Running the Convert Currencies Process
This topic provides an overview of the currency conversion process and discusses how to convert currencies.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
ST_RUNCTL_PURCH |
Run a process to convert currencies for a stock purchase. |
|
|
ST_CONTRIB_PARTIC |
View a participant's contributions. |
|
|
Review Residual Contributions Page |
ST_CONTRIB_RSDL |
View a participants contributions that are left over from a previous stock plan purchase and determine their disposition. |
If your company administers its plan globally, some participants might make contributions in a currency other than the stock currency, USD. Before you run the Purchase Stock process, convert these contributions into the stock currency.
Stock Administration relies on several HR Management general option tables in the currency conversion process. Your system administrator defines these tables based on your company's business rules and enterprise-wide requirements. Work with your system administrator to understand the parameters defined for your company and to make sure that they are adequate for your stock purchase plans.
The exchange rate for each currency to the stock currency is the key component of the Convert Currencies process. You define the exchange rate used in the process on the Stock Purchase - Currency page. For each currency combination, the calculated market rate (based on the market rate index, rate type, and exchange date) and an actual exchange rate used in the process appears, providing an audit trail of the conversion process.
The Convert Currency process (ESPP_CONVERT) uses the currency conversion index and rate types that you set up for the plan. It finds all the currency codes loaded in your contribution table that must be converted. Based on the exchange currency set up at the trading exchange, the system multiplies the contribution amount by the multiplier factor set up in the currency exchange index. You see both the original contribution currency amount and the converted stock currency.
The Convert Currency process occurs in three stages.
Refresh Process
The refresh process compares, then refreshes, the existing rows of data for currency conversion to the most current data. It identifies all valid from and to currency combinations for the specified offering and purchase period end date. If it finds any new combinations, it inserts them into the currency table for the purchase definition. If there are any updates that change the data in the currency table, such as a rate change, the system updates the existing data to reflect the most current market rate data. Because you can override the actual exchange rate, this field is updated only if the previous market rate and previous actual exchange rate are identical. If the rates differ, you receive a warning message to review and verify the exchange rate data before running the Purchase Stock process.
You can run the refresh process by either of two methods:
Click the Refresh button on the Stock Purchase - Currency page. This enables you to view the most up-to-date information for the Convert Currencies process. After you click the Refresh button, a batch process refreshes the data on the page.
Select the Convert Currency check box on the Process Stock Purchase page. The refresh process runs each time the Convert Currencies process runs.
Conversion Process
This process runs each time the Convert Currencies process runs. The system calculates the stock contribution amount by multiplying the contribution amount by the rate multiplier and then dividing by the rate divisor for the market rate index, rate type, and exchange date specified.
Rounding of Converted Contributions
This process rounds the converted contributions to the number of decimal places specified for the currency code in the Currency Code Table.
Procedure for Converting Currencies
To convert currencies:
Run the Convert Contributions process.
Select the Convert Currency check box on the Process Stock Purchase page.
View participant contributions and make manual adjustments using the Review Contributions page and the Review Residual Contributions page.