Working With Currencies and Market Rates

This chapter provides an overview of currencies and market rates and discusses how to:

Define currencies.
Define currency quotation methods.
Define market rates.
Calculate cross and reciprocal rates.
Use the Currency Exchange Calculator.

Understanding Currencies and Market Rates

PeopleSoft offers a core set of objects (fields, tables, work records, pages, and PeopleCode functions) and a recommended set of standard techniques and formulas to support a common approach to converting currency throughout PeopleSoft applications, and for defining and storing market rates. Market rate is a generic term for a currency exchange rate, an interest rate, or a future rate, for example.

In this section, we discuss:

Currency and market rate tables.
Conversion factor fields and the visual rate.
Application-specific requirements for currency conversion.

Understanding Currency and Market Rate Tables

The following tables store currency and market rate data:

CURRENCY_CD_TBL

Stores currency code data.
CURR_QUOTE_TBL

Stores currency quotation method data.
RT_INDEX_TBL

Stores market rate index data.
RT_TYPE_TBL

Stores rate type data.
RT_RATE_TBL

Stores market rate data.

Understanding Triangulation

Triangulation is the process by which a conversion between two currencies takes place by way of a third reference currency. This process may be used in hyperinflationary environments, where all conversions to the local currency are done by way of a stronger, more stable currency. This process may also be used when a country is undergoing a currency revaluation.

To support triangulation, PeopleSoft provides a means to define that you want a currency pair to triangulate through a fixed reference currency. The actual conversion process is done in a two-step procedure in which the from-currency amount is first converted to the reference currency and then to the destination currency, using the appropriate exchange rates. Supporting triangulation also affects the user interface, as there are now two or possibly three exchange rates that are relevant to the conversion. When viewing a triangulated conversion at a detailed level, users access three visual rates:

A rate for converting the from-currency to the reference currency.
A rate for converting the reference currency to the to-currency.
A cross rate indicating the rate that would be required to convert the from-currency directly into the to-currency.

The cross rate in a triangulated conversion is not typically maintained directly. The system enables you to maintain those non-triangulated rates that are components of the triangulated rate, then run a process to generate the triangulated exchange rate. However, you can override the cross rate, which causes one of the other exchange rate values to be recalculated to synchronize it with the overridden cross rate.

For example, suppose an implementation was using triangulation to convert from USD to FRF. You would directly maintain the visual rate from the USD to euros (1.25 in the example table) and rate from euros to FRF (6.8 in the example table). You could then run the EOP_RATECALC Application Engine process to derive the triangulated rate for converting from USD to FRF. The results are shown in the following table:

Currency Pair	Quote Method	Quote Units	Primary Visual Rate	RATE_MULT	RATE_DIV
USD to Euro	Indirect	1	1.25	1	1.25
Euro to FRF	Direct	1	6.8	6.8	1
USD to FRF	Direct/Triangulate/Euro	1	5.44	6.8	1.25

For performing the actual conversion, applications interpret the visual rates into RATE_MULT and RATE_DIV values based on the quotation method for the exchange, then use the RATE_MULT and RATE_DIV values stored in the Market Rates Data table in the currency conversion formula, either by accessing the values directly or by calling the ConvertCurrency PeopleCode function.

Note. For information on how a specific application supports maintenance of triangulated exchange rates, see the documentation for that application.

Understanding Conversion Factor Fields and the Visual Rate

Support for both direct and indirect currency quotations creates a potential for complex currency conversion formulas in applications. To avoid excess conditional logic in the conversion formula, PeopleSoft provides two fields to store the conversion factor, RATE_MULT and RATE_DIV. The rate that you enter is called the visual rate. This visual rate is generally stored in either RATE_MULT or RATE_DIV, based on the quote method. The quote units are stored in whichever field does not contain the visual rate. As a result, the formula for currency conversion remains consistent:

(from-currency / RATE_DIV) × RATE_MULT = to-currency

This formula is also used for currency conversion in PeopleCode programs for online processing, as well as in SQR and COBOL processes.

The following table shows a few basic examples of how visual rates are transformed into RATE_MULT and RATE_DIV, according to the quote method and quote units for the currency pair:

Currency Pair	Quote Method	Quote Units	Primary Visual Rate	RATE_MULT	RATE_DIV
USD to GBP	Indirect	1	1.6	1	1.6
GBP to USD	Direct	1	1.6	1.6	1
DEM to CHF	Indirect	100	119.335	100	119.335
CHF to DEM	Direct	100	119.335	119.335	100
USD to Euro	Indirect	1	1.25	1	1.25
Euro to FRF	Direct	1	6.8	6.8	1
USD to FRF	Direct/Triangulate/Euro	1	5.44	6.8	1.25
FRF to Euro	Indirect	1	6.8	1	6.8
Euro to USD	Direct	1	1.25	1.25	1
FRF to USD	Indirect/Triangulate/Euro	1	5.44	1.25	6.8

In all cases, the visual rate for a currency pair remains the same, regardless of the direction. This is consistent with business standards. For a direct quoted rate, you multiply by the visual rate; therefore the visual rate goes into RATE_MULT and 1 (or the quote units) goes into RATE_DIV. For an indirect quoted rate, you divide by the visual rate; therefore the visual rate goes into RATE_DIV and 1 (or the quote units) goes into RATE_MULT.

The following examples show indirect quotation, direct quotation with quote units, and triangulation:

100 USD to GBP (indirect) = (100 USD / 1.6) × 1 = 62.50 GBP

1000 CHF to DEM (direct with units) = (1000 CHF / 100) × 119.335 = 1193.35 DEM

100 USD to FRF (triangulate) = (100 USD / 1.25) × 6.8 = 544 FRF

Understanding Application-Specific Requirements for Currency Conversion

Each application that shows a visual rate on a page must have an application-specific work record to hold the visual rate and the PeopleCode associated with it; this can be an existing work record. The suggested name for the field is VISUAL_RATE. The work record should also have a field to store the original rate for purposes of tolerance checking.

The application also typically provides an application-specific table to store RATE_MULT and RATE_DIV values that are stored on the database.

Application-specific PeopleCode needs to format work record fields and call the common functions in various circumstances, such as RowInit or FieldChange on the currency or visual rate.

Defining Currencies

In this section, we discuss how to define currencies.

Page Used to Define Currencies

Page Name	Object Name	Navigation	Usage
Currency Code	CURRENCY_CD_TABLE	Depends on application.	Add and maintain currency codes. These currency codes are used to designate currencies throughout your PeopleSoft system.

Defining Currency Codes

Access the Currency Code page.

Status

Indicate whether the currency code is active or inactive. If you inactivate a currency code that is in use, existing transactions are unaffected. However, the currency code is unavailable for future selections.

Some PeopleSoft applications do not allow you to inactivate a currency code that is in use.

Currency Symbol

PeopleSoft delivers many currencies with a currency symbol such as $ for Australian dollar (AUD) or £ for British pound (GBP). You can enter new symbols for delivered currencies or for currencies that you might add.

Country

Select the code for the country from which the currency originates.

Note. PeopleSoft delivers fully populated country, state, and province code tables and updates these tables as national boundaries and designations change.

Decimal Positions

Enter the number of decimal positions that should appear in the notation for the currency. For example, there are two decimal positions for Australian dollars (500.00 AUD), but no decimal positions for Japanese yen (500 JPY).

Scale Positions

Enter the scale positions you want to round for this currency. This controls how many numbers appear to the left of the decimal when displayed. The data is actually stored with full precision in the database itself.

For example, if you want all million-dollar amounts displayed as the number of millions without the zeros, enter 6 as your scale position. In this case, 24,000,000 is displayed as 24, but is stored in the database as 24,000,000.

Defining Currency Quotation Methods

In this section, we discuss how to define currency quotation methods.

Page Used to Define Currency Quotation Methods

Page Name	Object Name	Navigation	Usage
Currency Quotation Method	CURR_QUOTE_PNL	Depends on application.	Set up and maintain a currency quotation method for each from-currency and to-currency pair.

Defining Currency Quotation Methods

Access the Currency Quotation Method page.

A currency quotation method, defined for an exchange rate, stores data that determines how the application interprets a visual rate entered by a user (or multiple visual rates, in the case of triangulated exchange rates) into the RATE_MULT and RATE_DIV values stored on the Market Rate Data table. Conversely, it also determines how the stored RATE_MULT and RATE_DIV values are interpreted into the visual rate displayed to the user.

The quotation method can be direct or indirect, and it can be non-triangulated or a triangulated conversion via a third reference currency. The currency quotation method also determines the quotation units of the from-currency.

See Understanding Conversion Factor Fields and the Visual Rate.

It is not necessary to define a currency quotation method for every exchange rate. If, during maintenance of market rates, no quotation method is found for an exchange rate, the page logic assumes these defaults:

The exchange rate is direct.
The quotation units are equal to 1.
The exchange rate is not triangulated.

Note. This use of default values supports backward compatibility with previous exchange rate data, including calculated reciprocal rates, if your implementation requires them.

Note. You can view the currency quotation method for an exchange rate on the Exchange Rate Detail page while working on the Market Rates page.

See Defining Market Rates.

Direct and Indirect	Indicate whether the rates for this currency pair are quoted directly or indirectly. For example, when defining a currency quotation method for USD and FRF: Select Direct if you want 1 USD to equal x.xxxx FRF. Select Indirect if you want x.xxxx USD to equal 1 FRF. Even currency quotation methods for currency pairs that triangulate must be classified as either direct or indirect. In this case, the value is used to display the calculated cross rate. Support for indirect and direct quotation methods allows applications to eliminate use of calculated reciprocal rates by using a single rate by which you either divide or multiply, depending on whether the conversion method is direct or indirect.
Quote Units	Enter a quote unit for the exchange rate, as is common business practice for some currencies. This field can have any value, but is usually a power of 10. Sometimes called scaling factors, quote units are often used to preserve more decimal precision. For example, the exchange rate between Swiss francs (CHF) and Deutsche marks (DEM) may be stated as 100 CHF = 119.335 DEM instead of 1 CHF = 1.19335 DEM.
Auto Reciprocate	Select to automatically create or update the rate for the reciprocal currency pair on the Market Rates page whenever an exchange rate is added or updated. For example, if you create a currency quotation method for USD to EUR. The reciprocal currency quotation method for EUR to USD is automatically created, regardless of this setting. When you create a rate for USD to EUR on the Market Rates page, the EUR to USD reciprocal rate is automatically created if this Auto Reciprocate option is selected for the currency pair. If the either rate for the currency pair is updated on the Market Rates page, the reciprocal rate is updated as long as the Auto Reciprocate option is selected for one of the currencies in the pair.
Triangulate	Select to triangulate conversions between this currency pair using a reference currency.
Reference Currency	Enter the reference currency for a triangulated conversion.
Primary Visual Rate	With triangulated currency pairs, there are three exchange rates to consider: The rate between the from-currency and the reference currency. The rate between the reference currency and the to-currency. The calculated cross rate between the from-currency and the to-currency. Select which of these three rates you want to be the primary visual rate. This is the rate displayed on the primary pages and reports. For online applications, other components of the rate can be viewed and modified on the Exchange Rate Detail page.
Allow Override	For triangulated currency pairs, select to enable users to override the cross rates on the Market Rates page and Exchange Rate Detail page.
Recalculate	If the Allow Override option is selected, select to indicate which of the two other rates should be recalculated to bring the triangle back into balance again. Because the triangulated rate is initially a calculated rate, if you allow it to be overridden, the rates used to initially calculate it must be recalculated.

Defining Market Rates

In this section, we discuss how to:

Define market rate indexes.
Define market rate types.
Create market rate definition.
Define market rates.
Access rate definition details.
Access exchange rate details.

Pages Used to Define Market Rates

Page Name	Object Name	Navigation	Usage
Market Rate Index	RT_INDEX_TBL	Depends on application.	Create market rate indexes, which provide a means of organizing market rates in the PeopleSoft system.
Rate Type	RT_TYPE_TBL	Depends on application.	Define rate types that further categorize market rates. Examples of rate types include current, commercial, floating, average, and historical.
Market Rate Definition - Rate Definition	RT_RATE_DEF_TBL	Depends on application.	Define tolerance limits for rates and determine what action occurs if a new rate falls outside the tolerance limit.
Market Rates	RT_RATE_PNL	Depends on application.	Maintain and view market rates. The fields available on the page vary depending on the rate category.
Rate Definition	RT_RATE_DEF_SEC	Select the Rate Definition link on the Market Rates page.	View market rate definition details, including the maximum variance and error handling definitions specified for the currency pair on the Rate Definition page.
Exchange Rate Detail	EXCH_RT_DTL	Click the Exchange Rate Detail button on the Market Rates page.	Access exchange rate detail information.

Defining Market Rate Indexes

Access the Market Rate Index page.

Market rate indexes are stored in the RT_INDEX_TBL table.

Index

Displays the key term for the highest level of organization for market rates in the application.

Rate Category

Select a general category for the market rate index, such as Exchange Rate, Commodity Price, or Interest Rate.

Default Exchange Rate Index

Select to indicate that the selected market rate index is the default exchange rate index. This field is available only if:

The Rate Category field is set to Exchange Rate.
No other index is currently defined as the default exchange rate index.

The Market Rates Index page does not ensure that a default market rate index has been defined. However, if no default has been defined, the Market Rate Default view does not return any data.

The Market Rate Definition Default view (RT_DEF_DFLT_VW) selects rows from the Market Rate Definition table that have a term of zero and an index defined as the default exchange rate index.

Defining Rate Types

Access the Rate Type page.

Rate types are stored in the RT_TYPE_TBL edit table. Rate types serve as categories within a market rate index. For example, some common types of exchange rates are official rate, spot rate, and free market rate.

Enter a description and short description to define each market rate type that you use.

Creating Market Rate Definitions

Access the Market Rate Definition - Rate Definition page.

Market rate definitions specify the valid term, currency, and other appropriate field combinations for market rates. For example, if you have a market rate definition for an exchange rate with a term of 30, a from-currency of CHF, and a to-currency of USD, you can enter a rate using this combination on the Market Rates page.

If you have not created a market rate definition on this page when you create the a market rate on the Market Rates page, the system automatically creates one for you using the default values of 2.5 percent maximum variance and warning message processing.

It is common for applications to support tolerance checking (against user-specified tolerances) in all places where exchange rates can be entered or overridden. With the introduction of indirect quotation methods and quote units, tolerance checking is even more critical to ensure data entry accuracy.

Note. The information you see on this page depends on the selected market rate index. For example, if you select an index associated with a rate category of Interest Rate, fields on this page display interest-related data.

From Currency Code	Enter the from-currency code with which you want to populate all From Currency fields on the page.
Refresh	Click to populate the From Currency field with the currency you selected in the From Currency Code field.
Term	Enter the desired term expressed in days. A zero term indicates that the spot rate = zero term. Only PeopleSoft Treasury uses non-zero terms; all other applications must use a zero term for spot rate.
From Currency	In addition to using the From Currency Code field to populate all From Currency field on this page, you can also manually enter the appropriate from-currency. This value is used with its associated To Currency field value as part of an exchange rate pair. When you use triangulation, include a definition row for each of the currency pairs involved in the triangulation.
To Currency	Enter the appropriate to-currency. This value is used with its associated From Currency field value as part of an exchange rate pair.
Currency	This field displays when you are working with a rate definition with a rate category set to Interest Rate. Select the currency for which you are creating an interest rate definition. The From Currency and To Currency fields do not display.
Day Count Basis	This field displays when you are working with an interest rate definition. Select an interest basis: 30/360 30E/360 Actual/360 Actual/365 Actual/Actual
Maximum Variance	Enter the percentage of variance that is allowed when a user maintains or overrides a market rate. If the change exceeds the tolerance, an error results. The default value is 2.50 (2.5%).
Error Type	Select the type of error that results when the defined maximum variance is exceeded during data entry. None. No error processing occurs and the new rate is used, even if it exceeds the maximum variance. Stop. Processing halts and the system prevents you from saving the new rate. Warning. This is the default value. A warning appears that you can ignore and proceed to save the new rate.

Defining Market Rates

Access the Market Rates page.

The data you enter on this page is stored in the RT_RATE_TBL table, which is the common repository for all types of market rates including exchange rates and interest rates.

This page is not editable if all the following are true:

The rate is triangulated.
The primary visual rate is the cross rate.
The Allow Override option is clear for the exchange rate’s quotation method on the Currency Quotation Method page.

Note. When working with interest rates, the From Currency Code and To Currency Code fields may contain the same field value.

Rate

Rate

Displays the visual rate. If you are working with a triangulated exchange rate, this field displays the primary visual rate, which is typically the cross rate, but can also be one of the other component rates of the triangle.

During online maintenance of market rates, you don’t view or change RATE_MULT and RATE_DIV values directly, but instead access this visual rate, which is calculated by page logic based on RATE_MULT, RATE_DIV, and the currency quotation method defined for the currency pair on the Currency Quotation Method page. The visual rate is stored temporarily on a page work record.

Exchange Rate Detail

Click to access the Exchange Rate Detail page, where you can view all three visual rates of a triangulated exchange rate.

If a quotation method has been defined for the currency pair and the Auto Reciprocate option for the currency quotation method is selected, then creating or maintaining a rate for a currency pair on this page automatically creates or updates the rate for the reciprocal currency pair. For example, if you change the USD-to-GBP rate, the GBP-to-USD rate is automatically updated. You can only auto-reciprocate currency pairs for which currency quotation methods have been defined on the Currency Quotation Method page.

See Defining Currency Quotation Methods.

Note. The results of updating the rate definition do not take effect until you save, close, and reopen the Market Rates page.

Accessing Exchange Rate Details

Access the Exchange Rate Detail page.

The primary record for this page is the Exchange Rate work record. For triangulated rates, you can update rate values for all three components of the triangulated rate.

Rate Quotation Basis	Displays the quotation basis for the exchange rate as defined in the Currency Quotation Method page.
Quote Units	Displays the quote units for the exchange rate as defined in the Currency Quotation Method page.
Triangulate	Displays the triangulation setting for the exchange rate as defined in the Currency Quotation Method page.
Reference Currency	For triangulated exchange rates, displays the reference currency used in the triangulated exchange.
Current Quote	Displays the current exchange rate used to convert the from-currency to the to-currency. For a direct, non-triangulated rate, this field displays quote units (or 1) to the left side of the equal sign and the visual rate on the right. For example: 1 USD = 1.40000000 CAD For an indirect, non-triangulated rate, this field displays the visual rate to the left of the equal sign and quote units (or 1) on the right. For example: 1.400000000 CAD = 1 USD For a triangulated rate, this field displays the two component rates of the triangle: the rate for converting the from-currency to the reference currency (USD to EUR) and the rate for converting the reference currency to the to-currency (FRF to EUR). For example: 1.25 USD = 1 EUR = 6.8 FRF
Historic Quote	If page logic determines that the exchange rate, as stored in the database, is inconsistent with the current quotation method, this field displays a quote based on the current quotation method, instead of the quotation method active on the rate effective date. Data provided in the historic quote field allows you to see how the exchange rate has changed over time, using a consistent quotation method, even if the quotation method has actually changed. For example, if you are viewing a historical rate where FRF was converted to USD directly using a calculated reciprocal rate of 1 FRF = 0.1470588 USD and the current quotation method for this currency pair is indirect, the conversion function recalculates the visual rate based on indirect quotation, that is 6.8000001 FRF = 1 USD. This field also displays a quote if the historic quote method was non-triangulated and the current quote method is triangulated. A historic quote is also displayed if you override a cross rate and bypass triangulation, because the exchange rate being used is inconsistent with the current quotation method. If the system determines that the exchange rate is consistent with the current quotation method, the field displays Not Applicable.
Exchange Rate	Displays a single visual rate for non-triangulated exchange rates, or all three component visual rates for triangulated exchange rates. The cross rate for triangulated exchange rates is editable only if the Allow Override option box is selected for the exchange rate on the Currency Quotation Method page.

Calculating Cross, Triangulated, and Reciprocal Rates

In this section, we discuss how to run the EOP_RATECALC Application Engine process to calculate cross, triangulated, and reciprocal rates.

Understanding the EOP_RATECALC process

Run the EOP_RATECALC process to calculate rates and update the market rates table.

The process performs three functions:

Generates cross rates for non-triangulated currency pairs.

For example, an organization subscribes to a rate service that provides all rates respective to USD. Starting with a USD to Canadian dollar rate and a USD to Mexican peso rate, the system can calculate a new Canadian dollar to Mexican peso cross rate.
Generates triangulated rates for triangulated currency pairs.

For example, the EUR to an EPC (euro participating currency) fixed rate has been established on the market rate table and a new EUR to USD rate has just been entered. Using this information, the process can create a new USD to EPC triangulated rate. The difference between triangulated rates and cross rates affects how the data is stored in the database. When calculating a cross rate, you actually create a new rate. When calculating a triangulated rate, the individual components of the source rates are stored on the target.
Generates reciprocal rates for those currency pairs that are not automatically reciprocated.

For example, using a USD to CAD rate as the source, the process calculates the CAD to USD reciprocal. If currency quote methods are in place, the visual rate remains the same and there is a difference in how the data is stored in the database (RATE_MULT and RATE_DIV are inverse). If currency quote methods are not used, the process actually calculates an inverse rate, meaning that the visual rates will differ.

Page Used to Calculate Cross, Triangulated, and Reciprocal Rates

Page Name	Object Name	Navigation	Usage
Cross/Reciprocal Rate Calc - Parameters (cross/reciprocal rate calculation – parameters)	EO_RATECALC	Depends on application.	Set run control parameters to run the EOP_RATECALC Application Engine process, which sets up cross, triangulated, and reciprocal rates.

Running the EOP_RATECALC Process

Access the Cross/Reciprocal Rate Calc - Parameters page.

Market Rate Index

Select a market rate index. Applications other than PeopleSoft Treasury should use the default index that you select for the exchange rate.

Term

This value defaults from the value entered on the Market Rate Definition page.

From Common Currency

Select a currency code to calculate a reciprocal rate.

Exchange Rate Type

Select the exchange rate type to use for this calculation

As of Date

Select the effective date of the newly created exchange rates, which are the output of the process. The as of date also determines the rates used as the basis for the calculations, which are the input of the process.

The report uses the most current currency quotation method for the currency pair as the input to the process. If the as of date is the current effective rate on the specified date, it can affect triangulation. For example, a USD to EPC (euro participating currency) triangulated rate effective April 1, 2004 might be comprised of the EUR to USD rate also effective April 1, 2004 and the fixed EUR to an EPC rate effective on the date the newly participating EPC officially becomes a euro participating currency.

Generate Report

Select to generate a report that displays the cross, triangulated, and reciprocal rate calculations performed by the process.

Override Existing Rates

Select to have the calculated rates override rates for the exchange rate type, regardless of the as of date.

Generate Reciprocal Rate

Select to calculates reciprocal rates for currency pairs that do not have the Auto Reciprocate option select on the Currency Quotation Method page.

You can select this option alone, or in combination with the Generate Cross Rates and Rate Triangulate options.

This process does not directly manipulate the exchange rates. The system uses numerator and denominator values instead, such that the following is true:

(from-currency / RATE_DIV) × RATE_MULT = to-currency

Fro example, suppose you want a reciprocal rate between USD and CHF and assume a two-to-one ratio. If the exchange rate for USD to CHF is quoted directly (either using a direct quote method that you selected or using the system default), this rate is stored as RATE_MULT = 2 and RATE_DIV = 1. The rate is represented as 1 USD = 2 CHF, with a visual rate of 2.

In turn, the CHF to USD rate must be indirect. The reciprocal is a simple exchange, storing the rate as RATE_MULT = 1 and RATE_DIV = 2. The visual rate remains 2.

If quote methods are not being used, the CHF to USD rate must be quoted directly (the default), so the reciprocal rate is actually a calculated inverse. This rate is stored as RATE_MULT = 0.5 and RATE_DIV = 1, with a visual rate of 0.5.

In this example between USD and CHF, using a quote method and using a calculated inverse produced the same end result, 1/2 equals 0.5. But in actual practice, the manipulation of exchange rates is a major task and is one of the reasons for establishing the currency quote method.

Generate Cross Rates

Select to automatically generate cross rates. For example, to generate cross currency rates for USD, CAD, and MXP, you enter USD to CAD = 1.473 and USD to MXP = 9.8793. The system automatically generates CAD to MXP = 9.8793/1.473 = 6.7069246.

If you choose to generate cross rates, the From Cur (from-currency) and To Cur (to-currency) fields display and you must select a from-currency and a to-currency. You can enter a wild card of % in either or both fields to indicate from all or to all currencies.

Rate Triangulate

Select to convert two currencies through a third currency.

Select to convert two currencies through a third currency. If you select Rate Triangulate, the From Cur (from-currency) and To Cur (to-currency) fields display and you must select a from-currency and a to-currency. You can enter a wild card of % in either or both fields to indicate from all or to all currencies.

Quote Method Required

Select to indicate that you want the process to perform selected calculations only if the currency pairs have an existing currency quotation method definition.

Using the Currency Exchange Calculator

In this section, we discuss how to convert amounts using the Currency Exchange Calculator.

Page Used to Use the Currency Exchange Calculator

Page Name	Object Name	Navigation	Usage
Currency Exchange Calculator	CURRENCY_EXCHNG_PN	Depends on application.	Calculate currency exchange between currencies. This tool enables you to select a rate type other than the base currency, but does not enable you to override the exchange rate.

Converting Amounts Using the Currency Exchange Calculator

Access the Currency Exchange Calculator page.

From Amount

The currency exchange is based on the from amount that you enter and the current exchange rate set up on the Market Rates page.

See Defining Market Rates.

From Currency Code

Select the currency code from which to calculate the exchange amount.

To Currency Code

Select the currency code to which to calculate the exchange amount.

Exchange Rate Type

Select the type of exchange rate to use for this calculation.

Converted Amount

Click Save to calculate the amount and display it in this field.

Status	Indicate whether the currency code is active or inactive. If you inactivate a currency code that is in use, existing transactions are unaffected. However, the currency code is unavailable for future selections. Some PeopleSoft applications do not allow you to inactivate a currency code that is in use.
Currency Symbol	PeopleSoft delivers many currencies with a currency symbol such as $ for Australian dollar (AUD) or £ for British pound (GBP). You can enter new symbols for delivered currencies or for currencies that you might add.
Country	Select the code for the country from which the currency originates. Note. PeopleSoft delivers fully populated country, state, and province code tables and updates these tables as national boundaries and designations change.
Decimal Positions	Enter the number of decimal positions that should appear in the notation for the currency. For example, there are two decimal positions for Australian dollars (500.00 AUD), but no decimal positions for Japanese yen (500 JPY).
Scale Positions	Enter the scale positions you want to round for this currency. This controls how many numbers appear to the left of the decimal when displayed. The data is actually stored with full precision in the database itself. For example, if you want all million-dollar amounts displayed as the number of millions without the zeros, enter 6 as your scale position. In this case, 24,000,000 is displayed as 24, but is stored in the database as 24,000,000.

Market Rate Index	Select a market rate index. Applications other than PeopleSoft Treasury should use the default index that you select for the exchange rate.
Term	This value defaults from the value entered on the Market Rate Definition page.
From Common Currency	Select a currency code to calculate a reciprocal rate.
Exchange Rate Type	Select the exchange rate type to use for this calculation
As of Date	Select the effective date of the newly created exchange rates, which are the output of the process. The as of date also determines the rates used as the basis for the calculations, which are the input of the process. The report uses the most current currency quotation method for the currency pair as the input to the process. If the as of date is the current effective rate on the specified date, it can affect triangulation. For example, a USD to EPC (euro participating currency) triangulated rate effective April 1, 2004 might be comprised of the EUR to USD rate also effective April 1, 2004 and the fixed EUR to an EPC rate effective on the date the newly participating EPC officially becomes a euro participating currency.
Generate Report	Select to generate a report that displays the cross, triangulated, and reciprocal rate calculations performed by the process.
Override Existing Rates	Select to have the calculated rates override rates for the exchange rate type, regardless of the as of date.
Generate Reciprocal Rate	Select to calculates reciprocal rates for currency pairs that do not have the Auto Reciprocate option select on the Currency Quotation Method page. You can select this option alone, or in combination with the Generate Cross Rates and Rate Triangulate options. This process does not directly manipulate the exchange rates. The system uses numerator and denominator values instead, such that the following is true: (from-currency / RATE_DIV) × RATE_MULT = to-currency Fro example, suppose you want a reciprocal rate between USD and CHF and assume a two-to-one ratio. If the exchange rate for USD to CHF is quoted directly (either using a direct quote method that you selected or using the system default), this rate is stored as RATE_MULT = 2 and RATE_DIV = 1. The rate is represented as 1 USD = 2 CHF, with a visual rate of 2. In turn, the CHF to USD rate must be indirect. The reciprocal is a simple exchange, storing the rate as RATE_MULT = 1 and RATE_DIV = 2. The visual rate remains 2. If quote methods are not being used, the CHF to USD rate must be quoted directly (the default), so the reciprocal rate is actually a calculated inverse. This rate is stored as RATE_MULT = 0.5 and RATE_DIV = 1, with a visual rate of 0.5. In this example between USD and CHF, using a quote method and using a calculated inverse produced the same end result, 1/2 equals 0.5. But in actual practice, the manipulation of exchange rates is a major task and is one of the reasons for establishing the currency quote method.
Generate Cross Rates	Select to automatically generate cross rates. For example, to generate cross currency rates for USD, CAD, and MXP, you enter USD to CAD = 1.473 and USD to MXP = 9.8793. The system automatically generates CAD to MXP = 9.8793/1.473 = 6.7069246. If you choose to generate cross rates, the From Cur (from-currency) and To Cur (to-currency) fields display and you must select a from-currency and a to-currency. You can enter a wild card of % in either or both fields to indicate from all or to all currencies.
Rate Triangulate	Select to convert two currencies through a third currency. Select to convert two currencies through a third currency. If you select Rate Triangulate, the From Cur (from-currency) and To Cur (to-currency) fields display and you must select a from-currency and a to-currency. You can enter a wild card of % in either or both fields to indicate from all or to all currencies.
Quote Method Required	Select to indicate that you want the process to perform selected calculations only if the currency pairs have an existing currency quotation method definition.

From Amount	The currency exchange is based on the from amount that you enter and the current exchange rate set up on the Market Rates page. See Defining Market Rates.
From Currency Code	Select the currency code from which to calculate the exchange amount.
To Currency Code	Select the currency code to which to calculate the exchange amount.
Exchange Rate Type	Select the type of exchange rate to use for this calculation.
Converted Amount	Click Save to calculate the amount and display it in this field.