EPC/ECA- How To Reconcile Currency Conversion Discrepancies Between Billing/Projects/General Ledger?
Last updated on JUNE 07, 2017
Applies to:PeopleSoft Enterprise FIN Contracts - Version 9 and later
PeopleSoft Enterprise FIN Project Costing - Version 9 and later
Information in this document applies to any platform.
Checked for relevance on 26-NOV-2012
How to reconcile currency conversion discrepancies between billing/projects/General Ledger?
Here is the scenario:
- Base currency is USD
- AP voucher is entered for $100 CAD. The expense is charged to a billable project ID. The invoice date is 12/15/2010 and the accounting date is 1/3/2010.
- Currency converasion rate for CAD to USD is .98 as of 12/15/2010 and 1.02 as of 1/3/2010. System uses the 12/15/2010 invoice date as the currency effdt, so 100 CAD is converted to 98 USD.
- PC_AP_TO_PC process runs to push this AP expense to PROJ_RESOURCE table. 2 rows are created - analysis type ACT and BIL. Both rows have 98 USD as the resource_amount and 100 CAD as the foreign_amount. The trans_dt is 12/15/2010 and the accounting_dt is 1/3/2010. This is correct and as we wold expect.
- CA_BI_INTFC and BIIF0001 processes run to push the BIL row in PROJ_RESOURCE into the BI_LINE table so it can be billed. However, instead of coming into billing at 98 USD, it comes in at 102 USD. CA_BI_INTFC is doing another currency conversion and using the accounting date of 1/3/2010, so it picks up the currency conversion rate of 1.02.
- Now we have the BIL row in PROJ_RESOURCE at 98 USD and the matching row in BI_LINE at 102 USD. This is wrong - resource_amount of the BIL row in proj_resource should match the amount on BI_LINE.
- Invoice is finalized and billed out at 102 USD. Subsequent process changes the BIL analysis_type row in PROJ_RESOURCE to BLD, but the resource_amount on that row remains at 98 USD.
- Reports running against PROJ_RESOURCE meant to show billing activity would wrongly report that 98 USD was billed, when actually 102 USD was billed.
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