Currency

Currency is the monetary unit used for various functions throughout Human Resources.

Currency codes must be established in the General Ledger application.

The sections below document different aspects of currency in HR.

Multiple currencies

If a company uses multiple currencies, users generally need to enter a currency code when they enter amounts throughout the Human Resources application.

When you define a company, you determine:

  • Whether the company allows multiple currencies

  • What currency the company uses to transact its business processes

If the company allows multiple currencies, each process level can use a different currency.

Company base currency

The currency in which the company transacts its business processes is called the company's base currency.

The currency must be the same as the currency used by the General Ledger company.

Generally, base currency is always equal to the company currency except in Multiple Positions, Jobs, which uses the employee currency as the base currency.

Employee base currency

The currency in which an employee is paid is called the employee's base currency. The employee's base currency is determined by the employee's primary position or job. The base currency must match the process level currency.

An employee can hold up to 98 positions or jobs, each of which can use a different currency.

Exchange rates

Any time you type a monetary amount you also select the currency in which the amount is recorded. The amount is converted to the company's base currency using an exchange rate. For more information about exchange rates, see the General Ledger User Guide.

Changing currency

You can change the currency for a company or process level. Before you change currency, make a plan that details what records you need or want to change.

Caution: 
Changing a company or process level currency is a significant change. Before you proceed, you should discuss all potential ramifications with your account manager.

Consider the following issues:

  • How do you use pay rate defaulting?

    If a pay rate defaulting level does not match the employee's base currency, the Payroll application skips to the next defaulting level. That means pay rate defaulting might not work as expected.

  • What are the company or process level's currency reporting needs? Do you need reports that show historical information using the new currency?

    Note: You can leave historical records in the old currency if you only want to change current records.

    Consider whether you need to change the currency for current and new records or if you need to change the currency for historical records.