Entered Amounts Of Receipt In Functional Currency Instead Of Foreign Currency The Deliver Event

(Doc ID 2164293.1)

Last updated on SEPTEMBER 11, 2017

Applies to:

Oracle Fusion Cost Management Cloud Service - Version 11.1.11.1.0 and later
Oracle Fusion Receipt Accounting - Version 11.1.11.1.0 and later
Information in this document applies to any platform.

Goal

PO  has been entered in the foreign currency USD. Note that customer functional currency is EUR. The PO has been received.
The Create Accounting program has been launched for Receipt Accounting . In the review journal entries :
• on the event class ‘Deliver to Expense’, the entered amounts in foreign currency (USD) are not displayed even after having selected “Show all” columns via the View button, only the accounted amounts in the functional currency (EUR) are displayed
• on the event class ‘Receiving’, both the entered amounts in the foreign currency (USD) and the accounted amounts in the functional currency (EUR) are displayed
User Expectation:
Receipt Inspection is a balance sheet account whose balance is subject to Revaluation in GL. Basically, revaluation recalculates the ledger currency amount for foreign currency balances at current exchange rates and generates a journal for the difference (revalued account vs CTA).

Consequently, as exchange rates fluctuate over time, a constant balance in foreign currency would vary in ledger currency.
If Fusion debit Receipt Inspection in foreign currency (as part of the Receipt) and don't credit Receipt Inspection in the same foreign currency (as part of Delivery), the balance of the Receipt Inspection account (in foreign currency) will never reduce (i.e. it will be wrong) and therefore, revaluation will be wrong. The Delivery "leg" must reflect the appropriate foreign currency (code) and amounts.

The issue seems to be that Receiving inspection is not getting cleared in Entered Currency as part of deliver event accounting. It is also incorrect to book expense or inventory on the deliver event using foreign currency as entered currency.
 

Solution

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