Configure Revenue Currency Parameters

You can prioritize constrained supply for product demands that generate the most revenue in currency in a sales and operations plan.

When available supply is less than demand, the planning process prioritizes supply allocation to the product categories with higher global revenues to maximize overall enterprise revenue. To configure the revenue currency parameters, navigate to the Supply: Advanced Options dialog box, General tab in plan options.

When you configure revenue currency parameters, the planning process converts the item selling prices by organization from local currency to base currency for planning revenue in currency. Revenues of product categories priced in the local organization currencies of their respective countries can be considered uniformly by converting the local currencies into one base currency using these currency conversion rates. Planning collects currency conversion rates that don't vary by time. Therefore, the planning process uses a single consistent conversion rate to convert from a local currency to a base currency across the plan horizon.

Note: To convert from a local currency to a base currency, you must first define the currency for an organization. Use the Maintain Supply Network Model task to verify that the Currency column is specified for the organizations used in your sales and operations plan. Monitor the Review Plan Messages page to check for setup issues related to currencies and conversion rates.

For external source systems, load currencies and conversion rates by using the file-based data import process. Use the Currency, Currency Conversion Type, and Currency Conversion tabs in the Supply Chain Planning Currencies file (ScpCurrencyImportTemplate.xlsm).

You can create what-if scenarios to simulate future changes in price to determine the global impact and risk on your supply chain. Simulate changes in price by editing the Adjusted Price measure and then rerun the aggregate plan with the data refresh option Do not refresh with current data selected. The price adjustments are made in the local currency, but converted to base currency when running the plan to plan revenue in one currency. At the end of the plan run, revenue is output in the local currency, even though the base currency was considered for the fulfillment of end item demands. This process ensures that there is consistent reporting of revenue and costs by organization in local currencies.

Perform the following steps to configure the planning process for currency conversion in your sales and operations plan.

1. In an open sales and operations plan, navigate to the Plan Options page, Supply tab, and click the Advanced Options button.

2. In the Supply: Advanced Options dialog box, General tab, expand the Revenue Currency Parameters section.

3. Select the Consider currency conversion rates to plan revenue check box.

   Selecting this check box instructs the planning process to use a single base currency to prioritize demand revenue in a constrained plan rather than planning revenue for each organization in the local currency.

4. Select the conversion type, which contains currencies and conversion rates between currencies.

5. Select the base currency code. This code is for the base currency used to plan revenue for constrained demand in a single currency, which can be different than the local currency defined for an organization.

   Click Done.