Overview of Normalization
In an integrated environment, if Infor CRM SLX has the Multi-Currency functionality enabled and a base currency defined, there is a possibility that the inbound transactions may contain amounts in currencies other than the Infor CRM SLX base currency. In such cases, aggregation of amounts is not possible. Hence, the Normalization functionality is required.
In Infor CRM SLX, a base currency is defined to calculate aggregate amounts. Infor CRM SLX receives data through inbound BODs. The currency in which the amounts in the BODs are specified is known as the transaction currency.
The data received through inbound BODs can be in different currencies. If the Infor CRM SLX base currency is different from the incoming transaction currency, you cannot aggregate the amounts.
Normalization
The Base Currency Normalization functionality enables you to convert the amounts received through the inbound BODs, to the Infor CRM SLX base currency, if required.
For this conversion, the exchange rates maintained in Infor CRM SLX are used. The exchange rates can be updated manually or using the Exchange Rate Services functionality.
The Prerequisites for Normalization
- The version of Infor CRM SLX must be 8.3 update 08 or later.
- Multi-currency must be enabled.
- BOD packs must be installed.
- The Normalize Base Currency Values custom setting must be set to True.
Example of Normalization
Consider an organization in United States that is using Infor CRM SLX integrated with ERPs in other office locations. The organization has other offices in US, India and Belgium which maintain ERP systems that have different base and transaction currencies. These offices perform the transactions in USD, INR and EUR respectively. The Infor CRM SLX base currency is set to USD.
The US office requires to report the total sales revenue for a fiscal year using the data in Infor CRM. The India office sends the sales data to the US office in INR and the Belgium office sends the sales data in EUR. A user at the US office cannot calculate the total sales revenue due this variance in the currency formats.
When the Infor CRM administrator at the US office enables the Normalization functionality in Infor CRM SLX, the currency of the amounts received through the inbound BODs are converted to USD, which is the Infor CRM SLX base currency. This enables the user to generate the total sales revenue report for the organization, in USD.
These are the possible scenarios, when India and Belgium offices send the data to the US office:
Scenario | Base currency | Transaction currency | Action |
---|---|---|---|
Scenario 1 | The ERP base currency used by India and Belgium is same as the Infor CRM SLX base currency (USD). | The ERP transaction currency used by India and Belgium is same as the Infor CRM transaction currency(USD). | The inbound ERP base currency and transaction currency are retained for the transaction, in Infor CRM SLX (USD). |
Scenario 2 | The ERP base currency used by India and Belgium is same as the Infor CRM SLX base currency (USD). | The ERP transaction currency used by India (INR) and Belgium (EUR) is different from the Infor CRM SLX transaction currency (USD). | The inbound ERP base currency is considered and updated as base currency and the transaction currency for the transaction, in Infor CRM SLX (USD). |
Scenario 3 | The ERP base currency used by India (INR) and Belgium (EUR) is different from the Infor CRM SLX base currency (USD). | The ERP transaction currency used by India and Belgium is same as the Infor CRM SLX transaction currency(USD). | The inbound ERP transaction currency is considered and updated as the base currency and the transaction currency for the transaction, in Infor CRM SLX (USD). |
Scenario 4 | The ERP base currency used by India (INR) and Belgium (EUR) is different from the Infor CRM SLX base currency (USD). | The ERP transaction currency used by India (INR) and Belgium (EUR) is different from the Infor CRM SLX transaction currency (USD). | The inbound ERP transaction currency is considered and is normalized to Infor CRM SLX base currency. This normalized transaction currency is updated as the base currency and the transaction currency for the transaction, in Infor CRM SLX (USD). |
Entities impacted by Normalization
Normalization impacts these entities:
- Account
- Quotes
- Sales Orders
- Invoice
- Returns
- Shipment
- Receivables