Professional Documents
Culture Documents
Contact Us Below are some key terms and concepts that you encounter when you use
Oracle's PeopleSoft Financials multicurrency applications. We've made an
Send us your suggestions effort to use these terms consistently to coincide with generally accepted
accounting terms and Financial Accounting Standards Board (FASB) rules.
Please include release numbers for the
PeopleTools and applications that you are
using. Types of Currency
Currency refers to the denomination of a monetary transaction. PeopleSoft
Follow Us applications use a currency code to identify and track individual currencies.
Though the system does not require it, we suggest that you use the
International Standards Organization (ISO) currency codes supplied with
the application. You may use an unlimited number of currencies in
PeopleSoft applications.
Base Currency The base currency is the primary currency used for a
business unit, and is sometimes referred to as the
unit's book currency. A business unit can have one and
only one base currency. This is generally the local
currency for the organization; however, accounting
rules or other circumstances might dictate otherwise.
In PeopleSoft Payables, you assign a base currency to
each business unit on the General Ledger Definition -
Definition page. PeopleSoft Payables business units
1 of 8 29-08-2017, 18:35
Understanding Multiple Currencies in PeopleSoft Payables https://docs.oracle.com/cd/E39583_01/fscm92pbr0/eng/fscm/fapy/conce...
Currency Calculations
The system performs several calculations when it works with multicurrency
transactions.
2 of 8 29-08-2017, 18:35
Understanding Multiple Currencies in PeopleSoft Payables https://docs.oracle.com/cd/E39583_01/fscm92pbr0/eng/fscm/fapy/conce...
Related Links
Defining General Ledger Business Units
3 of 8 29-08-2017, 18:35
Understanding Multiple Currencies in PeopleSoft Payables https://docs.oracle.com/cd/E39583_01/fscm92pbr0/eng/fscm/fapy/conce...
Note: If you use a rate type on the payment that is different from the
rate type on the voucher, realized gain and loss may occur.
Related Links
Completing Voucher Attributes
Scheduling and Creating Voucher Payments for Online Vouchers
Payment Selection
From a multicurrency perspective, PeopleSoft Payables determines the
amount of a given currency required to pay a scheduled payment. The
payment currency does not have to be the same as the voucher
transaction currency. In fact, the payment currency can be in any currency
that you have set up for the bank. You can either accept the default or
select another valid currency code.
Payment Creation
During payment creation, the system converts the voucher transaction
currency to the payment transaction currency for the payment. It converts
the payment transaction currency to the voucher base currency and the
bank base general ledger currency for posting. The amounts form the basis
of realized gain and loss accounting entries created in payment posting.
PeopleSoft Payables supports checks, automated clearing house (ACH)
payments, direct debits, wire transfers, electronic funds transfers (EFT),
drafts, GIRO, letters of credit, and bank transfers. The Pay Cycle
Application Engine process (AP_APY2015) consists of payment selection
and payment creation. Output processes print checks and create files.
The payment creation process populates the payment amount and bank
base amount of the payment. The payment table also holds the
corresponding currency codes and rates. The check print process
accesses the currency code table to access symbols and descriptive
information to print on the check and remittance advice.
The Trial Payment Register, the Payment Register, and the Payment
Forecast reports all reflect multicurrency payments.
4 of 8 29-08-2017, 18:35
Understanding Multiple Currencies in PeopleSoft Payables https://docs.oracle.com/cd/E39583_01/fscm92pbr0/eng/fscm/fapy/conce...
Payment Posting
The Payment Posting Application Engine process (AP_PSTPYMNT)
creates accounting entries that relieve liabilities and record payments, as
well as discounts taken or lost, VAT, withholding and realized gains and
losses. The Payment Posting process also creates accounting entries
resulting from canceled payments (void and stop checks). The system
calculates the exchange rate gain or loss by subtracting the
BASE_CURRENCY at payment time from the BASE_CURRENCY at
voucher entry time. However, if the voucher's transaction currency is
different from the payment's transaction currency, the gain or loss is an
overall gain or loss.
When the Voucher Transaction currency and the Payment Transaction
currency are not equal, and you use the General Ledger Balance By All
Currency, the Payment Posting process will automatically generate
additional entries to balance by Foreign currency. The amounts will be
posted to the RSAF (Rounding Suspense for Foreign) account and the
system will use the ChartField values that were established on the
Accounting Entry Template.
Image: Reviewing Exchange Rate Gain or Loss process flow
Exchange rate gain or loss process flow.
5 of 8 29-08-2017, 18:35
Understanding Multiple Currencies in PeopleSoft Payables https://docs.oracle.com/cd/E39583_01/fscm92pbr0/eng/fscm/fapy/conce...
Related Links
Holiday/Currency Options Page
Running and Managing Pay Cycles
6 of 8 29-08-2017, 18:35
Understanding Multiple Currencies in PeopleSoft Payables https://docs.oracle.com/cd/E39583_01/fscm92pbr0/eng/fscm/fapy/conce...
Related Links
Payables Definition - Definition Page
Performing the PS/AP Revaluation Process
The Multibook feature supports multiple base currencies, each in the form
of a ledger, defined for a business unit. Optionally, you can post a single
transaction to all base currencies (all ledgers) or to only one of those base
currencies (individual ledgers).
With the Multibook feature, several ledgers are grouped together within a
ledger group. Ledgers within the group share the same physical structure,
but each ledger can have its own base currency. The ledger group controls
how transactions post to all ledgers within the group or to an individual
ledger. The system automatically converts transactions to the applicable
base currency and then posts to the corresponding ledger. This gives you
full, drill-down support and cross-currency comparisons at both the
summary and transaction levels.
Enable the Multibook feature on the Installation Options - Overall page, by
selecting the Create Multibook Accounting Entries in Subsystems check
box. If this check box is selected, and if your ledger group is set up for
secondary ledgers, the PeopleSoft Payables posting processes and
revaluation process create the accounting entries for those ledgers.
However, if this check box is not selected, the PeopleSoft Payables posting
processes and revaluation process create only the primary ledger entries.
The Journal Generator process creates the secondary and translate ledger
entries.
Set up ledger groups on the Ledger Groups - Definition page.
The calculations for secondary ledgers are dependent upon whether you
are using Translation or Non-Translation ledgers:
7 of 8 29-08-2017, 18:35
Understanding Multiple Currencies in PeopleSoft Payables https://docs.oracle.com/cd/E39583_01/fscm92pbr0/eng/fscm/fapy/conce...
Related Links
Installation Options - Products Page
Setting Up and Using Multibook Ledgers
Ledger Group Page
Multibook Ledgers Using Entry Events
Copyright 1992, 2013, Oracle and/or its affiliates. All rights reserved.
8 of 8 29-08-2017, 18:35