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Cross Currency Payments in Payables [message #216163] Thu, 25 January 2007 06:24 Go to next message
padawadkar
Messages: 4
Registered: January 2007
Junior Member
Hello Experts

I am Ora Apps Functional guy & currently handling P2P...

PROBLEM :
A person in Japan receives the vendor invoices in Singapore $ (SGD) from a vendor in Singapore. Payment of these invoices are made from a USD denominated bank account. I believe that the vendor invoice should be entered into the payables module in SGD.
I would imagine that the payment should be marked paid in USD and the payables module should automatically calculate a gain or loss from the date the invoice was entered and the date it was paid. By noting the payment in USD, payables should also send a USD credit to the GL bank account,which is correct as the GL bank account should maintain its balance in the currency that the actual bank account is denominated.
Can anyone tell me how do I resolve this issue. Thanks to mentioned the steps to enter the cross currency payments in payables module.


Thanks in advance
Prasad
Re: Cross Currency Payments in Payables [message #216286 is a reply to message #216163] Fri, 26 January 2007 02:34 Go to previous messageGo to next message
Littlefoot
Messages: 20901
Registered: June 2005
Location: Croatia, Europe
Senior Member
Account Moderator
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Re: Cross Currency Payments in Payables [message #216299 is a reply to message #216163] Fri, 26 January 2007 04:20 Go to previous message
David.K.Dickson
Messages: 413
Registered: October 2005
Location: Surrey, England
Senior Member
The functionality in Release 11i (and earlier) is that Payables will only generate a payment in the currency in which you enter the invoice, so if you want to pay the invoice in SGD, then you have to enter it in SGD, but if you want to pay it in USD, then you have to enter it in USD. I have been told that it is planned that Release 12 should have the ability to pay Invoices in a currency other than the entered currency, but we will have to wait and see.

Other points to note:-

It doesn't matter what your Functional Currency is. Payables will handle payments made in any currency that you have enabled and convert them into your Functional Currency.

You must have a Payables Bank Account which is either in the Payment Currency or has the Multiple Currency flag set.

Payables will only generate a payment in the currency in which you enter the invoice, but I believe that you can manually pay the invoice in a different currency, then manaully match the payment to the invoice. You should confirm this in a TEST environment before trying it in PRODUCTION.

If you enter an invoice in one currency and later decide that you want to pay it in another currency, then you can either make a Manual Payment (see above) or raise a Debit Memo for the original Invoice (and match them) and then re-enter it in the Payment Currency.

As always, you should confirm anything you are unsure of in a TEST environment before trying it in PRODUCTION.

Cool HTH

David
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