If you have global customers or do pricing in different currencies, the multicurrency feature enables you to maintain a single price list for multiple currencies.
You can set up and maintain multiple currency conversion rates for a base currency by creating a single multicurrency list. You can then attach the multicurrency list to multiple price lists or agreements. Price list maintenance is reduced because only one currency conversion definition can be attached to multiple base currency price lists, and when base prices change, you need to update only the prices on the base price list.
You can also specify currency-specific markup/markdown equations that are applied as a formula, percent, or fixed amount to mark up the currencies.
When a pricing request is made, the pricing engine converts the price on the base price list to the ordering currency and returns the new price in the ordering currency (including any markup values).
Note: To set up the multicurrency feature, your System Administrator or designate must complete the following steps:
Set the QP: Multi-Currency Installed profile option to Yes, and run theUpdate Price Lists with Multi-Currency Conversion Criteria concurrent program. Run the concurrent program only once. For more information, see Update Price Lists with Multicurrency Conversion Criteria.
Install and license Advanced Pricing.
Ensure that you have Maintain privileges so that you can make any necessary updates. If you cannot access or update the multicurrency or related windows, you may not have the appropriate access privileges. Consult your Pricing Administrator.
When the price lists and agreements are converted to multicurrency usage, windows and fields are updated with new multicurrency fields and some existing procedures may change.
The following section summarizes the changes that occur when the multicurrency feature is implemented:
Pricing Engine Changes
The pricing engine matches the order currency to the currencies attached to the price list at the time of selection. The engine then applies the conversion type, markup, and rounding to the price.
Changes to Price Lists Window
New Multi-Currency Conversion field: A new field called Multi-Currency Conversion is added to the Advanced Pricing - Price Lists window where you can select a multicurrency list that has the same base currency as the selected price list.
Round To procedure: The Round To field in the price list header is grayed out and can no longer be changed directly in the Advanced Pricing - Price Lists window. Instead, you must change the Round To value in the Multi-Currency Conversion window and update the Round To in the price list header.
Agreements
New Multi-Currency Conversion field: A new field called Multi-Currency Conversion is added to the Pricing tab in the Agreements window where you can select a multicurrency list that has the same base currency as the selected price list.
Round To procedure changed: The Round To field in the Pricing Tab is grayed out and can no longer be changed directly. Instead, you must change the Round To value in the Multi-Currency Conversion window and update the Round To in the Pricing tab. You can update the multicurrency list only for Agreement Price Lists, not for Standard Price Lists.
Once you have successfully run the concurrent program, all existing price list and agreement windows are converted to multicurrency price lists. Users should not return to non-multicurrency price lists. Changing the profile back to No may cause undesired results if conversion criteria have been used. Oracle does not support changing the setting back to No.
You cannot use the general ledger types as a conversion type if multicurrency is installed or if Oracle General Ledger is not installed.
You can define markup criteria for each currency definition by specifying either a fixed value or one derived from a formula. Specific currency rounding can also be defined for the converted selling price.
You must make any changes to the base currency in the Multi-Currency Conversion window and not in the price list window.
You cannot update the Base Round To value if the QP: Price Rounding profile option is set to Enforce Currency Precision.
The following examples show you how rounding is calculated during currency conversion calculations.
If the Conversion Rounding Factor and the Round To values in the Multi-Currency Lists window are entered for a currency conversion, the conversion rounding factor is applied first, followed by the Round To factor.
This is applicable for every item (except for the service item) in every pricing event.
Example 1Price List Setup
List Price for Item A = 60.12345
Base Currency Code = USD
Multicurrency Conversion List Attached to the Price List
To Currency Code = CAD
Conversion Type = FIXED
Conversion Rate = 2.0
Conversion Rounding Factor = -2
Round To = -3
In Service Pricing, the service item is rounded using the Round To, not the conversion rounding factor.
Price List Setup
Base Currency = USD
List Price for Item B = 60.12345
Multicurrency Conversion List Attached to the Price List
To Currency Code = CAD
Conversion Type = FIXED
Conversion Rate = 2.0
Conversion Rounding Factor = -2
Round To = -3
Sales Order Setup for a Service Item B
Order Currency = CAD
Converted Price before rounding = 60.12345*2 = 120.24690
Price after applying the Round To (final rounded price) = 120.247
Price that appears on the Sales Order = 120.2470 (after applying -4 currency precision for CAD)
QP: Selling Price Rounding Options = Individual
The QP: Selling Price Rounding Options profile option affects only the rounding factor. If the profile is set to Individual, then the rounding factor is applied. If it is set to No, the rounding factor is not applied. The QP: Round Unit Selling Price profile option does not affect the Conversion Rounding Factor. The Conversion Rounding Factor is always applied to the list price.
Price List Setup
Base Currency = USD
List Price for Item A = 60.12345
Multicurrency Conversion List Attached to the Price List
To Currency Code = CAD
Conversion Type = FIXED
Conversion Rate = 2.0
Conversion Rounding Factor = -3
Round To = -2
Sales Order Setup for a Non-Service Item A
Order Currency = CAD
Converted Price before rounding = 60.12345*2 = 120.24690
Price after applying conversion rounding = 120.247
Price after applying the Round To (final rounded price) = 120.25
Price that appears on the Sales Order = 120.2500(after applying -4 currency precision for CAD)
Sales Order Setup for a Non-Service Item A
Order Currency = CAD
Converted Price before rounding = 60.12345*2 = 120.24690
QP: Selling Price Rounding Options = N (No)
Price List Setup
Base Currency = USD
List Price for Item A = 60.12345
Multicurrency Conversion List Attached to the Price List
To Currency Code = CAD
Conversion Type = FIXED
Conversion Rate = 2.0
Conversion Rounding Factor = -3
Round To = -2
Sales Order Setup for a Non-Service Item A
Order Currency = CAD
Converted Price before rounding = 60.12345*2 = 120.24690
Price after applying the Conversion Rounding Factor = 120.247
Price appears on the Sales Order = 120.2470 (after applying -4 currency precision for CAD)
Navigate to the Advanced Pricing - Define Modifier window.
Query or create desired modifier for a discount.
Select a Formula. If selecting a formula with a component type as Price List Line, the base currency of the price list must be the same as the modifier currency.
Save the modifier record.