CREATEPO: Foreign Purchase Requisition Exchange Rate Different Than Final Purchase Order Exchange Rate
Last updated on JULY 14, 2016
Applies to:Oracle Purchasing - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.1.3 version
Purchase orders (PO) autocreated automatically from requisitions using the Createpo workflow do not maintain the requisition currency, but rather take today's corporate rate in the PO.
The newly created PO should have the user rate specified on the requisition.
The issue is best described in this sample scenario below:
Functional Currency is ZAR
b) Sequence steps:
1. A Contract Purchase Agreement (CPA) was created in currency USD with amount agreed as USD 100000. The exchange rate between USD and ZAR is 10(1 USD = 10 ZAR) and the
contract date is 10-Jan-2011.
2. A Requisition was created on 01st Feb-2012 referring the CPA with the currency as USD for 10 Quantity with unit price as 50 USD and hence the amount is 500 USD. The exchange rate between USD and ZAR is 20 on 1st of Feb 2012 (1 USD = 20 ZAR).
3. A Purchase Order was created automatically from the Requisition document on 03rd of February 2012 and the exchange rate between USD and ZAR is 25 (1 USD = 25 ZAR).
When the foreign currency Requisition is created into the PO then the unit price specified in the Requisition should flow into PO, but this is not happening. The application behaves as specified below:
a) On Requisition approval, the Requisition unit price is converted into functional currency value at Requisition exchange rate. The unit price of 50 USD is converted into 1000 ZAR (1 USD = 20 ZAR in the
b) When the PO is created, the unit price that is derived and stored in the Requisition is converted into
foreign currency at the order creation dates exchange rate (in the case here, the exchange rate between USD and ZAR is 25 on 03rd Feb 2012 and hence the unit price of 1000 ZAR is converted into 40 USD
(1000/25) which is different from Requisition rate of 50 USD.
It is expected that the rate in the order document is the same as the rate specified in Requisition document.
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