When you create a batch or enter a receipt or transaction that is not in your functional currency, Receivables displays a pop-up window to let you enter exchange rate information. Receivables uses this information to convert your foreign currency receipt and transaction amounts to your functional currency.
Suggestion: You can also define daily conversion rates. Daily conversion rates enable Receivables to automatically calculate exchange rate information when you enter foreign currency receipts and transactions. See: Entering Daily Rates.
The following profile options affect the appearance and behavior of the Exchange Rates window:
Journals: Display Inverse Rate
Currency: Allow Direct EMU/Non-EMU User Rates
Note: EMU is an acronym for the Economic and Monetary Union and refers to countries within the European Union who share a single currency called the euro.
If the profile option Journals: Display Inverse Rate is No, Receivables calculates the Functional amount as:
Functional Currency = Foreign Currency * Rate
Otherwise it is calculated as:
Functional Currency = Foreign Currency / Rate
The profile option Currency: Allow Direct EMU/Non-EMU User Rates controls whether you can enter an exchange rate when the receipt or transaction you are entering is in an EMU currency but your functional currency is not an EMU currency (or vice versa).
If this profile option is set to No and you specify a Rate Type of User, Receivables displays three additional fields in the Exchange Rates window. Use these fields to enter an exchange rate between your functional currency and the euro. When you do this, Receivables displays both the fixed (euro to EMU) and the derived (EMU to non-EMU) exchange rates. Refer to the section below for more information.
If this profile option is set to Yes and you specify a Rate Type of User, you can enter an exchange rate between your functional currency and the receipt or transaction currency (the additional fields do not appear in this case).
Rate Date: The date that applies to the exchange rate for your foreign currency. The default is either the batch date (if this receipt is part of a batch) or the receipt date.
Rate Type: Receivables provides the following conversion rate types:
Corporate: You define this rate to standardize rates for your company. This is generally a standard market rate determined by senior financial management for use throughout the organization.
Spot: Choose this rate to perform conversion based on the rate on a specific date. It applies to the immediate delivery of a currency.
User: Choose this rate when you enter a foreign currency for a receipt and you have not defined a daily exchange rate for the foreign currency. If you choose this rate type, you must enter the exchange rate to use. Receivables does not validate rates with a type of User.
If you select a Rate Type of Spot or Corporate, Receivables verifies that a rate exists for the date you enter and you cannot update the exchange rate.
Rate: The exchange rate for this receipt. If you entered a Rate Type of User, enter an exchange rate. You can have multiple currency exchange rates for the same date. Otherwise, the rate type you entered provides the default rate. You define your non-user exchange rates in the Daily Rates window. If you entered a Rate Type other than User, Receivables verifies that a rate exists for the Rate Date you entered.
Attention: The Exchange Rates window displays the following fields instead of the Rate field if certain conditions are met. For more information, see: Profile Options in Oracle General Ledger.
<functional currency> To EUR: Enter the exchange rate between your functional currency and the euro.
EUR To <transaction/receipt currency>: The fixed exchange rate between the euro and the EMU currency. This is a display-only field.
<functional currency> To <transaction/receipt currency>: The exchange rate between your functional currency and the transaction or receipt currency. This is a display-only field.
Note: The profile option Journals: Display Inverse Rate determines in which order the currencies in these field prompts appear.
You can change the rate type, rate date, and exchange rate of a foreign currency receipt, even if it has been transferred to your general ledger.
You cannot adjust the exchange rate of a foreign currency transaction once it has been posted or has had a receipt applied to it. To use a different exchange rate, you must reverse the transaction (delete it, credit it, or change the transaction type to one that has Open Receivable and Post to GL set to No), then recreate the transaction at the new rate.
Prerequisites
Enter a foreign currency receipt or transaction
To adjust the rate for a receipt, navigate to the Receipts or the Receipts Summary window.
Query the receipt.
Select the receipt, then choose Adjust Exchange Rate from the Tools menu.
Enter the GL Date and New Rate Date for this exchange rate adjustment (optional). The default for the New Rate Date and GL Date is the current date, but you can enter a new date. If the current date is not in an open period, the default GL Date is the last date of the most recent open period.
Enter the New Rate Type to convert your foreign currency amounts into your functional currency. See: Foreign Currency Transactions.
If you entered a Rate Type of 'User', enter the New Rate to convert your foreign currency amounts to your functional currency. Otherwise, Receivables determines the rate from the Rate Type and Rate Date.
If three additional fields appear, enter the exchange rate between your functional currency and the euro. See: Exchange Rate and Adjust Exchange Rate Field Reference.
Choose Adjust. Receivables saves this adjustment and updates the amount of this receipt in your functional currency.
To view the functional currency gain or loss resulting from the currency exchange rate adjustment of the receipt, choose Receipt History.
You can view exchange rate information for a receipt from either the Receipts or Receipts Summary window. You can view exchange rate information for a transaction from either the Transactions or Transaction Summary window.
Navigate to the Receipts or the Receipts Summary window.
Query the receipt.
If you are in the Receipts window, choose Exchange Rate from the Tools menu.
If you are in the Receipts Summary window, select the receipt, then choose Exchange Rate from the Tools menu.
To adjust the exchange rate, see: Adjusting an Exchange Rate.
Navigate to the Transactions or the Transaction Summary window.
Query the transaction.
If you are in the Transactions window, choose Exchange Rate from the Tools menu.
If you are in the Transaction Summary window, select the transaction, then choose Exchange Rate from the Tools menu.
To update the exchange rate, enter a new Rate Type (if the Rate Type is Corporate or Spot). If the Rate Type is User, enter a new Rate, then choose Ok.