Automated Currency Exchange Rates for JD Edwards EnterpriseOne

As a full-service Oracle JD Edwards service provider Circular Edge has been helping customers enhance operational efficiency since 2003. Over the years it became obvious that customers needed a good automated solution for managing currency exchange in JD Edwards.

Many customers have implemented manual processes for currency exchange which utilize the standard
Z process. While this may have been a viable solution before real-time integration technologies existed, today this approach can be more along the lines of using a typewriter to respond to emails.

For example, loading foreign exchange (FX) rates into JD Edwards starts with downloading a currency file from a service provider. Then validating and cleaning-up the data to remove currencies that are not applicable to your business. Now the file must be formatted based on your import program specifications. Then the import program is executed to load the F0015Z1 table. Finally you can execute R0015Z1P to load the new exchange rates. Now these manual processes may still suffice where there are one or two currency pairs, but what if you have over a dozen, or more?

For some customers it has become easier to just settle for updating exchange rates monthly (even though JD Edwards allows daily updates). For other customers there are individuals who add this manual workload to their end of day or after hours work activities. The result? Sometimes it works. However other times bad data may be discovered at month-end closings which can result in needing to restate financials. Beyond that there is no audit trail for compliance, there may also be a negative financial impact due to poor foreign exchange rates.

In 2015 it was reported that North American and European companies lost over $31B due to poor and inconsistent rates. This was in part due to the FX market structure itself. As a multi-trillion dollar per day market FX remains Over the Counter (OTC) by nature. There is no single source of the truth for rate information as FX is not centrally traded. As a result many different prices are happening at a single moment even within some of the banks themselves.

At the same time JD Edwards customers utilizing multi-currency are dependent upon these disparate FX rates for multi-currency accounting/reporting, as well as for FX risk management & analysis, pricing, cross-border payment, and more.

What can JD Edwards customers do to improve currency exchange efficiency?

#1 If you haven't already, Get an Accurate Data Source!

OANDA owns the world's most comprehensive FX data with 190 currencies tracked by the second over the past 20 years. OANDA is trusted by "the big 4" accounting firms as well as taxation authorities and companies worldwide, such as Tesla, Twitter & Travelocity to name a few. The OANDA rates are the globally recognized standard for accurate exchange rates data so your CFO can have confidence in the numbers.

#2 Automate Your Processes with AUTOXCHNG by Circular Edge

Circular Edge's AUTOXCHNG allows you to choose the periods, values, decimals & standards best suited for your business (from OANDA & European Central Bank). AUTOXCHNG easily integrates REST API with CSV, XML and JSON outputs. With AUTOXCHNG JD Edwards currency exchange is automated to avoid manual errors and increase audit-ability consistencies.

Key features include real-time integration, import only those rates relevant to your business (your data determines what gets imported), import when you want (monthly, weekly, daily, or custom schedule), raw exchange rate file is archived for future reference, notification functionality available, and fully automated so once installed no manual intervention necessary.

Additionally AUTOXCHNG supports both Daily and Restatement Rates where everything is transposed into the correct format:

Daily rates: All calculation methods (Inverse, No Inverse, Triangulation), Multiplier and Divisor conversion methods, and Spot Rate

Restatement rates: Period End Rates for P&L restatements, Period Average Rates for Balance Sheet restatements, and Any and All Standard and Custom Rate Types

Circular Edge has partnered with OANDA to provide a complete solution for
JD Edwards EnterpriseOne currency exchange automation.

Contact Circular Edge if:

You have multi-currency and are spending significant time and effort manually downloading, formatting and importing exchange rates

Or, you are updating rates less frequently than you would like due to the time involved

Or, you are concerned about potential data entry errors and audit compliance issues caused by manual processes

With AUTOXCHNG your organization can fully automate currency exchange and be up and running in a week or two. (the install takes less than a day and then the time you spend testing is up to you)