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    Ashok
    How currency conversion works on Requisition Approval...
    Topic posted July 5, 2019 by AshokBlack Diamond: 60,000+ Points, last edited July 5, 2019, tagged Approvals, Approvals/Notification, How-To 
    43 Views
    Title:
    How currency conversion works on Requisition Approval Notifications
    Summary:
    How does the system convert and display amounts when multiple currencies are involved in an approval notification
    Content:

    Customers / Support

    I have been asked a few times these past weeks on some clarifications relating to approval notifications in the context of multiple currencies. I am providing a picture of how the system displays amounts when there are multiple currencies involved.

    Let us familiarize ourselves with some terms first:

    1. Functional Currency: The currency of the ledger associated with the Requisitioning BU in which the requisition was created

    2. User Preferred Currency (UPC): Fairly self-explanatory, this is the currency that has been identified as the preferred currency of the user

    3. User: In the context of this flow, the user is the Approver, not the requester (The significance of this description will be clear later in this article)

    4. Requisition Submission Date: This is the date on which the requisition is first submitted for approval

    5. Conversion Rate Type: The type of conversion that the system needs to use to convert Functional Currency to UPC

    6. Conversion Rate: The rate that the system needs to use to convert Functional Currency to UPC

    NOTE:

    1. The entire context of this article is the BIP Approval Notification (not ADF Notification)

    2. The functionality described also applies to both Email and Online Notifications.

    Display of Approval Amounts:

    1. The system always displays the Functional Currency as the primary display under Approval Amounts

    2. If the system can successfully convert into UPC, then the system displays the UPC based Approval Amount below the Functional Currency Approval Amount. The font in which it is displayed out of the box is slightly smaller to lend it more distinction

    3. If the system cannot successfully convert into UPC, then the system only displays the Functional Currency Approval Amount.

    So far, so good. Now, what is the logic the system uses to compute 2. above? This is where the terms described above come into play.

    UPC Conversion Logic:

    Currency Conversion Rate:

    1. If a currency conversion rate exists for the Requisition submission date, then the system uses that rate

    2. If a currency conversion rate does not exist for the Requisition submission date, then the system tries to look for a fall back rate: Rate that is available in the last 30 days

    Currency Conversion Rate Type:

    In order to get the currency conversion rate, it is logical that a conversion rate type should exist. So how does the system get that?

    1. If a currency conversion rate type has been defined for the Procurement BU associated with the Requisitioning BU of the current requisition in the setup entitled: Manage Common Options for Procurement and Payables, then the system uses that conversion rate type

    2. If a conversion rate type is not available on that configuration setup page, the system will use the Rate Type entitled 'Corporate'

    3. Also note that if a conversion rate type does exist in the configuration setup page but that happens to be a User defined Rate Type, then the system will not display the UPC approval amount. It will only display the Functional Currency approval amount.

    I hope this article has afforded clarity on the logic that drives the displays of approval amounts on requisition approval notifications.

    Feel free to add comments, ratings and observations on the same. One of the questions that came from the customers and support was why the values they were looking at in the approval notification were different than the values on the requisition itself. This article also provides you clarity on that question.