameter at the default value or blank (and program uses default value).

Last Batch Job Run Time Stamp

See Description column

This parameter can be used for batch program reruns. When a few opportunities have failed, the log reflects all the failed opportunities, as well as provides a time stamp for "Start Batch Job Time Stamp". Enter this time stamp on the second run of the batch program to limit the scope of the batch job to only the failed opportunities.

Effective Date

System date

Date passed to general ledger (using an API) to calculate the conversion rate. The program doesn't validate that the date must be in the future, so, in effect, any date can be passed.

Impact of Process on Revenue Attributes

The Revalue Opportunity Currency process impacts several revenue attributes, as shown in this table.

Revenue Model Attribute Attribute Description/Function Batch Process Update
  • CRM_CURRENCY_CODE

  • CRM_CONVERSION_RATE_TYPE

  • CRM_CONVERSION_RATE

These attributes store the exchange rate between revenue line currency and the corporate currency, and are used to construct the materialized views for Closed, Pipeline and Unforecasted revenue metrics along the territory hierarchy. For lines in status category of Open, these attributes are updated whenever a revenue line is created or updated or whenever an opportunity with revenue is updated or saved.

  • The default for CRM_CURRENCY_CODE is taken from the profile option, Corporate Currency Default (ZCA_COMMON_CORPORATE_CURRENCY).

  • The default for CRM_CONVERSION_RATE_TYPE is taken from the profile option, Exchange Rate Type Default (ZCA_COMMON_RATE_TYPE).

  • CRM_CONVERSION_RATE is calculated using a GL API.

CRM_CURRENCY_CODE and CRM_CONVERSION_RATE_TYPE are updated based on a parameter to the batch program. If these two parameters are passed in, the program uses them to update the revenue tables. If these values aren't passed in, the application retrieves the profile option values and updates the revenue tables with them.

REVN_AMT_CURCY_CODE

Currency of the revenue (summary or line)

Entered currency. Not updated.

  • CONVERSION_RATE_TYPE

  • CONVERSION_RATE

These attributes store the exchange rate between revenue line currency and the summary revenue (opportunity level) currency and are used to convert the revenue line amounts to opportunity level currency. For lines in a status category of Open, these attributes are updated whenever the revenue is created or updated or whenever an opportunity with revenues is updated or saved.

  • CONVERSION_RATE_TYPE is updated based on a parameter to the batch program.

  • CONVERSION_RATE is updated. Changes if corporate rate types change. Rate is obtained using (conversion_rate_type, line_currency_code, summary_currency_code, and system date).

  • REVN_AMT

  • DOWNSIDE_AMT

  • UPSIDE_AMT

For summary revenue amounts, these amounts are calculated as the sum of line revenue amounts. These amounts are converted to the opportunity-level currency before calculating the sum. The exchange rate stored in the CONVERSION_RATE attribute is used to perform the conversion.

  • Line revenue isn't updated.

  • Summary revenue is recalculated.

LAST_UPDATE_DATE

WHO column

Updated.

USER_LAST_UPDATE_DATE

Functional WHO column

Not updated.

You are required to enter the daily rates for currency conversion from Great Britain pounds sterling (GBP) to United States dollars (USD) for 5 days.

To load rates using the Create Daily Rates Spreadsheet, you must first install Oracle ADF Desktop Integration client software. Oracle ADF Desktop Integration is an Excel add-in that enables desktop integration with Microsoft Excel workbooks. You can download the installation files from the Tools work area by selecting Download Desktop Integration Installer.

Entering Daily Rates

  1. From the General Accounting work area, select the Period Close link.

  2. From the Tasks panel, click the Manage Currency Rates link.

    Use the Currency Rates Manager page to create, edit, and review currency rate types, daily rates, and historical rates.

  3. Click the Daily Rates tab.

    Use the Daily Rates tab to review and enter currency rates.

  4. Click the Create in Spreadsheet button.

    Use the Create Daily Rates spreadsheet to enter daily rates in a template that you can save and reuse.

  5. Click in the From Currency field. Select the GBP - Pound Sterling list item.

  6. Click in the To Currency field. Select the USD - US Dollar list item.

  7. Click in the Conversion Rate field. Select the Spot list item.

  8. Click in the From Conversion field. Enter a valid value: 10/2/2017.

  9. Click in the To Conversion Date field. Enter a valid value: 10/6/2017.

  10. Click in the Conversion Rate field. Enter a valid value: 1.6.

  11. Click Submit and click OK twice.

  12. Review the Record Status column to verify that all rows were inserted successfully.

  13. Save the template to use to enter daily rates frequently. You can save the spreadsheet to a local drive or a shared network drive.

  14. Optionally, edit the rates from the Daily Rates user interface or resubmit the spreadsheet.

You're required to change today's daily rates that were already entered. The rates you're changing are for currency conversion from Great Britain pounds sterling (GBP) to United States dollars (USD) for your company InFusion America.

Currency conversion rates were entered by an automatic load to the Daily Rates table. They can also be entered through a spreadsheet.

Updating Currency Rates

  1. Navigate to the Period Close work area.

    Use the Period Close work area to link to close processes and currency process.

  2. Click the Manage Currency Rates link.

    Use the Currency Rates Manager page to create, edit, and review currency rate types, daily rates, and historical rates.

  3. Click the Daily Rates tab.

    Use the Daily Rates tab to review and enter currency rates.

  4. Click the From Currency list. Select the GBP - Pound Sterling list item.

  5. Click the To Currency list. Select the USD - US Dollar list item.

  6. Enter the dates for the daily rates that you are changing. Enter today's date.

  7. Click the Rate Type list. Select the Spot list item.

  8. Click the Search button.

  9. Click in the Rate field. Enter the new rate of 1.7 in the Rate field.

  10. Click in the Inverse Rate field. Enter the new inverse rate of 0.58822 in the Inverse Rate field.

  11. Click the Save button.

Maintain different conversion rates between currencies for the same period using conversion rate types. The following conversion rate types are predefined:

You can use different rate types for different business needs. During journal entry, the conversion rate is provided automatically based on the selected conversion rate type and currency, unless the rate type is User. For User rate types, you must enter a conversion rate. You can define additional rate types as needed. Set your most frequently used rate type as the default. Conversion rate types can't be deleted.

Assign conversion rate types to automatically populate the associated rate for your period average and period end rates for the ledger. For example, you can assign the conversion rate type of Spot to populate period average rates, and the conversion rate type of Corporate to populate period end rates. Period average and period end rates are used in translation of account balances.

Conversion rate types are used to automatically assign a rate when you perform the following accounting functions:

  • Convert foreign currency journal amounts to ledger currency equivalents.

  • Convert journal amounts from source ledgers to reporting currencies or secondary ledgers.

  • Run revaluation or translation processes.

When creating conversion rates, decide whether to:

  • Enforce inverse relationships

  • Select pivot currencies

  • Select contra currencies

  • Enable cross rates and allow cross-rate overrides

  • Maintain cross-rate rules

Enforce Inverse Relationships

The Enforce Inverse Relationship option indicates whether to enforce the automatic calculation of inverse conversion rates when defining daily rates. The following table describes the impact of selecting or not selecting the option.

Action Results

Selected

When you enter a daily rate to convert currency A to currency B, the inverse rate of currency B to currency A is automatically calculated and entered in the adjacent column. If either rate is changed, the application automatically recalculates the other rate.

You can update the application calculated inverse rate, but once you do, the related rate is updated. The option enforces the inverse relationship is maintained but doesn't prevent you from updating the rates.

Not Selected

The inverse rate is calculated, but you can change the rate and update the daily rates table without the corresponding rate being updated.

Select Pivot Currencies

Select a pivot currency that's commonly used in your currency conversions. A pivot currency is the central currency that interacts with contra currencies. For example, you set up a daily rate between the US dollar (USD) and the Euro currency (EUR) and another between the USD and the Canadian dollar (CAD). USD is the pivot currency in creating a rate between EUR and CAD. EUR and CAD are the contra currencies. Select the pivot currency from the list of values which contains those currencies that are enabled, effective, and not a statistical (STAT) currency. The description of the pivot currency is populated automatically based on the currency definition.

If you want the application to create cross rates against a base currency, define the base currency as the pivot currency. Selected pivot currencies can be changed in the Rate Types page.

Select Contra Currencies

Select currencies available on the list of values as contra currencies. The available currencies are those currencies which are enabled, effective, not STAT currency, and not the pivot currency selected earlier. The description of the contra currency is populated automatically based on the currency definition. Add or delete contra currencies in the Contra Currencies region of the Rate Types page.

Enable Cross Rates and Allow Cross Rate Overrides

Check the Enable Cross Rates check box to calculate conversion rates based on defined currency rate relationships. General Ledger calculates cross rates based on your defined cross rate rules. Associate your cross rate rules with a conversion rate type, pivot currency, and contra currencies. Cross rates facilitate the creation of daily rates by automatically creating the rates between contra currencies based on their relationship to a pivot currency. If the Enable Cross Rates option is deselected after entering contra currencies, the application stops calculating cross rates going forward for that particular rate type. All the earlier calculated cross rates for that rate type remain in the database unless you manually delete them.

For example, if you have daily rates defined for the pivot currency, USD to the contra currency, EUR, and USD to another contra currency, CAD, the application automatically creates the rates between EUR to CAD and CAD to EUR. You don't have to manually define the EUR to CAD and CAD to EUR rates.

Select the Allow Cross Rates Override check box to permit your users to override application generated cross rates. If you accept the default of not selected, the application generated cross rates can't be overridden.

Maintain Cross Rate Rules

Define or update your cross rate rules at any time by adding or removing contra currency assignments. Add a contra currency to a cross rate rule and run the Daily Rates Import and Calculation process to generate the new rates. If you remove a cross rate rule or a contra currency from a rule, any cross rates generated previously for that contra currency remain unless you manually delete them. Changes to the rule aren't retroactive and don't affect previously stored cross rates. The Cross Rate process generates as many rates as possible and skips currencies where one component of the set is missing.

Note: With a defined web service that extracts daily currency conversion rates from external services, for example Reuters, currency conversion rates are automatically updated for the daily rates and all cross currency relationships.