How to Make PeopleSoft 9.2 Multi- Work for You

Session ID: 101460

Prepared by:

Millie Babicz Managing Director SpearMC Consulting

@SpearMC Agenda

• About SpearMC • Multi-Currency Configuration • Multi-Currency Journals • Re-Measurement • General Ledger Adjustments • Reporting • Multiple GAAPS

2 About SpearMC

3 Your Presenter

Millie Babicz, CPA Managing Director [email protected] 866-SPEARMC x802 www.SpearMC.com • ERP Implementation Specialist at KPMG for 13 years before joining SpearMC in 2007 • PeopleSoft Financials, Financial Control and Reporting Expert • Certified PeopleSoft v9.1 Financials • 20 Years Experience in Project / Program Management

4 About SpearMC

Founded in 2004, SpearMC is a technology and professional services firm specializing in

. PeopleSoft Financials and . ERP Architecture and Supply Chain Management Application Development . PeopleSoft Human Capital . Project and Program Management and Payroll Management (PMO) . Maximo Enterprise Asset . Change Management Management . ERP Training . Oracle Business Intelligence . Mobile Technology

5 About SpearMC Offices in Chicago, Denver, Oklahoma City, Phoenix, Seattle and San Francisco

. We focus on local market delivery and capability development in line with industry focus areas unique to the regions we serve.

. Our local and well-connected network of top-tier business analysts, technical leads, developers and project managers keep travel cost to a minimum.

6 About SpearMC

Each member of our Leadership Team leverages over 20 years of experience in Technology, Financial and Business Transformation.

7 About SpearMC

Industry focus areas include: • Energy • Transportation • Healthcare/Biotech • Government • Media/Technology • Consumer Products • Financial Services • Higher Education

8 About SpearMC Oracle Gold Partner since 2008: . PeopleSoft Specialization . Applications Reseller . Hardware Reseller

IBM Advanced Partner:

9 Multi-Currency Configuration

10 Multi-Currency Configuration

Common Terms

• Currency Codes – (GBP) – Mexican Pesos (MXN) • Exchange Rates • Market Rates (exchange rates, interest rates, stock price, etc.) • Currency Rate Types (Average, Current, Historical, etc.) • Base Currency (each BU must have one base currency) • Foreign Currency (any currency that is not base currency • Reporting Currency (any currency you use for reporting)

11 Multi-Currency Configuration

Market Rate

12 Multi-Currency Configuration

Loading Market Rates

• PeopleSoft comes delivered with standard currency codes, however, if a particular code does not exist then: ‒ Insert currency into CURRENCY_CD_TBL ‒ Insert currency quotation method into CURR_QUOTE_TBL ‒ Insert market rate definition into RT_RATE_DEF_TBL • Update Rates for existing currency code: ‒ Insert market rate for current effective period into RT_RATE_TBL

13 Multi-Currency Configuration

Loading Market Rates

Rate File

New CURRENCY_CD_TBL Currency CURR_QUOTE_TBL YES NO

RT_RATE_TBL RT_RATE_DEF_TBL

14 Multi-Currency Configuration

Currency Quotation Method • Indirect ‒ Determine whether you want the rates for a currency pair quoted indirectly. ‒ For example, in converting United States dollars (USD) to Swiss francs (CHF), an indirect quote would indicate that USD x.xxxx = CHF 1 • Direct ‒ Determine whether you want the rates for a currency pair quoted directly. ‒ For example, in converting United States dollars (USD) to Swiss francs (CHF), a direct quote would indicate that USD 1 = CHF x.xxxx. In this case, Swiss francs are quoted directly against the United States dollar

15 Multi-Currency Configuration

Quotation Method

16 Multi-Currency Configuration

Currency Precision Rounding • Currency dictates the precision of monetary amounts. • For example, United States dollar amounts have two digits to the right of the decimal and have none. • PeopleSoft software addresses currency precision as follows: ‒ PeopleSoft delivers currency sensitive amount fields with a standard length of 23.3 (23 digits to the left of the decimal point and 3 digits to the right of the decimal point) ‒ By default, PeopleSoft software rounds all currency sensitive amount fields to the currency precision of the associated currency. This action is a PeopleTools option that you can deactivate. ‒ All numbers on SQR reports are currency sensitive. For reporting with Crystal and PS/nVision, the display is equal to the field precision, but you can increase the number of decimals. ‒ The journal entry screen will show an error if a user enters more decimal places than specified on the currency code page

17 Multi-Currency Configuration

Currency Precision

. Currency precision ranges from zero decimal points to three decimal points per ISO standard . The journal will be in error if more decimal places than specified on the currency code page are entered

18 Multi-Currency Configuration

Currency Triangulation

. Cross currency triangulation allows you to convert two currency pairs, which do not exist as standard pairs, using a third currency as a reference

19 Multi-Currency Configuration

Currency Controls Controls that are defined for a ledger group override those defined for a business unit, and controls selected for a source override both a ledger group and a business unit.

• Business Unit Establish Base Currency Currency Balance Options • Ledger Group Rounding Adjustment Option • Journal Source

20 Multi-Currency Configuration

Business Unit

21 Multi-Currency Configuration

Ledger

22 Multi-Currency Configuration

Journal Source

23 Multi-Currency Journals

24 Multi-Currency Journals

GL Currency Mapping

25 Multi-Currency Journals

Update Currency Effective Date at Header Level

26 Multi-Currency Journals

Journal Line – Primary Ledger

• Adjust Amount or Rate for Primary Ledger (ACT_LOC)

• If you change either the Amount, Base Amount or Rate, you can have the system calculate one of the three by changing the Calculate value or just leave the System Rule default

27 Multi-Currency Journals

Ledger • You can define multiple ledgers for various multi-national reporting

• Ledgers in Sync ‒ When you enter a two line journal entry for a ledger group that contains two ledgers, the system creates two additional lines.

28 Multi-Currency Journals

Journal Line – Secondary Ledger

• Adjust Base Amount or Rate for Secondary Ledger (SEC_USD) to update the translated values

29 Multi-Currency Journals

Keep Ledgers in Sync

• The following query shows journal lines generated for the two ledgers in this example: ‒ ACT_LOC is the primary ledger ‒ SEC_USD is the translate ledger, which translates transactions in real time

30 Multi-Currency Re-Measurement

31 Multi-Currency Re-Measurement

Revaluation • You may need to revalue the base currency of the balance sheet accounts that you maintain in foreign to reflect changes in value due to fluctuations in exchange rates • process adjusts the base currency value of the account balances by creating adjusting entries for the accounts being revalued. • The process creates corresponding entries for any gain or loss that results from the revaluation. • Revaluation takes place at the end of each accounting period for all Asset and Liability accounts prior to translation. ‒ Ledger: ACT_LOC (in this example) ‒ Timespan: BAL ‒ Rate Type: CRRNT

32 Multi-Currency Re-Measurement

Note: Same $87.67 transaction is now worth $100.88 Revaluation Example

33 Multi-Currency Re-Measurement

Revaluation at Subsystem • Re-measurement of gains/losses at ledger, customer and vendor levels • Accounts Payable ‒ The PS/AP Revaluation process finds all unpaid, posted vouchers for the specified business units as of the specified date whose transaction currency is not the same as the base currency of the general ledger business unit. ‒ For each unpaid voucher, it uses the specified and calculates a revaluation amount. ‒ The accounting entry consists of an unrealized gain or loss entry with a matching offset on the payables account.

34 Multi-Currency Re-Measurement

Translation • For reporting purposes, you can translate base currency balance of foreign entity to your reporting currency. • You can maintain a secondary ledger (SEC_USD) for real time translation at the effective CRRNT rate. • Translation takes place at the end of each accounting period for all accounts after revaluation. • Translation only occurs for Business Units with non-USD base currency. • The process creates corresponding entries for any gain or loss that results from the translation. ‒ Ledger: SEC_USD (in this example) ‒ Timespan: BAL (Balance Sheet accounts) PER (Income Statement accounts) ‒ Rate Type: CRRNT (Balance Sheet accounts) AVG (Income Statement accounts)

35 Multi-Currency Re-Measurement

Translation Example

36 Multi-Currency GL Adjustments

37 Multi-Currency GL Adjustments

Scenario 1 - Adjust Original Base Amount

• Adjustment in Period 2

• Since the original transaction amount never goes to zero, you will always have a “revaluation adjustment” from month to month

38 Multi-Currency GL Adjustments

Scenario 1 - Adjust Original Base Amount

• Adjustment in Period 2

• Since the original transaction amount never goes to zero, you will always have a “revaluation adjustment” from month to month

39 Multi-Currency GL Adjustments

Scenario 2 - Adjust Translated Amount • Adjustment in Period 2

• Since the original transaction amount never goes to zero, you will always have a “revaluation adjustment” from month to month • But now you will have revaluation for GBP and USD amounts

40 Multi-Currency GL Adjustments

Scenario 2 - Adjust Translated Amount • Adjustment in Period 2

• Since the original transaction amount never goes to zero, you will always have a “revaluation adjustment” from month to month • But now you will have revaluation for GBP and USD amounts

41 Multi-Currency GL Adjustments

Scenario 3 - Adjust Original Transaction Amount • Adjustment in Period 2 – using same rate

• Adjustment in Period 2 – using current rate

• You will have a temporary residual until “revaluation” is processed

42 Multi-Currency Reporting

43 Multi-Currency Reporting

GL Currency Mapping

44 Multi-Currency Reporting

Reporting from GL Ledger Table • Transaction Amount (POSTED_TRAN_AMT) ‒ Can be in any currency code ‒ Serves as the foreign amount when the currency code is different then the base currency code defined for that Business Unit • Base Amount (POSTED_BASE_AMT) ‒ Only one currency code can be defined for a Business Unit • Posted Total Amount (POSTED_TOTAL_AMT) ‒ Any amount that is posted to Ledger, can be in foreign currency or base currency ‒ When used in reporting, you will always have to specify the currency code

45 Multi-Currency Reporting

Ledger Example

• For multi-currency ledger reporting it is safest to use Posted Base Amt • If you used Posted Total Amt, you always have to make sure to designate the correct currency

46 Multi-Currency Reporting

nVision Report • Layout Tips ‒ Use Based Amount (POSTED_BASE_AMT) so you won’t have to identify the currency ‒ Include all currency codes as nVision automatically defaults to USD if not specified

47 Multiple GAAPS

48 Multiple GAAPS

Ledger Approach Book Code Approach Local GAAP Local IFRS Multi- . L = Local Book Code GAAP Common Adjustmen GAAP . C = Corp Book Code Adjustmen ts Ledger . B = Common Book Code ts Single ledger holds transactions for all IFRS GAAPs; Book Code ChartField used to identify transactions; Ledger Code is used to produce the Local GAAP and IFRS reports.

Transactions are posted to Ledger Code - LOCAL the respective ledgers. nVision is used to produce Local Common Only reports for Local GAAP and IFRS.

IFRS Ledger Code = IFRS Only

ACCOUN ALT BU T ACCT

Corp GAAP Local GAAP

49 Multiple GAAPS

Ledger Approach

• The Ledger approach allows users to define different or multiple ledgers to suit the organization’s structure. • The user can have one ledger that addresses common transactions. • A second ledger that groups IFRS adjustments. • A third ledger for entering local GAAP adjustments. • The user can then create reports using nVision and Tree Manager to group the ledgers as appropriate.

50 Multiple GAAPS

Book Code Approach • You can use Book Code to handle multiple GAAP requirements within the same ledger. • The Book Code ChartField can identify a transaction as either local GAAP, IFRS or both. • This allows items that affect both local GAAP and IFRS simultaneously to be entered only once rather than duplicated to each associated ledger. • Users can then use Ledger Codes to define what transactions (based on Book Codes) to use in their reports. • This allows organizations to ensure consistency with accounting and data gathering across the world, while at the same time recording transactions in compliance with local regulation.

51 Multiple GAAPS

Book Code

• If you activate the book code, you must specify a book code for each account value. ‒ You can attach these book codes to accounts as attributes ‒ A unique account value must be created for each book code ‒ Book code appears as a read only field on the journal entry page • Can override at time of Journal Entry ‒ The Allow Book Code Override option that is set on the ChartField Account page ‒ Using this method, you can associate any of your book codes with the same account value to record related amounts in the same ledger

52 Multiple GAAPS

Ledger Code • Use this page to create ledger codes • Assign them to the applicable book codes to define subsets that segregate various accounting treatments of transactions

53 Multiple GAAPS

Book Code Approach

• You can enter and maintain both a statutory (local) account value and a corporate (internal) account value at the detail transaction level within General Ledger, as well as within subsystems.

54 Questions?

55 SpearMC Online Resources

56 SpearMC Online Resources

• SpearMC online Tools & Resources can be found at www.spearmc.com

57 Thank You.

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