Multi-Currency Conversion Constant Change

[jatemple]

I have to merge another company's JDE files into ours. The issue is that we use multipliers for currency conversion (method Y from constants) and the other company uses divisors (method Z). Peoplesoft offers this in the KG: 'If the multi-currency conversion value is changed, support in resolving the resulting issues will require the assistance of a client manager and billable field personnel.' but nothing else. Any ideas on how to approach this conversion?

 

[ccornagg]

In Europe was "quite normal" to change multicurrency conversion method from Y (Multiplier) to Z (Divisor) after Euro Conversion stuff.

This should sound like a "Legal" constraint since old currencies (see for example ITL - BEF - FRF - DEM) were managed by International Stock Exchange with a "multiplier logic" ... while Euro currency official rates are based on 1 Euro (thus "divisor logic").

Using divisor instead of multiplier (and vice-versa) will lead to lack of precision / rounding issues ... and this is the reason why it's (IMHO) important to carefully evaluate which is the correct setup in a big environment (see multicompany setup with different base currencies).

A very rough approach on changing multicurrency conversion method is to calculate the reverse Currency Rate ... thus your CRR field should be equal to 1/CRR ...

But before evaluating a general constant currency conversion method change (see CRYR field) it's important to know that now JDE is able to manage both multiplier and divisor logic at the same time using "no-inverse rule" setup. It's an Euro enhancement (see P0015 - Form - Advanced Setup) that allow you to override general constant setup: Y or Z setup will be driven by Currency Code relations (see F00151) instead of from general constant (one per each environment).

Hope this helps,

Carlo

 

[Mike Dupaix]

You would need to restate your auxilliary ledgers (CA, XA, ZA) from AA. These are where the translated costs reside. You would also need to repopulate the historic rates for the information you would need to restate.

Another alternative would be to remove the historic rates (from reprocessing against any comany) and only restate the current year. This would minimize the changes.

jatemple <[email protected]> wrote:
I have to merge another company's JDE files into ours. The issue is that we use multipliers for currency conversion (method Y from constants) and the other company uses divisors (method Z). Peoplesoft offers this in the KG: 'If the multi-currency conversion value is changed, support in resolving the resulting issues will require the assistance of a client manager and billable field personnel.' but nothing else. Any ideas on how to approach this conversion?

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