Replenishment Orders Generated With Incorrect Currency Exchange Rate (Doc ID 2924498.1)

Last updated on JANUARY 30, 2023

Applies to:

Symptoms

On : NA version, Operations & Maintenance

ACTUAL BEHAVIOR
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Merchandising: Replenishment Orders Generated With Incorrect Currency Exchange Rate

When a foreign currency PO is created using the UI, the exchange rate applied is the inverse of the rate in CURRENCY_RATES, which is expected. However, when a PO for the same supplier is created using replenishment processes, the exchange rate applied is the rate in CURRENCY_RATES, not inverted.

For example:
The current USD /GBP rate in CURRENCY_RATES is 1.2 (where GBP is the primary currency).
Replenishment is running for items from the USD supplier 886.
A replenishment PO (5001292839) was generated on 10-JAN-23 for this supplier, and the ordhead.exchange_rate = 1.2
A manual PO (5001292841) created by copying this replenishment PO on the Manage Orders screen on 11-JAN-23 has an ordhead.exchange_rate = 0.8333333333 (expected: 0..8333333333 = 1/1.2).
Similarly, a manual PO (5001297761) created using the Create Orders screen on 11-JAN-23 has an ordhead.exchange_rate = 0.8333333333.
Also similarly, a manual PO (5001292842) created using PO induction on 11-JAN-23 has an ordhead.exchange_rate = 0.8333333333.

The impact is that replenishment POs have the wrong exchange rate and receipts will be posted with incorrectly converted cost.

EXPECTED BEHAVIOR
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Currency to be correct

STEPS
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The issue can be reproduced at will with the following steps:
0. Ideally, in the test system find replenishment orders generated for a supplier whose currency is different to the primary currency (sups.currency_code != system_options.currency_code).
OR
1. Find a supplier with currency different to system primary currency; there should be some items for the supplier.
2. Put an item for the supplier on replenishment (order control = semi-automatic, stock category = warehouse stocked, location = a location with same currency as system primary currency); ensure the replenishment method and min/max settings are low enough that the process will generate a PO.
3. Note the currently effective exchange rate for the supplier currency in CURRENCY_RATES (where currency_rates.currency_code = sups.currency_code).
4. Run the replenishment batch processes to generate a replenishment PO.
5. Observe the output PO and compare the ordhead.exchange_rate with the exchange rate noted in Step 3.
6. Create POs manually for the same supplier (using UI or induction) and

BUSINESS IMPACT
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The issue has the following business impact:
The impact is that replenishment POs have the wrong exchange rate and receipts will be posted with incorrectly converted cost.

Cause

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