Account: acrrued amount and settled amounts different due to exchange rate

(Doc ID 1987270.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Treasury - Version to 12.2.4 [Release 11.5 to 12.2]
Information in this document applies to any platform.


 Account: acrrued amount and settled amounts different due to exchange rate?

How to Account: acrrued amount and settled amounts difference due to exchange rate? For: TMM and ONCE type deals:

Using TMM deals on foreign currency anf functional currency is MXN. We run revaluation, accrue for interest and generate accounting entries on a daily basis.
We found that for foreign currency TMM deals we have a difference between the accrued amount and the settled interest amount on our functional currency.
The foreign currency amounts are ok.

That difference is originated because the exchange rate varies every day. So if we accrue and account on a daily basis, the journal entries for those accrual amounts are recorded using different exchange rates per day.
And when we settle the interest amount, that journal entry uses the exchange rate on that day (which will be different also!).

So, when we settle that interest we are going to have a difference (on our functional currency only) between the acrrued and settled amounts.

How do we handle this diffrence?


Differences in the exchange rate are calculated during the revaluation process and are recorded as gains and losses. The results are displayed for each deal within the revaluation details screen Col. Currency G/L and are journal using the amount type CCYREAL for each deal. Does this hold good here as well?


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