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R12: AP/XLA: Different Accounting Entry Treatment for the Exchange Rate Variance Distribution (ERV) Line When Migrating From Version 12.1.1 to 12.1.3 for Foreign Currency Invoices (Doc ID 3060194.1)

Last updated on NOVEMBER 21, 2024

Applies to:

Oracle Payables - Version 12.1.3 and later
Oracle Subledger Accounting - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

Invoice number A was created and accounted for in version 12.1.1, where the Exchange Rate Variance (ERV) line from the invoice distributions was merged into a single Item Expense line in the accounting entries.

In contrast, invoice number B was created and accounted for after migrating to version 12.1.3, where the Exchange Rate Variance (ERV) line remained separate from the Item Expense, resulting in two distinct Item Expense lines.



Case 1 Invoice Number A

Distributions
Num Type Amount Functional Amount
1 Exchange Rate Variance 0.00 -85.77
2 Item 7400 6412.31

 

 

 

 

 

Subledger Journal Entry Lines
Accounting  Class Entered DR Entered CR Accounted DR Accounted CR
Item Expense 7400 0.00 6326.54 0.00
Liability 0.00 7400 0.00 6326.54

 

 

 

 

 

 

 



Case 2 Invoice Number B

Distributions
Num Type Amount Functional Amount
1 Exchange Rate Variance 0.00 -8.50
2 Item 53.90 45.40

 

 

 

 

 



Subledger Journal Entry Lines
Accounting  Class Entered DR Entered CR Accounted DR Accounted CR
Item Expense 53.90 0.00 45.40 0.00
Item Expense 0.00 0.00 0.00 8.50
Liability 0.00 53.90 0.00 45.40
Liability 0.00 0.00 8.50 0.00

 

 

 

 

 






The issue can be reproduced at will with the following steps:

  1. In 12.1.1 version, create a foreign currency invoice and match it to a purchase order ("Accrue on Receipt" unchecked) with different currency rates.
    Validate and Account the invoice.
    From Invoice Workbench, click the Distributions and click on Reports - View Accounting
  2. Migrate to 12.1.3 version
  3. Create a foreign currency invoice and match it to a purchase order ("Accrue on Receipt" unchecked) with different currency rates.
    Validate and Account the invoice.
    From Invoice Workbench, click the Distributions and click on Reports - View Accounting

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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