Billing Extensions and Multiple Currencies

Billing and cost rates for project reporting are defined at the time that a transaction is posted. When you post a transaction, Deltek looks at the applicable billing terms to determine billing rates for project reporting purposes. If you later update the billing terms, your updates are not reflected on the project reports unless you refresh billing extensions.

If you are using multiple currencies, Deltek performs either one calculation or two calculations for billing extensions:

• Deltek always calculates billing extensions in the billing currency.

• If you select the Use Billing Currency not Project Currency option on the Reporting tab of Settings > Advanced Accounting > System, Deltek calculates an extra extension after the fact to convert the amount back to the project currency.

Therefore, if you have a transaction on a posting log for which the functional currency is the same as the project currency, but the billing currency is different, you need to be aware that there is actually an extra exchange being done to calculate the billing extension.

Example

Project A belongs to Company-US and uses the following currencies:

• Functional Currency: USD

• Project Currency: BHD

• Billing Currency: EUR

These daily exchange rates are in effect:

• USD -> EUR 1.5 exchange rate

• USD -> BHD 4.5 exchange rate

• EUR -> BHD 3.0 exchange rate

The Billing Terms multiplier for the transaction is 2.0.

When calculating the billing extension for a functional amount of $100.00 (USD), Deltek performs these steps:

1. 100 USD * 1.5 = 150 EUR (functional currency amount to billing currency amount)

2. 150 EUR * 2.0 multiplier from billing terms = 300 EUR (extension of billing currency amount)

   Result = 300 EUR

   If you select the Use Billing Currency not Project Currency option on the Reporting tab of Settings > Advanced Accounting > System, Deltek calculates an extra extension after the fact to convert the amount back to the project currency. So Deltek adds a third step, and the result is quite different:

3. 300 EUR * 3.0 = 900 BHD (billing currency amount to project currency)

    Final result:  900 BHD