Multicurrency User Guide

This document will:

• Provide an overview of the Multicurrency feature

• Walk through an example

• Explain types of Currencies and Exchange Rates available

• Explain how Exchange Rates are selected and how calculations are made

• Explain which Currencies are available on CLINs, POPs, Contracts, and Mods

• Explain how money rolls up from CLIN Mods to CLINs to Contracts/POPs

NOTE

This guide is for the standard TechnoMile Contracts Suite on Microsoft Dynamics. Your company may have chosen to not use Multicurrency, in which case all Contracts and CLINs will be in US Dollars. Your company may have configured page layouts, changed field names, or added approvals.  If you have any questions, please reach out to your Administrator or contact us directly at support@technomile.com.

Background

Many US Government Contracts can be written in currencies other than the US Dollar. Extremely complex Contracts with global requirements can have CLINs in currencies that differ from the currency of the Contract. TechnoMile Contracts supports such Contracts through the Multicurrency capability described in this document.

TechnoMile Contracts enables clients to manage Contracts written in any currency, with CLINs of the same or different currency, while having all financial values reported in US Dollars at the system level. Your company will have chosen which additional currencies to allow, if any, and these will be in the Currency table. Your company will also provide Exchange Rates, via an integration of a third-party data source with the Exchange History table.

User Requirements

What Users must select and what is calculated automatically?

When users set up or modify a Contract and add CLINs, they need to select currencies and effective dates. At Contract Award or during Contract Modification, users enter financial transactions (Funding or Obligations) in the currency in which they occur. TechnoMile Contracts automatically looks up the appropriate currency and Exchange Rate, based on the CLIN currency and the date of the transaction (Contract Effective Date for Award or Mod Effective Date). It then calculates and aggregates all financial transactions using the selected currencies on CLINs, POPs, Mods, and Contracts.

If a user does not select a currency, what will it default to?

TechnoMile Contracts has a default system currency of the US Dollar (with an exchange rate of 1.00) and that CANNOT be changed. Each Contract must have a currency and that currency defaults to the US Dollar. Each CLIN must have a currency and that currency defaults to the selected Contract currency. Each CLIN can have its own currency. Choosing the currency of one CLIN does not affect the default choice of another CLIN.

Example

Select a Currency when Creating a Contract

When a user creates a Contract, a Currency must be selected. By default, the US Dollar is chosen. As long as no Funding or Obligations have been added to a Contract, it is possible to change the Currency. To ensure data integrity, once money has been added, the Currency is locked.

At the Contract level, financial values are reported in two sections: Financial Values (US Dollars) and Financial Values (Contract Currency). Due to system limitations the values in the US Dollars section do not have a Dollar sign; but the labels of the fields indicate - USD.

In the Contract Currency section, the appropriate currency sign is in the fields. Due to system limitations, it is not possible to dynamically show the name of the Currency chosen by the user instead the term - Contract Currency displays.

For each, Total Obligations, Exercised Obligations, and Funded Amounts are shown. Within each of those, the Total Amounts of Cost, Fee, and Price are broken out, and summed to Total.

Select a Currency when Adding a CLIN

When a user creates a CLIN, a CLIN Currency must be selected. By default, the Currency on the Contract is chosen. As long as no Funding or Obligations have been added to the CLIN, it is possible to change the CLIN Currency afterwards. To ensure data integrity, once money has been added to a CLIN, the CLIN Currency is locked.

When creating a CLIN, a user is able to add Obligations and Funding. These fields then create the appropriate CLIN Mods and the CLIN Currency is locked for that CLIN.

How Currency Calculations Work for a Contract Award?

So far in this example, a Contract was awarded and has a Contract Effective Date of 2/1/2024. The Contract Currency is Euro and the CLIN Currency is Pound Sterling.

The Contract Effective Date is the date for lookups of Exchange Rates for Obligations and Funding that are awarded at the time of the Contract. Any money put on a Contract at Contract Award in any currency, has Exchange Rates pulled from the Exchange History table as of the Contract Effective Date. If no Exchange Rate exists for that day in the selected Currency, the most recent Exchange Rate before the Contract Effective Date is selected.

When a Contract is created, the system creates a Mod 0 - a base modification to track the financial values. On Mod 0, the Contract Effective Date becomes the Effective Date.

The Effective Date of the Mod becomes the Mod Effective Date of the CLIN Mod.

TechnoMile Contracts finds the Exchange Rates for the CLIN Mod by looking up the Mod Effective Date on the Exchange History table and finding the CLIN to USD Exchange Rate (to show values in Dollars) and the Contract to USD Exchange Rate. TechnoMile then calculates the CLIN to Contract Exchange Rate (to be able to show values in the Contract Currency) from the other two Exchange Rates.

Customers are then able to see the financial values in the CLIN Currency, US Dollars, and Contract Currency.

How Currency Calculations Work for a Contract Mod?

When a user creates a Mod (besides Mod 0), the Effective Date must be selected.

As with Mod 0, the Effective Date of other Mods becomes the Mod Effective Date on any CLIN Mod, and is the date used to look up the Exchange Rate on the Exchange History table. All other calculations and screens remain as shown above for Mod 0. When a new CLIN is created on a Mod, the user must select a CLIN Currency. All CLIN Mods for that CLIN have a CLIN Mod Effective Date that is the Effective Date of the Mod (2/2/2024 in the example above). When Funding or Obligations are added to an existing CLIN, the CLIN Mod Effective Date is also the Effective Date of the Mod.