Bank Account Transfer Accounting Issue In Secondary Ledger
(Doc ID 2023952.1)
Last updated on MARCH 08, 2017
Oracle Cash Management - Version 12.0.0 to 12.2.4 [Release 12 to 12.2] Information in this document applies to any platform.
On : 12.1.3 version, Bank Statement Account
ACTUAL BEHAVIOR --------------- Bank Account Transfer accounting issue in secondary ledger
User transfered 500 GBP from Account Name 'BOA - Amsterdam - 612 - NLDAM - EUR - 5011' to 'BOA - Bromley UK - 609 - GBROP - GBP - 2016'. 'ABC (Netherlands) B.V.' and 'ABC (UK) Ltd.' are the owners (Legal Entities) of these two accounts respectively. These legal entities belong to NLDPRIMEUR and GBRPRIMGBP ledgers. NLDSECNUSD is a secondary ledger linked to NLDPRIMEUR primary ledger with Data Conversion Level as 'Subledger'.
Rate setup: In Cash Management, System Parameters has the Exchange Rate Type setup as 'PLCM Wire Transfer'. In Accounting Setup Manager, for Primary to Secondary Ledger Mapping, Currency Conversion Rules' Default Rate Type is set as 'PLCM Default Rate'. I have attached screenshot of above rate setup
Below are the exchange rates: PLCM Wire Transfer Rate PLCM Default Rate EUR to GBP 0.8 0.7235 EUR to USD 1.2 1.0743 GBP to USD 1.5 1.4850
Accounting for NLDPRIMEUR and NLDSECNUSD ledgers are attached. We understand the accounting in NLDPRIMEUR, however there is some issue in secondary ledger accounting. Secondary ledger should use PLCM Default Rate based on the setup. Why is line# 2 for Miscellaneous Expense using PLCM Wire Transfer Rate (1.5), rather than PLCM Default Rate(1.4850). Then why are two Balance lines (line# 4 & 5) using PLCM Wire Transfer Rate (1.5)? Also why Exchange Gain or Loss (line #3) is being hit(this will get clarified once we understand first two issues)?
EXPECTED BEHAVIOR -----------------------
BUSINESS IMPACT ----------------------- The issue has the following business impact: Due to this issue, users cannot .
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