Payment currency is different from Invoice currenc

[hiszaki]

Dear All

I would like to check with you a solution I had check it on Test server. It is for pay in different currencies then the invoice currencies.

Our company has 1 ledger & using EGP currency as a primary currency. So times we need to pay to supplier with USD or EUR for invoices with EGP currency or pay in EGP for the invoices with USD currency.

I think to use the currency derivation function in the G.L as define EGP (our primary currency) as a EURO currency & define the other currencies (USD, EUR, ..) as a EURO derived & enter the factor. SO after I do this I can use the payment field in the invoices screen so I could enter the invoice with EGP then choose to pay this invoice with other currency USD & it's work.

My Question is that is this solution is applicable, is there are any other effects can made this solution is not working fine or what is your opinion.

Thanks for your cooperation
Hisham

[letsdoit8217]

Hi Hisham,

This is the correct solution for booking an invoice in one currency making payment in another currency.

Regards,
Sachin

[hiszaki]

Dear all

I would like to share this solution together. This problem already exist in our business & the workaround for it may be not suitable for our users especially for the business which depends on the foreign currencies.

I had test this solution on the test server but I don't know the impact of this solution in other modules like GL so we can test solution & get the feed back to know the right solution for this issue.

Thanks for your cooperation
Hisham Zaki

[pinnaka.financial]

hi
hisham
plz check it once
I think cross currency option is not available in Payables
it is available in Receivables.

Plz can u give Elobiratly about that GL option.

[oracleapps1983]

Will this work only on EURO currencies or like INR to USD also

[hiszaki]

Hi oracleapps1983

I think you can test this scenario on currency INR to USD but you must choose your primary currency to make it as EURO currency.

This suggest solution need to tested more times & insure these no any effects at the GL or the other modules to use it.

So I test according to our scenario but may be other person has an comments for this solution so I wait you feed back.

Thanks
Hisham

[kenver]

Hi, hiszaki,
Thers is a solution for a customer of mine.
They Primary Currency is USD. And some times they need pay in CNY for the invoices with USD currency.
What can we do? May be ...
1st, In GL : Create a CNY currency Journal (rate CNY --> USD is 7:1). And make it's Account like,
Dr : Clearing Account (Buy) 700 (CNY) 100 (USD)
Cr: Cash(CNY) 700 (CNY) 100(USD)
2nd, In GL : Create another Journal with USD currency. Make this Journal Account like,
Dr: Cash(USD) 100 (USD)
Cr: Clearing Account (Buy) 100 (USD)
3rd, In AP, pay in USD for the invoices with USD currency.
It's Account is,
Dr : Liability 100 (USD)
Cr: Cash(USD) 100 (USD)

Hope this can help you~~

BR,
Kenver

[oracleapps1983]

Hi to all who contributed to this topic..

Every one is speaking only in the point of GL. What happened to AP module.

When invoice is made in USD (Primary) and making payment to supplier in CAD... Continue from this... (Dont bring GL concept in middle and also those journal entries).

[hiszaki]

Hi oracleapps

The main point of this issue is using in AP module so what I ask about is that I test this solution in AP & it seems it work fine but I want to check if there are any side effect of using this function according to the previous suggesting.

If you can use this function without any side effect in all modules (AP/GL/CM) I think it will useful for us specially we already use this function in our daily works & it's found in the AR module.

Hisham

[umamahesh_jv]

Hi Hisham,

Can u tell elobarately about your solution means tell me about GL derivation function and give the navigation for that. r u using r12 or 11i?




Regards
Mahesh

[oracleapps1983]

AS you said in AR it is possible but for AP it is different.. Pls check and Reply

Imp: that obligation of client to make payment to vendor in Different other than Promised Currency type.

What my suggestion is Cancel Invoice and Related Purchase Order. Raise the invoices for the making currency in clients books.

Let me know is there any mistake what i said in the above suggestion

Thanks

[kenver]

[quote]Hi to all who contributed to this topic..

Every one is speaking only in the point of GL. What happened to AP module.

When invoice is made in USD (Primary) and making payment to supplier in CAD... Continue from this... (Dont bring GL concept in middle and also those journal entries).




<i><div align="right">Originally posted by oracleapps1983

[ksribhas]

In ALL versions of AP, Payment and Invoice should be in one currency only.

If the currency of invoice = functional currency of the SOB, Payment should also be in the same currency

If the currency of invoice is a foreign currency, exchange rates should be defined, payment can be made in the same foreign currency.

[yun]

[quote]Hi, hiszaki,
Thers is a solution for a customer of mine.
They Primary Currency is USD. And some times they need pay in CNY for the invoices with USD currency.
What can we do? May be ...
1st, In GL : Create a CNY currency Journal (rate CNY --> USD is 7:1). And make it's Account like,
Dr : Clearing Account (Buy) 700 (CNY) 100 (USD)
Cr: Cash(CNY) 700 (CNY) 100(USD)
2nd, In GL : Create another Journal with USD currency. Make this Journal Account like,
Dr: Cash(USD) 100 (USD)
Cr: Clearing Account (Buy) 100 (USD)
3rd, In AP, pay in USD for the invoices with USD currency.
It's Account is,
Dr : Liability 100 (USD)
Cr: Cash(USD) 100 (USD)

Hope this can help you~~

BR,
Kenver


<i><div align="right">Originally posted by kenver