Handling Project Costs in different currencies

[Anusha_Rao]

Hi All,

We have requirements where we have Project managers and demand managers across different regions and they run projects in their own currencies. But Portfolio manager at Portfolio level wants to have a roll up in USD only.

So we have installed Multi-currency plugin. 

In ServiceNow OOTB USD is set as default functional currency. So we have kept the settings as it is.

We have enabled the currencies AUD, GBP and EUR along with USD.

And we are planning to tell Project managers at Australia, Europe and UK to change the Project form view to Project Currency view and enter the values in their local currencies. So they can enter there cost plans in their local currencies but the system will convert the entered currency to functional currency and roll up to USD at Portfolio level.

Is this right way to handle our requirement scenario.

PPM experts please share your comments on this.

Thanks,

Anusha

[Namita Mishra]

Hi @Anusha_Rao ,

Yes, the way you have explained is correct way to handle multi-currency requirement.

Please note that you should also have the conversion rate defined for these currencies otherwise system just takes the conversion rate as 1 and the calculation becomes incorrect.

Please mark this as helpful / correct if I was able to answer the point.

Thanks,

Namita Mishra

[Anusha_Rao]

Thank you @Namita Mishra and @Dhiren Aghera for your responses. Appreciate your help. I need some more details for my understanding of functionality.

When Multi Currency is enabled , When we enter the cost in project currency, it automatically converts it to functional currency.

I was thinking the currency conversion happens based on the daily exchange rates fetched by ECB Exchange rate Load.

If Demand/Project currency fields uses the budget reference rate for the conversion and not the fx rate table then

1. in which scenario ECB scheduled job is used?
2. Who will decide the budget reference rates that should be entered in the system for currency conversion?
3. Once the budget reference rates are entered, who should maintain the "budget reference rates"? (Admin/Project manager/who?)
4.  Should we disable the ECB scheduled job?

Please share these details.

Thank you,
Anusha

[Dhiren Aghera]

Hi @Anusha_Rao ,

As mentioned by @Namita Mishra you are following the right approach and you need to understand that after multicurrency plug-in is installed the multicurrency fields with suffix "in Demand/Project currency" are created and uses the budget reference rate for the conversion and not the fx rate table so that the rates are more static based on the start and end dates of the cost plans and not dynamic.

Hope this helps.

[Dhiren Aghera · Accepted solution]

Hi @Anusha_Rao 

1. in which scenario ECB scheduled job is used? [DA] - if I am not wrong it is used to update the fx rate table to get the latest exchange rates
2. Who will decide the budget reference rates that should be entered in the system for currency conversion? [DA] - It is mostly the finance department that should be giving the exchange rates to be considered
3. Once the budget reference rates are entered, who should maintain the "budget reference rates"? (Admin/Project manager/who?) [DA] - This should be mostly part of the O&M as the budget reference rates do not change very frequently and it can happen once or twice in a FY based on your organization process.
4.  Should we disable the ECB scheduled job? [DA] - No need to disable it as it has no impact on the multicurrency set-up.