Aurora_Gaimon

Multi-Currency: More than One Entity - Part (2)

Blog Post created by Aurora_Gaimon Employee on Dec 20, 2016

Once CA PPM multi-currency is enabled in the system and currencies set up, we can proceed with following scenario: "One Entity - One Currency"

 

 

I will use a sample to demonstrate the advantages and disadvantages:

 

Entity NameCurrency
Entity AEUR
Entity BUSD

 

 

** Some basic configuration is needed:

1. Ensure you have a Department OBS and Location OBS for each entity:

 

 

**Note: Before associating them as Department and Location OBS into an Entity, ensure you mark them "Use for Access Rights" if you need to.

 

 

2. Create each entity:

 

Entity A:

 

Entity B:

 

 

3. Configure Fiscal Time Periods per each one.

 

 

** Figures and Currencies in views:

Once the Entities are configured with departments, locations and fiscal time periods, let's take a look how figures and currencies are displayed in different views.

 

Project List:

It will show figures and currency. However, no exchange rate is applied and it cannot be converted to display all project in one single currency. There is not automatically logic conversion.

 

 

 

Project: Financial Plan Summary:

It will be show in the selected currency for that Department OBS entity:

 

 

Cost Plans:

It will be show in the selected currency for that Department OBS entity:

 

 

 

Cost Plan Details:

a. Investment Currency View:

It will be show in the selected currency for that Department OBS entity:

 

 

a. Billing Currency View:

This view has currency conversion logic. What does it mean?

 

Imagine we did NOT configure "Entity A" like this:

 

What if Billing Currency for "Entity A" is USD instead of EUR?

 

Then we can see that even Cost Plan is created in EUR, we can display in USD based on exchange rates defined in CA PPM.

 

 

 

** Advantages:

  • Project Managers can plan financials in local currency. 
  • Billing Cost does not have to be the same as defaulted currency.
  • You can create Portfolios using one currency and add investment from many different currencies and entities. CA PPM provides automatically currency conversion to the selected portfolio currency. Exchange rates must be configured for those currencies.

 

** Disadvantages:

  • You cannot set Program/Maser Project/Sub-project hierarchy if they don't belong to same entity. When adding a child investment, it will just provide the list of investment with same currency. Therefore, financial aggregation and analysis are not supported when investments are associated with different entities.
  • You cannot use aggregated attributes like TOTAL in project list where different currencies are mixed. It will provide wrong figures.
  • You will need to create custom report / portlets to support reporting.
  • Exchange rate maintenance.

 

 

 

Useful and Related Links

Multi-Currency: Let's technically enable it! - Part (1) 

CA Clarity Tuesday Tip: Managing List of Data with Different Currencies 

 

 

 

 

That’s all. Thanks for reading until here. Did you like it? Please, don’t be shy and share it.

Outcomes