Concept: Currency Conversion
Workday Payroll converts currency after net pay validation. When you set pay groups and company accounting to different currencies, Workday calculates payroll in the pay group currency and passes the results to accounting in both currencies. The results are then available for reporting.
Workday doesn't convert currency for:
- Arrears.
- Commitments.
- Fringe benefit actuals.
- Obligations.
- Pay balances.
- Payroll intercompany accounting.
Currency revaluations can lead to unrealized exchange gains or losses when you produce financial statements for ledger accounts with transactions in foreign currencies. Review the
Foreign Currency Revaluation
report for any currency valuation changes.Setup
Workday handles conversion once you set up the:
- Currency for a new company using theCreate Companytask.
- Pay groups using theCreate Pay Grouptask.
To switch a foreign pay group from the company currency to their local currency, you can:
- Create a new pay group using theCreate Pay Grouptask.
- Select the country of the foreign pay group.
Payroll Results
- During payroll calculation, Workday uses the default currency rate type as of the pay period end date for currency conversions.
- From a worker's , you can click the:
- Actualstab to view journals lines for each ledger account.
- Paymenttab to view whether there are different currencies for payments and pay groups for each payroll payment.
- By default, payslips display the currency elected by the worker.
Maintenance
For managing currency rate types and currency conversion rates, use the:
- Maintain Currency Rate Typestask to set a default and manage currency rate types.
- Edit Company Accounting Detailstask to override the default currency rate type by company.
- Maintain Currency Conversion Ratestask to manage currency conversion rates.