Daily Exchage Rates

[thinktank]

I've a couple of doubts

1. Does foreign currency transactions use only daily exchange rates or it can be made to use period rates too.

2. Is it shared across all SOB in the same instance or can each book be configured to use a different set of exchange rates

3. What is the common practise to load daily exchange rates. Who and how normally it is done in the system?

Thanks
Sam

[ramesh.nalem]

Hi,

<b>1. Does foreign currency transactions use only daily exchange rates or it can be made to use period rates too.</b>

<b>ANS</b>: It uses both rates.

<b>2. Is it shared across all SOB in the same instance or can each book be configured to use a different set of exchange rates </b>

<b>ANS:</b> Yes, it will be shared across all SOBs in the same instance

<b>3. What is the common practise to load daily exchange rates. Who and how normally it is done in the system?</b>

<b>ANS: </b> The Currency Rates Manager allows you to manage all your currency rate information
in one place. You can:
? Enter Daily Rates.
? Upload Daily Rates or Historical Rates from a spreadsheet to Oracle General
Ledger.

From the General Ledger Navigator choose Setup > Currencies > Currency Rates
Manager. Select one of the following tabs: Daily Rates, Historical Rates, Period Rates, or
Rate Types.

<b>Cross Rates</b>

Establish a Cross Rate Rule:
? Enter a Rate Type.
? Assign a Pivot Currency (USD) to the Rate Type.
? Associate one or more contra currencies with the pivot currency (GBP, CAD,
EURO).
Enter daily rates between the pivot currency and the contra currency.
You can also accomplish this using a spreadsheet or SQL*LOADER to populate the
GL_DAILY_RATES_INTERFACE table.

Go to Spread sheet and select Oracle ->Uploade

Automatichally the Daily Rates Import and Calculation program run.

[thinktank]

Hi Ramesh,

Thanks for your inputs. I should have made my first question more clear.

If we enter a invoice/journal/receipt in foreign currency does it take the daily rate / period rate to convert into functional currency when we save the transaction.

If we can make the system to take either of these then where do we enable that option ?


At this point I am not referring to the revaluation yet.

2. Normally the daily rates on entered everyday by users are they are entered on monthly basis with some appromixate assumption on daily rates ?

Regards
Sam

[A_Surya_jagan]

when you enter foreign currency journal it takes daily exchange rate and
converts it into functional currency.
peroid rates are used mainly for revaluation and translation.

in real time during entering the foreign currency journal we give
spot as rate type and some trigger(defined by technical consultant)
will be fired and rate will be taken by the system from the internet.
(www.bloomberg.com).

just try to enter the foreign currency journals without entering the
daily rates.
regards.

Jagannadharao

[ramesh.nalem]

Hi,

J<b>ournals:-</b>
When you enter the Journals in Foreign Currency automatically it will convert them to the Functional currecny transactions.
You have to define the required setups before entering the journals.

<b>Invoice:-</b>

If you want to make a payment in other than funtional currency, you have to enable the Multi currency payments in Payables option, then define the required foreign bank accounts and enable the Multi currency payments option at the supplier site level.

Note: The payment currency and Bank account currecncy should be same.

[thinktank]

So for transactional records journals/invoices extra , the rate is taken from the daily exchange rate isn't (assuming no customisation made) and not the period rates .

Is it right ?

How about the second part ? for daily rates what is the general practise to enter. Do they enter every day morning or the rates are entered in month beginess with some approximate/rates based onthe general fluctuation trend ?