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Does PFT Engine Support Legal Entity Wise Exchange Rate Conversion? (Doc ID 2519156.1)

Last updated on AUGUST 19, 2019

Applies to:

Oracle Financial Services Profitability Management - Version 8.0.0 and later
Information in this document applies to any platform.
Oracle Financial Services Profitability Management (PFT)
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Enterprise Performance Management (EPM)


Question 1: Does PFT engine support legal entity wise exchange rate conversion?

For example:

- Functional Currency = AED
- Source ledger data currency = QAR
- Legal Entity = QATAR
- Exchange rate table has:
     AED to QAR value = 0.9 based on Qatar legal entity
     QAR to AED value = 1.05 based on UAE legal entity, which is not reciprocate of AED to QAR

When running PFT rule, it will pick the above rates from FSI_EXCHNG_RATE_DIRECT_ACCESS table, and will allocate to CREDIT and DEBIT accordingly.
But the source amount will not match with the CREDIT / DEBIT amount as engine first converts QAR -> AED using 1.05 and then AED -> QAR using 0.9.

Is there a way by which system can pick legal entity wise exchange rates and do the calculation?

Question 2: Can multiple functional currencies be configured for using at same time?

Question 3: Assuming one requires multiple functional currencies and/or multiple fiscal year definitions, may one establish ledger-specific selections of functional currency and fiscal year by manually updating LEDGER_CCY_AND_FISCAL_YR_INFO (one row per defined Management Ledger table) also in the case of business using LEDGER_STAT table (instead of Management Ledger, i.e. FSI_D_MANAGEMENT_LEDGER)?

Is this functionality of using multiple functional currencies not achievable for the case of using LEDGER_STAT?


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