2084566 - Currency, Multi Currencies, Functional Currency, Planner & Local Currency - CMP & VRP

• This article reviews the user of multiple currencies within templates.
• Can these be disabled?
• What is functional and local currency?

**Image/data in this KBA is from SAP internal systems, sample data, or demo systems. Any resemblance to real data is purely coincidental**

• SAP SuccessFactors Compensation
• SAP SuccessFactors Variable Pay

Compensation forms can be configured to include different currency views

• Functional
• Planner
• User
• Any Currency (Variable Pay Only)

The functional currency is the currency used by default to calculate values. If you are a company within the US, your functional currency may be set as USD.

To define a template currency navigate to Admin Tools > Compensation Home > Select the plan template > Plan Setup> Settings > Settings > Currency Settings section

You may also have Planner or User Currency options in your forms to allow the user to convert values into other currencies. For example, if your functional currency is USD but the user is within the UK, selecting User Currency allows the user to see values displayed in their own local currency rather than USD.

NOTE: This will require currency conversation tables to be setup. Also please note that any changes impacting user's currencies will require a relaunch of forms to get updated.

Enabling & Disabling views

• In the UI (Variable Pay Only): Variable Pay templates can be updated via the UI:

• Via XML: As a customer, you do not have access to Provisioning. Please engage a Certified Partner to assist with this configuration.

Download the template XML and update like below:

• Compensation template:
• Variable Pay template:

Functional Currency Code and Base Currency View

Functional Currency Code (functionalCurrencyCode)

• Determines currency shown in certain views and reports.
• Not necessarily the currency that is stored in the database.
• For example, for a UK planner their local currency is pounds, however in Functional Currency view the Salary may be displayed in USD if this is the Functional Currency.

Base Currency View (baseCurrencyView)

• Determines how currency values are stored in the database and how currencies are converted.
  Default is "functionalCurrencyCentric".
  Options: functionalCurrencyCentric and localCurrencyCentric
• So, for a client setting their base case currency to USD then all data needs to first be converted to USD and loaded. For example, people in UK would first need to convert all their data to USD.

BaseCurrencyView = "functionalCurrencyCentric"

Advantages

• Values stored in the system will all be in one currency, so salary passed in the SALARY column on import file must be in the same functional currency for everyone.
• Eliminates confusion around budgets, salary pay matrix (pay ranges) setup, and budget assignments because all are based on the functional currency.

Disadvantages

• Because the salary is not stored in the employee's local currency there may be rounding variances due to currency conversion.
• Please reference the Currency Conversion Tips document on wiki before you discuss the possibility of rounding variances with a customer.
• Reports exported to Excel (Rollup, Executive Review, etc.) and the Aggregate report will show the currency in the functional currency.

BaseCurrencyView = "localCurrencyCentric"

Advantages

• Values stored in the system are in the employee's local currency, so salary passed in the SALARY column on the import file must be in the employee's local currency.
• Possible rounding variances when conversions take place on planner or functional currency are more acceptable since the employee's local currency amount is preserved in the database.
• Note: Using localCurrencyCentric is only an advantage if the customer wants the local currency to be the "official" planning currency.

Disadvantages

• Can cause confusion around budgets, salary pay matrix (pay ranges) setup, and budget assignments because all are based on the functional currency.
• Reports exported to Excel (Rollup, Executive Review, etc.) and Aggregate report will show the currency in both the functional currency and local currency.

Currency and Import File

Two columns on the import file affect the currency/currency conversion in the compensation module:

• SALARY
• LOCAL_CURRENCY_CODE

• All other columns that end in _LOCAL are obsolete and no longer used in currency conversions.
• If using functionalCurrencyCentric the SALARY column should be populated with salaries in the same currency...the functional currency.
• If using localCurrencyCentric the SALARY column should be populated with salaries in the employee's local currency.
• It is always a good rule of thumb to populate the LOCAL_CURRENCY_CODE with a value...even if the value will be the same for every employee.

Note: This solution may contain xml code or other technical attributes. We provide this to help those clients using the Self-Service Tool to better understand the features discussed from a technical aspect.
          If you are not familiar with this tool or the technical references made, please know that you can engage SuccessFactors Experts for all your configuration needs.

Note: Planner currency is defined by the user that is accessing the form or Executive review (e.g User currency is BRL, then planner currency will be BRL).

Always sort in Functional Currency

• Planner wishes to sort new salary from smallest to largest amount, and employees are paid in different currencies.
• When the plan template setting is enabled and the template is local currency centric, the system will sort correctly.
• Go to Compensation Home, select your template and go to advanced settings -> Always sort in Functional Currency;
  
  
• Planner may sort currency fields (curSalary, finSalary, salaryRateFinal, totalComp, bonusAdjustment, bonusTotal, bonusTarget) on the worksheet and in executive review when plan template is local currency centric
• This is not enabled by default. If worksheets are in multiple currencies, this setting can be enabled.

Any Currency View in Variable Pay

When would you use the "Any Currency" view in your Variable Pay program?

This can be used when reviewing currency at assignment level. Please consider the following:

• Programs functional currency is EUR
• Employee's currency is USD
• Planner currency is USD
• One of the employee's assignments is INR

Without the "Any Currency" view enabled, it would not be possible to see the bonus amount in INR for this employee. You will not see it if you are using functional, planner, or user currency views.

Budget Summary page

Please note the following example when looking at the Summary budget page within templates.

• When EUR is functional currency, then the "Budget (% spent)" is having value €21,743,230(…)
  Result Budget: Spent €1,541,400,549|Over €1,519,657,319.

• When INR is functional currency, then the "Budget (% spent)" is having value ₹21,743,230(…)
  Result Budget: Spent ₹1,541,400,549|Over ₹1,519,657,319.

In both cases, the value for fields remains the same; only the currency symbol changed as per currency being selected as Functional Currency in Plan Setup.

This is expected behaviour because in order to see the conversion from EUR to INR, it can be seen in worksheet. For this, select EUR as functional currency of the plan in Plan Setup and the planner currency as INR. 
Now within the worksheet, when you select the option of "Planner Currency (INR)", the actual conversion will happen.

For summary in Compensation Home, the value for Budgets remain same irrespective of the currency being selected as Functional Currency. The currency conversion is not applicable here.

• Implementing and Managing Compensation - Configuring Functional Currency
• Implementing and Managing Compensation - Creating Currency Conversion Table
• Implementing and Managing Compensation - Settings Managed from the Compensation Plan Template

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