Currencies

Currencies and Market Definitions allow addition of multiple currencies and their conversions into the system. Currencies are used to convert the default currency to a foreign currency. CPQ calculates foreign currencies by multiplying the conversion rate given in table Currencies by default currency price. This amount is then multiplied by Market Definition to get the final converted price. Market Definitions give the ability to vary the amount of conversion for different areas. For instance, in the US, the Dollar is worth a standard amount, but it may be worth a different amount if used somewhere else. To compensate for this, market definitions can multiply the US Dollar, or any other currency, by a value greater or less than 1 to give the US Dollar a higher or lower value.

One of the currencies has to be set as the default currency. The US Dollar (USD) is the default currency used throughout the system and is the base currency. For the purpose of the manual, we’ll keep the US Dollar as the default currency. When a different currency is calculated, the US Dollar (default currency) is multiplied by the conversion rate entered in Currencies, as shown in Figure A.

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Figure A - Currencies

The Currency column displays the common abbreviation of the currency, the conversion rate displays how many units of that currency is equivalent to 1 unit of the default currency (the default currency has a conversion rate of 1), the description displays the longer description of the currency, the sign displays the sign entered for that currency, and the default column displays whether the status is the default status or not (only one of the currency has a YES in the default column).
Currencies can be added using the Add New button.

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Figure B - Add New Currency

The fields in yellow are required. User will enter a short name of the currency in the currency column (because this name would be used to refer to this currency throughout CPQ), than will enter the conversion rate of the currency relative to the base currency, brief description of the currency, a sign for the currency, and choose whether the currency would be the default or not. If some other currency is currently set as the default currency, a confirmation screen would pop up informing that another currency is currently set as the default currency. Click OK to make the current currency the default or click Cancel to cancel changing the default status to the current status.

Fields highlighted in yellow are required.

The other currencies are available to modify the currency factor. Because USD is the base and default currency, its factor cannot be changed and is always constant at 1. Figure A shows the screen displaying the current currency factors. The , and buttons are used to copy, delete or edit a currency respectively. Currency symbol can be changed, but it is important to know that changing it you will affect all markets and therefore all quotes that uses that currency. It is not possible to change currency symbol to one already used.

Note that a currency cannot be deleted while the currency is being used by a Market or while the currency is the default currency. Attempting to delete a currency that is the current default currency would result in an error message.
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Figure C - Error Deleting Default Currency

Attempting to delete a currency that is being used by a market would also result in an error message.

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Figure D - Error Deleting Currency Used By a Market

The left column displays the currency description, while the middle column displays the currency abbreviation. The abbreviation is used on the Market Definition page to modify the value of the currency. To edit a currency factory, delete the current factor, enter the new one, then click Save.

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