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E1: 04: Overview Multi Currency within Automatic and Manual Payments in Accounts Payable (P04571/P0413M) (Doc ID 1432621.1)

Last updated on FEBRUARY 15, 2018

Applies to:

JD Edwards EnterpriseOne Accounts Payable - Version XE and later
Information in this document applies to any platform.

Purpose

Overview

A foreign currency payment is a payment that is in the foreign (transaction) currency of the voucher. You specify the foreign currency of a payment at the time the payment is entered. When entering a foreign currency payment:

For example, the domestic currency of a voucher is U.S. dollars (USD). The foreign currency payment must be for a company with a base currency code of USD and the payment and the transaction currency of the voucher must be the same. If the bank account is a monetary account, the company currency for the bank account must also be USD. If the company currency for the bank account is different from the base currency of the payment, the system issues an error message.

Prior to writing foreign currency payments, the following setup must be completed:

  1. Assign currency codes to supplier records
    • Each supplier record contains these currency code fields:
      • Default Code (CRRP). Currency in which you enter vouchers for the supplier. Can be overriden when entering the voucher. If you leave this field blank, the system uses the currency of the company assigned to the supplier record as the default.
      • A/B Amount Code (CRCA). Currency in which you track address book amounts for the supplier, including amounts invoiced this year and the prior year. If you leave this field blank, the system uses the value of the Amount Currency Code field if it is specified in the processing options for the Supplier Master program (P04012). Otherwise, it uses the currency code of the company assigned to the Business Unit field on the Address Book Revision form.
      • Caution: Once you have assigned an A/B Amount Code (CRCA) it CAN NOT be changed or you will have meaningless amounts in the F0401 table because of mixed currencies
  2. Set up currency specific automatic accounting instructions
    • Multicurrency AAI items are optional and are used to automatically calculate and distribute currency gains and losses to the correct general ledger account. The potential for a currency gain or loss is due to exchange rate fluctuations that occur between either:
      • The time a voucher is entered and payment is issued (realized gain/loss).
      • The time a voucher is entered and the end of a period if the voucher is still open (unrealized gain/loss).
    • Unrealized Gains and Losses - These AAI items define the accounts that the system uses for unrealized gains and losses on foreign currency vouchers that are open at the end of a period:
      • PVxxx - foreign currency unrealized gain.
      • PWxxx - foreign currency unrealized loss.
      • PRxxx - foreign currency unrealized gain or loss offset.
      • To create an unrealized gain or loss amount, the system compares the amount of the original voucher to the amount of the open voucher (which is revalued based on the exchange rate at the end of the period) and creates a gain or loss for the difference. The system uses the account number assigned to PV and PW to create foreign currency unrealized gains and losses on open vouchers when you run the A/P Unrealized Gain/Loss Report (R04425). The system uses the account number assigned to PR to create foreign currency unrealized gain or loss offsets when you run the A/P Unrealized Gain/Loss Report. The xxx represents the currency code, which is optional, and xxxx represents the value of the G/L Offset field on the voucher.
    • Realized Gains and Losses - These AAI items define the accounts that the system uses for realized gains and losses on foreign currency payments:
      • PGxxx - foreign currency realized gain.
      • PLxxx - foreign currency realized loss.
      • To create a gain or loss amount, the system multiplies the voucher amount by the difference in the exchange rate between the original voucher and the foreign currency payment. The system uses the account number assigned to PG and PL to create foreign currency gain and loss amounts. The system creates a gain or loss entry when the payment is posted. The xxx represents the currency code, which is optional, and xxxx represents the value of the G/L Offset field on the voucher.

 

Scope

This document discusses multi currency Automatic Payments and manual payments within Oracle JD Edwards EnterpriseOne Financial system.

Details

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In this Document
Purpose
 Overview
Scope
Details
 Automatic Payments in a Foreign Currency
 Payment Group Generation
 Automatic Payments in an Alternate Currency
 Alternate Currency Automatic Payment Process
 Entering a Manual Payment in an Alternate Currency
 Process Realized Currency Gain and Loss
 Realized Gain/Loss on Foreign Currency Voucher and Payment Example
 Realized Gain/Loss on an Alternate Currency Payment Example
 Automatic Accounting Instructions (AAI) Setup
 Alternate Currency Payment Clearing Account AAI P7
 Unrealized Currency Gains and Losses (R04425)
 Example Unrealized Currency Gain and Loss
 Entering a Multi Currency Manual Payment
 Support Resource
References

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