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PFT Difference in Mulit-Currency Allocation Results for the Same Rule in 5.6 Versus 8.0.4 (Doc ID 2416732.1)

Last updated on JULY 02, 2018

Applies to:

Oracle Financial Services Profitability Management - Version 8.0.4 and later
Information in this document applies to any platform.
PFT - Oracle Financial Services Profitability Management
OFSAA - Oracle Financial Services Analytical Applications
MultiCurrency
Multi-Currency

Goal

In PFT, when checking the results for the same allocation in 5.6 and 8.0.4, there appear to be variances.  For Rule 'XXXX', the configuration, Source and Driver Data are exactly the same in both environments. Still this rule is throwing different results in 5.6 and 8.0.4 version.  Multi Currency (MC) is enabled in both environments.

The source amount for this rule is in two currencies, ‘USD’ and ‘AED’.
In 5.6 version, the engine sums up the total amount irrespective of the currency in the target. However in 8.0.4 setup, the system first converts the USD amount to AED. After conversion, it then sums up the amount in AED for Allocation in the target.

In 8.0.4 version with MC - ON, the SOURCE/DRIVER records are first converted into Functional currency & operators applied and then converted back to output currency while posting.


QUESTION 1: Suppose there is a case where Functional Currency is 'AED' and Actual currency is 'USD' .
The exchange rates table has rates for both  : (FROM 'AED' TO 'USD') and (FROM 'USD' to 'AED'). However, these rates are not the inverse of each other as the month end closing rates will be different for US and UAE.
However, because of the above said logic the final PFT allocated amount is not proper as first it is converted to source amount and then to target amount.
Is there a way to avoid this source conversion?

QUESTION 2: Please provide details about the way current calculations are happening for both cases with Multi Currency ON and OFF.

Solution

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