R11i:AP: How to Handle Exchange Rate Fluctuation in PPR Payment Batch?

(Doc ID 2413296.1)

Last updated on JUNE 20, 2018

Applies to:

Oracle Financials for the Americas - Version 11.5.10.2 and later
Oracle Payables - Version 11.5.10.2 and later
Information in this document applies to any platform.

Goal

1. Responsibility: Oracle Payables - 11.5.10.2
Production and Test instances

2. Path: Payments -> Entry -> Payment Batches
3. Query a payment batch

In Argentina, there is a exchange rate variance during the latest weeks.
The users have identified an issue related with payment batches in foreing currency.

Finance team has defined exchange rate for 02-MAY-2018 early in the morning
and created and formatted a payment batch.

USD to ARS = 21.1

In the afternoon, exchange rate was updated to 21.45.
Then users have confirmed the payment batch.

Now the payment batch is showing the exchange rate 21.1 (formatted)
but functional amount for each payment have been calculated to 21.45.

PAYMENT_BASE_AMOUNT is taking 22.80 (exchange rate) at confirming payment batch.
But batch payment has been formatted with 20.25.

Argentina has been suffering exchange rate fluctuations during this month.
Finance team uses one exchange rate at the morning and another one in the afternoon.

Users have detected the issue during this month.
Users have entered 2 different exchange rate along the day.
It occurs for all transactions and suppliers.

Note:
The issue can happen for any country.
In 2018, it happened for the last 2 months for Argentina.

For example:

Payables should take one exchange rate during the full batch payment process.
09.00 AM exchange rate = 20.25
11.00 AM users perform batch payment - It has been formatted and confirmed PAYMENT_BASE_AMOUNT is taking 20.25
13.00 PM users perform another batch payment (named A001) - Status formatted.
13.30 PM exchange rate is updated to 22.80
14.00 PM batch payment (named A001) is confirmed. PAYMENT_BASE_AMOUNT is taking 22.80


WORKAROUND:
Users have to cancel the batch payment and re generate.

4. Test case

The issue has been reproduced.

CHECKRUN_NAME = EXCHANGE_RATE_9

corporate
EXCHANGE_RATE = 20.25

After formatting batch payment, exchange rate has been updated to 23.7.
Then EXCHANGE_RATE_9 was confirmed.
PAYMENT_BASE_AMOUNT = amount in pesos (ARS) x 23.7

5. Impact

The issue is affecting the Finance team / batch payment process.


Is this a normal behavior?
 

Solution

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