Base Currency Normalization
The Base Currency Normalization functionality enables you to converts the amount received through the inbound BODs, to the Infor CRM base currency, as required.
The exchange rates maintained in Infor CRM are used for the conversion.
Prerequisites for Normalization
- Multi-currency must be enabled.
- BOD packs must be installed.
- The Normalize Base Currency Values option on the Back Office Extension Integration Maintentance Options tab setting must be set to True. See Back Office Extension Integration Maintenance Options tab.
Example of Normalization
Consider an organization in United States that is using Infor CRM 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 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, the currency of the amounts received through the inbound BODs are converted to USD, which is the Infor CRM 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 base currency (USD). | The inbound ERP base currency and transaction currency are retained for the transaction, in Infor CRM (USD). | |
| Scenario 2 | The ERP base currency used by India (INR) and Belgium (EUR) is different from the Infor CRM base currency (USD). | The ERP transaction currency used by India and Belgium is same as the Infor CRM transaction currency(USD). | The transaction values provided in the CRM base currency, (USD) are captured as the CRM base currency values meeting the USD base currency requirement. |
| Scenario 3 | The ERP base currency used by India (INR) and Belgium (EUR) is different from the Infor CRM base currency (USD). | The ERP transaction currency used by India (INR) and Belgium (EUR) is different from the Infor CRM transaction currency (USD). | The inbound ERP transaction currency value is algebraically converted to the CRM base currency (USD) based on the existing CRM exchange rate table. |
Entities impacted by Normalization
Normalization impacts these entities:
- Account
- Quotes
- Sales Orders
- Invoice
- Returns
- Shipment
- Receivables