Concepts

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Site Currencies in the Enterprise

Each site in your enterprise can maintain financial records in its own site currency. For example, your enterprise could contain a top site that uses European euros (the enterprise currency), one child site that uses U.S. dollars, and another that uses Canadian dollars. When APM converts monetary amounts between site currencies, it uses the current exchange rates maintained in the enterprise’s accounting settings.

Setting up Site Currencies

Setting up and maintaining site currencies involves three tasks:

•	Define the enterprise currency: selecting the currency for enterprise financial information is usually a one-time task, but you can change the enterprise currency if necessary.

•	Define site currencies: you can change the site’s currency from the default enterprise currency when setting up the site.

•	Maintain currency exchange rates: after setting up currency combinations and their rates, you can change rates as often as once a day.

This section provides more information about setting up site currencies in your enterprise.

Enterprise Currency

You can select the enterprise currency when defining the enterprise’s properties. This currency is the default assigned to new sites as they are added to the hierarchy. If you do not need more than one site or currency, the enterprise currency is all that is required.

For information about changing the enterprise currency, see **Setting Enterprise Properties.

Note: If you need to change the enterprise currency after the enterprise is established, be sure to run the Recalculate Approval Routes Limits scheduled action. This action uses the new enterprise currency to recalculate the approval limits for your approval routes. For more information, see Scheduling Actions.

Site Currencies

When you create a site, it is assigned the enterprise currency by default. You can change the site’s currency when defining its properties.

You can change its currency once a site is established, for example, if a site is accidently created with the default currency rather than the correct site currency. When you change the site currency, all of the site’s monetary amounts are converted to the new currency at par (that is, one unit of the old currency equals one unit of the new currency). The currency exchange rates are not used to convert the site’s information.

Currency Exchange Rates

Currency exchange rates are set up and maintained at the enterprise level and apply to all sites in APM. To set up exchange rates, you must define currency combinations, for example, U.S. dollars to European euros, and the rate of exchange for each combination. When a new exchange rate is entered, it is automatically assigned the current date as its effective date and it becomes the current rate of exchange for that currency combination.

For more information, see Currency Exchange Rates.

How Multiple Currencies are Handled

All transactions and documents that have a financial value are tracked in the site currency. This includes, but might not be limited to, the following:

•	Work requests’ estimated costs

•	Work orders’ planned and actual costs

•	Resource demand costs

•	Asset costs, including life-to-date, financial period, and asset life costs

•	Approval routes and approval requests

•	Purchase contracts

•	Purchase orders, lines, extra charges, taxes, and distribution

•	Requests for quotation’s base currency costs, supplier bid costs, and bid information

•	Requisitions

•	Invoices and related objects (for example, financial system entries)

•	Downtime incidents

•	Inventory values

•	Project costs

•	Resource transactions

•	Vehicle costs (asset and lease subtypes)

The following sections explain how multiple currencies are handled for different types of objects and actions.

Approvals

When sending a document for approval, you can select an approval route from another site that uses a different currency. Your approval request’s amount is recorded in both the site and enterprise currencies. Similarly, the approval route’s maximum approval limit is recorded in both site and enterprise currencies. APM compares amounts in the enterprise currency to filter the list of available routes and to route the request to the appropriate approvers.

Asset Transfers

Assets can be transferred to sites with different currencies. An asset that has been transferred between sites has separate life-to-date, asset-life, and financial period costs for each site. If you wish to view the total costs for an asset (for example, total life-to-date costs), you can select the Summed by site and cost type table configuration in the asset’s Maintenance Costs view.

If you wish to transfer a serialized asset to a site with a different site currency, you must first remove the link between the asset and the serialized resource unit. After transferring the asset, link the asset to a unit at the new site.

Asset Downtime Costs

Downtime costs are entered in the asset’s site currency. If the asset’s downtime cost rules specify that costs are defined from an ancestor asset, when a downtime incident is created, APM searches up the asset hierarchy to find the first asset with downtime costs. These values are used to calculate the costs of the current downtime incident. However, APM searches only within the current site for an ancestor asset with downtime costs; it does not traverse to a higher site in the hierarchy.

Resources

Because a resource can be used at the site where it was created and lower-level sites, it could be used at a site with a different currency. In this case:

•	The resource’s RFQ threshold value is converted to the resource demand’s site currency.

•	The resource’s allowable price increase and decrease amounts are converted to the invoice line’s site currency.

Resource Demands

To determine if an RFQ is required, APM checks the resource’s RFQ business rules (if they have been defined for the resource), including the RFQ threshold amount. If the demand originates at a site using a different currency, the demand’s value is converted to the resource’s currency before the values are compared. If the demand’s RFQ is placed at a site with a different site currency, the accepted supplier’s bid prices are converted to the demand’s site currency.

Resource Transactions

The monetary amount of a resource transaction (such as a timecard, stock return, or warehouse issue) is entered in the transaction’s site currency. However, if the transaction is posted to an object (such as a work order, asset, project, purchase order, or warehouse-item inventory balance) on another site with a different currency, the amount is converted to that site’s currency.

Note: You cannot transfer materials between warehouses at different sites that use different currencies. If you want to do so, use two inventory adjustment transactions instead.

When a transaction for tool issue or usage crosses sites that use different currencies, the cost of the tool is charged in the currency of the site that uses the tool.

Labor Rates

Labor rate types are defined in the currency of the sites where they are created. If a rate is retrieved from a higher site that uses a different currency, the rate is converted to the currency of the site where it is used.

Extra Charges and Taxes

Extra charges and taxes are defined at the top site and available for use at all sites. The tax’s and extra charge’s rules for invoice price tolerances allow you to set allowable price increase and decrease amounts. These values are converted to the invoice line’s site currency so that APM can evaluate whether the invoice requires approval.

Requests for Quotation

The RFQ’s base currency cost, supplier bid cost, and bid information are recorded in the RFQ’s site currency. However, when the RFQ is awarded and the resource demand is updated, the RFQ values are converted to the resource demand’s site currency.

Purchase Liabilities

Purchase liability costs are recorded in the liability’s site currency. If the liability is invoiced at a site with a different currency, the liability’s invoiced value and amount remaining are updated by converting the invoice values to the liability’s site currency.

Invoices

The following amounts are maintained in the invoice’s site currency:

•	Invoice amounts and costs

•	Invoice line amounts and prices

•	Invoice line distribution amounts

•	Invoice line extra charge cost

•	Invoice line tax cost

Project Costs

The project hierarchy can span sites with different site currencies. The estimated costs and cost summaries of the sub-projects are converted to the currency used at the parent project’s site.

Failure Modes

Failure modes can be defined by asset types, which are defined at the top site. The asset type’s failure modes can be used to create maintenance action plans and failure modes at a lower level site with a different site currency. If an asset type’s failure mode is used to create a failure mode at a site with a different currency, the new failure mode’s avoidance savings are converted to its site currency. If an exchange rate is not available for the conversion, the avoidance savings are converted at par. For example, an avoidance savings of $15,000 U.S. would be converted to $15,000 CDN.

Key Performance Indicators (KPIs)

If you wish to measure monetary values from sites that use different currencies, be sure to adjust your KPIs to perform the conversion to a base currency. For example, to use the Purchase Order: Value KPI template to determine the total U.S. dollar value of purchase orders from both sites that use U.S. dollars and sites that use Canadian dollars, you need calculation inputs that select values from U.S. sites and Canadian sites, as well as the current CAD to USD exchange rate. Adjust the KPI’s formula to convert Canadian dollar amounts to U.S. dollars. For more information, see Introduction to Performance Indicators.