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 laterOracle 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
Num | Type | Amount | Functional Amount |
1 | Exchange Rate Variance | 0.00 | -85.77 |
2 | Item | 7400 | 6412.31 |
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
Num | Type | Amount | Functional Amount |
1 | Exchange Rate Variance | 0.00 | -8.50 |
2 | Item | 53.90 | 45.40 |
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:
- 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 - Migrate to 12.1.3 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
Changes
Cause
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In this Document
Symptoms |
Changes |
Cause |
Solution |
References |