INCORRECT ACCOUNTING GENERATED FOR FOREIGN CURRENCY PAYMENT CLEARING (NO CROSS CURRENCY) (Doc ID 794076.1)

Last updated on MAY 18, 2010

Applies to:

Oracle Payables - Version: 12.0.3 and later   [Release: 12 and later ]
Oracle Cash Management

Symptoms

The payment clearing accounting is not creating cross currency accounting entries. If the bank currency is different than the payment currency, a cross currency entry should be made when a payment is cleared. 

So as an example, consider the following setup:

Functional currency : USD
Invoice currency : EUR
Payment Currency : EUR
Bank currency : USD

An invoice created for 4265.70 EUR, and paid for 4265.70 EUR, but cleared on a US bank account should have the following accounting.

CURR  ACCOUNTING CLASS  ENTRD DR  ENTRD CR  ACCTD DR  ACCTD CR
====  ================  ========  ========  ========  ========

EUR   CASH CLEARING      4265.70             1442.97
EUR   CROSS CURRENCY               4265.70             1266.16
EUR   GAIN/LOSS                          0              153.81
EUR   GAIN/LOSS                          0               23.00
USD   CROSS CURRENCY                     0             1266.16
USD   CASH                     0             1266.16

 

Instead, the accounting is created as follows:

CURR  ACCOUNTING CLASS  ENTRD DR  ENTRD CR  ACCTD DR  ACCTD CR
====  ================  ========  ========  ========  ========

EUR   CASH CLEARING      4265.70             1442.97 
EUR   GAIN/LOSS                          0              153.81
EUR   GAIN/LOSS                          0               23.00 
EUR   CASH                         4265.70             1266.16




 

Cause

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