Revenue Generation and Multiple Currencies
When you track multiple currencies in DPS, you must perform some additional steps to set up and use Revenue Generation.
- Before you process Revenue Generation for one or more projects, you must specify the exchange date on the Revenue Generation form in
. The exchange date identifies the exchange rate from the Daily Exchange Rate table that
DPS should use.
If you want to run Revenue Generation during the accounting period, you should select today's date, or the closest date available, as your currency exchange date. Use the exchange rate for that date for all currencies in which you run Revenue Generation.
- Revenue Generation always calculates a project's revenue using the project information at the lowest level of the project's work breakdown structure.
- Revenue Generation cannot be used with the currency override feature.
Currency Used to Calculate Revenue
- Each of the standard revenue methods calculates a project's revenue in the billing currency.
- When you process Revenue Generation, DPS determines whether or not additional revenue has accrued as a result of expressing the revenue in the project's billing currency. If it has, DPS translates this incremental amount into the equivalent amount in the project's functional currency, and posts the resulting amount to the general ledger.
- A project's revenue method formula often includes data that affects the project's billable amount. Any amount needed to reconcile the revenue amount with the project's billable amount is expressed as work in progress ( WIP) or Unbilled Services. This reconciliation amount is in the project's billing currency.
- As part of the Revenue Generation process, DPS recalculates the unbilled balance in the project's functional currency and compares the amount to the unbilled balance in the billing currency (the currency in which revenue is being calculated) as of the exchange date specified on the Revenue Generation form. During this process, DPS resolves any difference between these balance amounts that results from exchange rate fluctuation.
- You can also select the option to
Calculate revenue separately in billing, project and functional currencies.
- This option is available only when you create a user-defined revenue method.
- When you process Revenue Generation, DPS determines whether any incremental amount of additional revenue has accrued as a result of calculating revenue separately in the billing currency, the functional currency, and/or the project currency. If it has, DPS calculates the amount of the increment. No currency translation from billing currency to functional and project currency is needed when you run Revenue Generation with this option selected.
- This option is most suitable when the segments of the revenue calculation have values in all three currencies. For example, this method is appropriate for revenue methods based on transactions. This option may not be appropriate for user-defined revenue methods that include user-defined fields, where the amount is only expressed in one currency, or that include budget or planned amounts, which DPS may not store in the functional currency.
Example
Assume that you have a project with:
- A functional currency of US dollars (USD) and a billing currency of British pounds (GBP).
- A user-defined revenue method of Labor times 3.0 multiplier + reimbursable expense.
- Ten hours of labor worth 100 USD.
The timesheet for this labor is posted on a date when the exchange rate is 2.
- Billing currency = 50 GBP
- Functional currency = 100 USD
You process Revenue Generation on a date when the exchange rate is 1.8.
- Billing currency = 50 * 3.0 = 150GBP
- Functional currency = 150 * 1.8 = 270 USD
If you have selected the option to calculate revenue separately in each currency, you process Revenue Generation on a date when the exchange rate is 1.8.
- Billing currency = 50 * 3.0 = 150 GBP
- Functional currency = 100 * 3.0 = 300 USD