Multi-Currency Purchase Requisition with GL Cost Splitting in Maximo EAM

This is an advanced procurement scenario where you:

• Purchase from a foreign vendor in their currency
• Distribute costs across multiple departments/GL accounts
• Maximo handles currency conversion and cost allocation automatically

Business Scenario Example

Company: Global Manufacturing Inc.

Base Currency: USD (US Dollar)

Vendor: Siemens AG (Germany)

Currency: EUR (Euro)

Item: Industrial Control System — €50,000

Departments Sharing Cost:

• Production Dept (GL 5100): 60% = €30,000
• Maintenance Dept (GL 5200): 25% = €12,500
• Engineering Dept (GL 5300): 15% = €7,500

Exchange Rate: 1 EUR = 1.18 USD (as of PR date)

Step-by-Step Configuration & Execution

PREREQUISITES (Must be set up first)

Configuration Where Example Value Base Currency Organizations app USD Exchange Rates Currency Codes app EUR→USD: 1.18 GL Accounts Chart of Accounts 5100-Production, 5200-Maintenance, 5300-Engineering Vendor Setup Vendors app SIEMENS-DE, Currency: EUR Item Master Item Master app CTRL-SYS-001, Class: EQUIPMENT

📝 STEP 1: Create the Purchase Requisition Header

Navigation: Purchasing → Purchase Requisitions → New Purchase Requisition

Field Value Notes PR Number PR-2024–0892 Or use Autonumber Description Industrial Control System — Siemens Clear description for approvers Company (Vendor) SIEMENS-DE Foreign vendor Currency EUR Critical: Changes from USD to EUR Site MAIN-PLANT Where items will be delivered Requested By [Your Name] Auto-populated Required Date 2024–06–15 Delivery deadline

What Happens:

• Once you select Currency = EUR, all monetary fields on this PR switch to EUR
• Maximo will calculate USD equivalents in real-time using the active exchange rate

📦 STEP 2: Add the PR Line Item

Click: PR Lines tab → New Row

Field Value Notes Line Type ITEM From inventory/master Item CTRL-SYS-001 Industrial Control System Description Siemens S7–1500 PLC System Auto-filled from Item Master Quantity 1 One system Unit Cost 50,000 In EUR (because PR currency is EUR) Line Cost 50,000 Auto-calculated (Qty × Unit Cost) Order Unit EACH Unit of measure

At this point:

• Total Cost (EUR): €50,000
• Total Base Cost (USD): $59,000 (50,000 × 1.18)
• Status: WAPPR (Waiting for Approval)

💰 STEP 3: Distribute Costs Across GL Accounts

This is where GL splitting happens:

3A. Access the Distribute Costs Function

1. Select the line item you just created (Line 1)
2. Click: Distribute Costs button (in the PR Lines table toolbar)
3. Window Opens: “Distribute Costs” dialog

3B. Enter Distribution Rows

The first row shows the total line cost (€50,000 / $59,000). You must edit this row and add additional rows.

Row GL Debit Account Percentage Line Cost (EUR) Line Cost (USD) Department 1 5100-Production 60% €30,000 $35,400 Production Dept 2 5200-Maintenance 25% €12,500 $14,750 Maintenance Dept 3 5300-Engineering 15% €7,500 $8,850 Engineering Dept TOTAL 100% €50,000 $59,000

How to Enter:

Row 1:

• Click the existing row (shows 100%, €50,000)
• Change GL Debit Account to: 5100-Production
• Change Percentage to: 60
• Line Cost auto-updates to: €30,000 (and $35,400 USD)

Row 2:

• Click New Row
• GL Debit Account: 5200-Maintenance
• Percentage: 25
• Line Cost: Auto-calculates to €12,500 (or you can enter the amount and % auto-calculates)

Row 3:

• Click New Row
• GL Debit Account: 5300-Engineering
• Percentage: 15
• Line Cost: Auto-calculates to €7,500

3C. Validation Rules

Maximo validates:

• ✅ Percentages must equal 100% (60 + 25 + 15 = 100)
• ✅ Costs must equal total line cost (€30,000 + €12,500 + €7,500 = €50,000)
• ✅ All GL accounts must be valid in your Chart of Accounts
• ❌ If validation fails, you cannot click OK

Click: OK to save distribution

Indicator: A small icon appears next to the line item showing costs are distributed

️ STEP 4: Add Additional Information

Ship To / Bill To Tab

Field Value Ship To Location MAIN-PLANT-RECEIVING Ship To Address Auto-populated from Location Bill To CORPORATE-AP (for EUR invoice processing)

Terms and Conditions Tab

Sequence Term Send to Vendor 10 Payment Terms: Net 30 days EUR ☑ Yes 20 Incoterms: DDP (Delivered Duty Paid) ☑ Yes 30 Warranty: 24 months parts & labor ☑ Yes 40 Currency Clause: All payments in EUR ☑ Yes

Specifications Tab (if using Classifications)

If CTRL-SYS-001 has attributes:

• Voltage: 400V
• Power Rating: 15kW
• Communication: PROFINET
• Operating Temp: -20°C to +60°C

✅ STEP 5: Save and Submit for Approval

Click: Save Purchase Requisition

System Actions:

1. PR saved with status WAPPR
2. Multi-currency flags set
3. GL distribution records created in database
4. Approval workflow triggered (if configured)

Approval Routing Example:

• Production Manager (for 60% = €30,000 portion)
• Maintenance Manager (for 25% = €12,500 portion)
• Engineering Manager (for 15% = €7,500 portion)
• Corporate Procurement (for EUR transaction compliance)

🔄 STEP 6: Approval & Conversion to Purchase Order

Once all approvers approve:

Status Changes: WAPPR → APPR

Buyer Actions:

1. Open PR-2024–0892
2. Click Create PO action
3. PO Number: PO-2024–1156 (or autonumber)
4. Currency: EUR (inherited from PR)
5. Exchange Rate: 1.18 (locked at time of PO creation)
6. Click: OK

What Gets Copied to PO:

• ✅ Header info (vendor, currency, terms)
• ✅ Line items (CTRL-SYS-001, qty 1, €50,000)
• ✅ GL Distribution (all 3 rows with % and amounts)
• ✅ Ship To / Bill To addresses
• ✅ T&Cs

PO Status: APPR (ready to send to Siemens AG)

📊 STEP 7: Receiving & Invoice Matching

When Goods Arrive:

Receiving Application:

1. Reference PO-2024–1156
2. Record receipt of 1 unit
3. Status: Partially Received → Complete

When Invoice Arrives from Siemens:

Invoice Application:

1. Invoice Number: SIEM-INV-78945
2. Currency: EUR
3. Invoice Amount: €50,000
4. Click: Copy PO Lines
5. PO Lines Copied:

• Line 1: CTRL-SYS-001, €50,000

GL Distribution on Invoice: Maximo automatically copies the GL split from the PO:

GL Account Amount (EUR) Amount (USD) 5100-Production €30,000 $35,400 5200-Maintenance €12,500 $14,750 5300-Engineering €7,500 $8,850

Final Step: Post invoice to financial system

Result: Three separate journal entries created in your ERP/General Ledger

🔍 What Happens in the Database

Tables Involved:

Table Purpose Example Record PO Purchase Order header PO-2024–1156, Currency=EUR POLINE PO line items Line 1, €50,000 PODISTRIB GL Distribution 3 rows with GL accounts & % INVOICE Vendor invoice SIEM-INV-78945, €50,000 INVDIST Invoice GL split Mirrors PODISTRIB

Currency Fields Stored:

For each monetary field, Maximo stores both values:

Field Name Example Description linecost 50,000 Cost in PO currency (EUR) linecostbase 59,000 Cost in base currency (USD) exchangerate 1.18 Rate at time of transaction currencycode EUR Transaction currency

⚠️ Important Considerations & Best Practices

1. Exchange Rate Timing

• PR Creation: Uses current exchange rate
• PO Creation: Rate is locked (frozen)
• Invoice Receipt: Uses PO rate (not current rate)
• Variance: Any difference between PO rate and invoice payment rate creates foreign exchange gain/loss in your GL

Example:

• PO created at 1.18 → €50,000 = $59,000
• Invoice paid at 1.20 → €50,000 = $60,000
• FX Loss: $1,000 (posted to FX variance account)

2. GL Account Validation

• If your org requires GL validation, accounts must be entered before approval
• Invalid GL accounts will block approval workflow
• Use Validate GL action if available

3. Distribution Editing Restrictions

You CANNOT edit GL distribution after:

• ❌ Any quantity has been received
• ❌ Invoice has been created
• ❌ PO status is CLOSED

Workaround: If you need to change distribution after receipt:

1. Create a manual journal entry in your financial system
2. Reallocate costs between GL accounts
3. Document the reason for the adjustment

4. Multi-Currency Reporting

When running reports:

• Base Cost Reports: Show all values in USD (or your base currency)
• Foreign Currency Reports: Show values in transaction currency (EUR)
• Exchange Rate Variance Reports: Show gains/losses from rate changes

5. Approval Limits in Multi-Currency

Approvers have limits in base currency (USD):

Approver Limit (USD) Can Approve EUR Amount Manager A $40,000 Up to €33,898 (40,000 ÷ 1.18) Manager B $75,000 Up to €63,559

In our example: €50,000 = $59,000 → Requires Manager B or higher

📱 Screen-by-Screen Visual Guide

PR Lines Tab View:

Line | Item        | Description              | Qty | Unit Cost | Line Cost | Currency
-----|-------------|--------------------------|-----|-----------|-----------|----------
  1  | CTRL-SYS-001| Siemens S7-1500 PLC      |  1  | 50,000.00 | 50,000.00 | EUR
     |             |                          |     |           |           |
     | GL Distribution: [✚] (icon shows 3 accounts)
     |
     | Total Base Cost: $59,000.00 USD

Distribute Costs Dialog:

┌─────────────────────────────────────────────────────────┐
│ Distribute Costs for Line 1                              │
├──────────┬──────────────────┬──────────┬───────────────┤
│ Sequence │ GL Debit Account │ Percent  │ Line Cost     │
├────────────────────────────┼──────────┼───────────────┤
│    10    │ 5100-Production  │   60%    │ €30,000       │
│          │                  │          │ ($35,400)     │
├────────────────────────────┼──────────┼───────────────┤
│    20    │ 5200-Maintenance │   25%    │ €12,500       │
│          │                  │          │ ($14,750)     │
├────────────────────────────┼──────────┼───────────────┤
│    30    │ 5300-Engineering │   15%    │ €7,500        │
│          │                  │          │ ($8,850)      │
├──────────┼──────────────────┼──────────┼───────────────┤
│  TOTAL   │                  │  100%    │ €50,000       │
│          │                  │          │ ($59,000)     │
└──────────┴──────────────────┴──────────┴───────────────┘
                    [  OK  ]  [ Cancel ]

🎯 Real-World Use Cases

Use Case 1: Shared Manufacturing Equipment

• Scenario: Production line robot costs €200,000
• Departments: Assembly (40%), Welding (35%), Quality (25%)
• Benefit: Each department’s budget reflects actual usage

Use Case 2: IT Infrastructure

• Scenario: Cloud server contract €12,000/year
• Departments: Development (50%), Testing (30%), Production (20%)
• Benefit: Accurate chargeback to projects

Use Case 3: Facility Renovation

• Scenario: HVAC upgrade €85,000
• Cost Centers: Building A (60%), Building B (40%)
• Benefit: Capital expenses allocated correctly for depreciation

📈 Reporting & Analytics

Key Reports:

1.Multi-Currency Exposure Report

• Shows all open POs in foreign currencies
• Calculates potential FX risk

2.GL Distribution Summary

• Lists all PRs/POs with cost splits
• Shows % allocation by department

3.Foreign Exchange Variance

• Compares PO rate vs. invoice payment rate
• Identifies gains/losses

4.Departmental Spend Analysis

• Filters by GL account
• Shows actual vs. budget in base currency

🔐 Security & Permissions

Action Required Security Group Create multi-currency PR PRCREATE Select foreign currency PRCURRENCY Distribute costs PRDISTRIB Approve EUR transactions APPR_EUR (custom) Create PO from PR POCREATE

Quick Checklist for Multi-Currency PR with GL Split

[ ] Vendor set up with correct currency (EUR)

[ ] Exchange rate active in Currency Codes app

[ ] GL accounts exist and are active

[ ] You have approval limits in base currency

[ ] Item master record exists (or using Material line type)

[ ] Ship To location configured

[ ] Terms & Conditions available for international vendors

[ ] Approvers notified of multi-currency transaction

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Contact me on LinkedIn:

https://www.linkedin.com/in/sayed-saeed-ab3286214/

#maximo #Inventory#ItemSet

Full course exists here on Udemy: https://www.udemy.com/course/mastering-ibm-maximo-comprehensive-guide-for-professional/?referralCode=C768555C4F3E0DBB7664