Concept: Foreign Currency Award Contracts
You can create award contracts in a currency different than the company currency. When you create an award contract, the award currency populates based on the default currency of the bill-to sponsor. This setting enables you to create cost reimbursable and installment invoices in the preferred billing currency of the bill-to sponsor.
When you create an award contract in a currency different than the company currency, you must maintain currency conversion rates between the award currency and the company currency.
Example: A Canadian company creates an award contract for a sponsor in the United States. The sponsor requires that the award contract and award billing are in the bill-to sponsor currency of USD. The spend on the award can be in any currency the Canadian company supports.
Bill-To Sponsor
Before using foreign currency award contracts, verify your bill-to sponsor payment details:
- Select the accepted currencies for the bill-to sponsor.
- Select a default currency for the bill-to sponsor. When you select the bill-to sponsor on the award, Workday populates theAward Currencyprompt with the default currency of the bill-to sponsor.
Billing and Sponsor Payments
When you create a billing schedule and generate billing installments, the installments display in the award currency.
When you create a sponsor invoice, the invoice amount posts to a ledger account. The invoice remains in the award currency, and the accounting displays in the award currency and in the company currency.
You can only use currency override rates on customer invoices when the associated award line type is a fixed amount.
You can also record cash sales in the award currency. See Record Cash Sales.
Award Revenue Recognition
Award revenue recognition journals calculate cost reimbursable transactions in the award currency.
Budgets
Award budgets display in the company currency only.