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Service Contracts Sends Incorrect Conversion Date To AR For Foreign Currency Transactions (Doc ID 1138984.1)

Last updated on FEBRUARY 03, 2019

Applies to:

Oracle Service Contracts - Version 12.1.1 and later
Information in this document applies to any platform.
***Checked for relevance 07-MAR-2013***


When a contract currency is different to the functional currency, the user must enter the conversion date and conversion rate type on the contract.  The conversion rate is retrieved from the GL conversion setup (depeding on the conversion rate type selected).  When the contract is billed this conversion rate is used to pass information to AR for the entire life of the contract.  This means that a very old conversion rate and date can be passed for long contract.  This can violate US GAAP.

Steps to reproduce:
1. Go to (R) Service Contracts Manager (N) Launchpad
Tools > New
2. Create a new service agreement contract in GBP (functional currency is USD)
- lets say the contract start date is 01-APR-2010
- enter Currency Conversion type = Corporate and Date e.g. 31-DEC-2009
- the rate will be populated
3. Sign and approve the contract
4. Run Service Contracts Main Billing
5. In the AR interface table will see that the records created when the contract was billed show:
Conversion Date = 31-DEC-09
Conversion Rate = value shown on the contract


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