1. Multi-currency. Opportunities and challenges within JD Edwards
Thomas Baertschi
August 20, 2018

2. Multi-Currency in JDE Transaction processing in a foreign currency
Monetary Account Valuation
Balance Restatement for consolidation purposes
Detailed Restatement to financial books in more than one currency

3. Multi-currency Transaction Processing

4. Multi-currency Transaction Processing
Objective
Enter transactions in a foreign currency and have them automatically converted and booked to the base/domestic/functional currency.

5. Multi-currency Transaction Processing
Pre-requisites
Define Multi-Currency Conversion option in G/L constants.
Designate Currency Codes.
Define Exchange Rates (daily, weekly, monthly, other).
Define default currency codes in Customer Master and Supplier Master (optional).

6. Multi-currency Transaction Processing
Enter a Transaction
Enter the currency code for finance, sales and purchasing transactions, or let it default.
Review/override the exchange rate.
Post the transactions, booking the domestic currency to AA ledger and the foreign currency to CA ledger.
For A/P and A/R transactions, both the domestic and foreign values are stored in the supplier and customer ledger respectively.

7. Multi-currency Transaction Processing
Challenges
Transactions with mixed currencies
Not possible for financial entries (G/L, A/P, A/R).
For transactions impacting inventory (sales, purchasing, inventory, manufacturing), JDE will determine if the transaction is multi-currency or not based on the first line on the transaction.
If the first line is in the same currency as the Header information, the currency conversion does not take place, booking the wrong value in the AA ledger.

8. Multi-currency Transaction Processing
Challenges
Inter-Company transactions for a bank account in a different currency
If a foreign transaction for a company in base currency XYZ is booked to a bank account in another company with a different base currency, the system will reject this error, depending on whether there is a currency code assigned to the account or not (Monetary Account).
Invalid transaction: Company A with base currency CAD creates an A/P invoice in USD and the user would like to credit a bank account in company B with base currency USD and the bank account does not have a currency code assigned to it, the system will give an error message ‘Bank Currency Code Incorrect’.
Valid transaction: Company A with base currency CAD creates an A/P invoice in USD and the user would like to credit a bank account in company C with base currency CAD and the bank account does have a currency code of USD assigned to it.

9. Monetary Account Valuation
Multi-Currency
Monetary Account Valuation

10. Monetary Account Valuation
Objective
Revalue open balances for monetary accounts (usually Bank Accounts, A/P and A/R) based on current exchange rates and book unrealized FX gains/losses.

11. Monetary Account Valuation
Pre-requisites
None for A/P and A/R.
For G/L, designate a currency code in the Account Master. This is mostly used for bank accounts, but can be leveraged for any account.
Alternatively, Post by Currency can be activated in the Company Master and then the account range is defined with AAI PBC**.

12. Monetary Account Valuation
Daily Processing
Foreign values for A/R and A/R are automatically stored in the supplier and customer ledger respectively.
For G/L transactions, the foreign values are stored in separate records by currency in the Account Balance table (F0902).

13. Monetary Account Valuation
Monthly Processing
Run A/P Unrealized Gain/Loss report (R04425).
Run A/R Unrealized Gain/Loss report (R03B426).
Run Monetary Account Valuation (R09415).
These programs will revalue the foreign transactions with the current exchange rate, and book the change in value as an unrealized FX gain/loss with a reversing journal entry.

14. Monetary Account Valuation
Challenges
Data conversion on monetary accounts
Data conversion must be split by currency, or
Data conversion must be done manually after the fact
The automatic inter-company account (AAI ICC) cannot be defined as a monetary account
It can therefore not be revalued at the end of the month, making inter- company reconciliation in different currencies more challenging
Designating an existing G/L account as a monetary account usually requires some kind of data cleanup via journal entries

15. Multi-Currency
Balance Restatement

16. Balance Restatement Objective
For companies operating in an international environment with subsidiary companies maintaining their financial books in a local/statutory currency different from the group currency, revalue the books into one or more group currencies.

17. Balance Restatement Pre-requisites
Define Restatement Computations by company, by ledger type and by G/L account ranges, usually:
Balance Sheet at month-end rate
P&L at average rate
Equity at historical rate (optional)

18. Balance Restatement Pre-requisites (continued)
Assign a default Computation Id to a company in the Company Master (optional).
Define restatement exchange rates by type (Month-end, Average, Historical, custom) and by currency.
Setup versions of Compute Restatement Balances to select and process groups of companies.

19. Balance Restatement Monthly Processing
Update the restatement exchange rates.
Run Balance Restatement which will take the ending balances from the AA ledger (or CA or XA) and convert them in a separate ledger (AC or other).
Review the balances in the other ledger types.

20. Balance Restatement Challenges
Very few challenges, the balance restatement can be run as many times as required, it will simply override the previous balances.
Companies that want to keep some equity account(s) at a historical value need to maintain a separate exchange rate, and they need to monitor the results when they reclass the system calculated Retained Earnings to the historical Retained Earnings account.

21. Multi-Currency
Detailed Restatement

22. Detailed Restatement Objective
Some companies want to maintain their financial books in more than one currency at the transaction level.
Some companies want to maintain their fixed assets purchased in a foreign currency at historical value and not revalue it to it’s current value. Balance Restatement only partially addresses this requirement.
Some companies want to maintain their inventory in more than one currency. This also requires the JDE Advanced Stock Valuation module.

23. Detailed Restatement Pre-requisites
Activate Detailed Currency Restatement in the Company Master.
Review/Setup Detailed Restatement Ledger Type (standard is XA).
Setup version(s) of Detailed Currency Restatement (R11411).
Update processing options of General Ledger Post to call Detailed Restatement program (optional).

24. Detailed Restatement Daily Processing
All the G/L transactions in the AA ledger are converted at the current exchange rate and new records created in the Account Ledger for the Restatement Ledger Type.
When processing A/R and A/P transactions, the system will automatically calculate the Realized FX Gains/Losses in the Restatement Ledger.
The Journal Entry program allows you to override the restatement rate.

25. Detailed Restatement Challenges
There is no feature to calculate unrealized gains/losses in the detailed currency restatement currency.
Realized FX Gain/Loss calculation is only available for A/P and A/R transactions, not for other G/L entries.
The process for overriding the historical exchange rate in a journal entry is cumbersome and error-prone.
Advanced Stock Valuation is required to maintain perpetual inventory in a restated currency.

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