Use of Multi Currency in Clarity

[Anon Anon]

Dear Friends,  I would like to know what are the Benefits of having Multi Currency:-  Does it help in rolling up Financial information for Projects which are tagged to different entities?For Example:Project A is associated with Canada Dept (Whose currency is CAD)
Project B is Assocaited with China Dept (Whose currency is CHY)When the information in the financial plans is entered for the above, the currency shown in the plans is CAD and CHY respectively.
We have the exchange rates setup accordingly.When we try to add the above projects as subprojects to Project in US (Entity) and see the financial rollup we see that the
financial amounts all show up in USD and no currency conversion takes place.How do the exchange rates work? Is it only useful for Reports? I have also tried the OOB Budget/Forecast Analysis report but it also does not
do any kind of conversions.Please let me know your thoughts...  Thanks,Vasanth

[Anon Anon]

 financial amounts all show up in USD and no currency conversion takes place.   Are you saying that you see USD as the currency but CHY 500 = USD 500 = CAD 500 ???  Have you checked your exchange rates?

[Anon Anon]

Hi Vasanth,       Please correct me, if i wrong. The currency conversion is applicable for only WIP Posting. I think currency conversion doesn't applied, when create a financial plan. Please look at the sample attached file, how currecy converion is applied while WIP Posting.    ThanksSenthil.

Attachment(s)

WIP Calculations.xls   56 KB 1 version

[Anon Anon]

Thanks Senthil and  Paul for your reply.    I am attaching a screenshot illustrating the issue. I have created a Program. Attached two Projects as subprojects to the Program  from two different entities (EUROPE and CANADA). These two projects have financial plans in their default currencies. When I go to the Hierarchy tab of the Program and do the Financial Rollup, I see the two projects with their plan details in their local currency but they sum up to USD with out any conversion at the bottom. I have also attached the Exchange Rate screen shot.  Senthil to your question, we are not using the WIP module as of now and thanks for the information,it will help understand it when we start using that module.  Thanks,Vasanth

Attachment(s)

Financial Rollup in Heirarchy.doc   1.03 MB 1 version

[Anon Anon]

Vasanth,   i suspect it may be due to the  transaction date is not  inline with the Effective date (belive it is not current one) in the Foreign Exchange rates Table.   We have enabled Multi Currency as we have finance users across countries.Our Default currency is set to USD.
The transactions will be entered in their country currency which is the Natural currency.(HK,SGD,GBP).
After Post to wip the actuals will reflect the current rate defined in the Foreign Exchange Rates.
We will recieve the latest Forex rates every month end from Finance before our Monthly financial process.
The Post to wip Job will happen and then the system will take the Conversion Rate Type Average Defined in the Forex
for the respective currency Conversion.Then Finance will generate reports so the transactions will be shown
both in Natural Currency and the Default Currency which is USD.  In Database you have 2 tables.cmn_currenciescmn_exchange_rates  If multi-currency is not enabled, the default is the system currency. If multi-currency is enabled, the default is the billing currency.
Select another currency as needed.WIP adjustments are processed in the natural currency amount. If multi-currency is enabled, each time a WIP adjustment is entered,
the currency amounts are updated with the exchange rates based on the original transaction date.The Recalculate And Post button in the Post To WIP page will recalculate the rate/cost if any of the foreign exchange rates have been modified
or if new ones have been added, you can choose to recalculate or update the currency amounts for each transaction based on the most current
and applicable exchange rates."Recalculate And Post" button in the Post To WIP page displays only when multi-currency is enabled.Cost PlanThis view shows only the data for the selected cost plan or budget. There is no child data included in the view.
The view shows home currency. This is the only view available for benefit plans.  Simple Budget page  If there is no detailed cost plan, the user can modify the currency code. When this occurs,
the application will always use the exchange rate = Average, so you make sure you have exchange rate setup for average.For example, default system currency is GBP, Simple budget page has currency code = GBP too.
The user wants to change the currency code to USD for this project,then the user has to make sure there is an average exchange rate for USD to GBP.    regards,sundar

[Anon Anon]

Sundar,I am afraid if you interperted it wrong. We are not using the Financial Management for WIP as of now.   We have the system enabled for multi currency and that is why we are able to see different entities set up with their Home currency. The exchange rates are also active as the effective date(time since they are applicable) says. I am trying to find out why the totals are not summed up in the Progam Hierarchy after conversion.  Please let me know if this is not clear.  Thanks,vasanth

[Anon Anon]

Vasanth,  The subject blinded my eyes.  See this KB is relevant to yours.   Title:     CLRT-14132 - Financial Roll-up: Automatically set Currency to home currency (driven through entity) (Niku KB ID: 9210)[left]
Applies To:
Clarity 8.x

Symptom:
BUG #97329/CLRT-14132 - Financial Roll-up: Automatically set Currency to home currency (driven through entity)
User can choose any active planning currency before creating a cost plan. This contradcits with the logic that an Investments tied to an entity can only have one currency. As a result, the Hierarchy adds up cost components while ignorning that they are of different currency.

Steps to Reproduce:
1. Create multiple projects assosciated with the same entity, but chose a different planning currency
2. Add Investments to Service (using Hierarchy features)
3. Examine Financial Roll-up Screen.
Expected: Since Hierarchy was designed to be limitted to one currency using entity as a common base, the projects with a different currency from the Service currency should be excluded from financial aggregation (Display "-" or blank in the aggregation line). Display warning message on top "Hierarchy will not aggregate items with different currency".
IDEALLY, highlite different currency line!
Actual: Hiearchy ignores different currencies and adds them up as if they were the same.

Workaround:
None

Status/Resolution:
This bug is currently in review with our Development Team pending resolution

More Information:
N/A


Keywords
========
CLRT-14132, 97329, Financial Roll-up. home currency, service hierarchy, entity, aggregation[left][left]

[Anon Anon]

Thanks for the information Sundar.  Shall reach out to CA in getting  the issue resolved. Through this forum I wanted to check if any users have been using this feature.  Thanks again.  Vasanth

[Anon Anon]

KB TEC489449 Clarity: Exchange Rate Type and their usages  Description: Clarity has three exchange rate types: 'Average', 'Fixed' and 'Spot', and the various areas of the application where Multi Currency is being used. Exchange Rate Types are being used in various areas of the application where Multi Currency is being used   Portfolio Scorecard :   Applies ALWAYS the Exchange Rate Type = Average  OOTB Reports (i.e. Budget Forecast Analysis):   Applies ALWAYS the Exchange Rate Type = Average  Cost Plans (Billing View) :   Exchange Rate Type is selected based on the transaction type as defined in Properties/Financials.   Transactions:   Exchange Rate Type is selected based on the transaction type as defined in Properties/Financials in conjunction with the Rate Matrix.   Simple Budget page:  If there is no detailed cost plan, the user can modify the currency code. When this occurs, the application will always use the exchange rate = Average, so you make sure you have exchange rate setup for average. For example, default system currency is GBP, Simple budget page has currency code = GBP too. The user wants to change the currency code to USD for this project, then the user has to make sure there is an average exchange rate for USD to GBP.   You can find the full KB article here
https://comm.support.ca.com/?legacyid=TEC489449 Specific notes for this thread:   A Project’s Billing Currency can be changed (to anything even different to Home Currency) This is the Currency used in the Billing View of the Cost Plan (and shown as Billing Cost)

The system uses the Average Exchange rate for this conversion

If the Billing Currency is changed after cost plan is created then the figures are  not changed automatically

The Billing View of a Cost Plan is only updated when a change is done to the Cost Plans, so if the currency is changed in the financial properties, that wont have any effect unless the Cost Plan is copied again or manually changed. Hope this helps.  [left]

[Anon Anon]

Thank you. THis information helped me a lot in understanding the Exchange rate and their areas of applications.  Thanks,Vasanth