Foreign Multi Currency Bank Account- R12

[abhyankarnarayan]

Hi Folks,

I am in 12.0.6. Following is the scenario:

Functional Currency USD (As the HO is in US)
Bank Account Currency QAR (As the client is in QATAR)
Transaction Currency GBP (As the PO was in GBP)

My bank account for QAR is multi currency enabled. I paid the GBP invoice from the QAR bank account and now am trying to reconcile the payment. But it is not allowing.

As per the metalink note - 743802.1 and 754852.1, I can not pay a foreign currency Invoice from the foreign currency bank account). This means, I can not pay a GBP invoice from the QAR bank account. Is there any business justification for this? Oracle says its not an intended functionality. I am not clear why it is not an intentional functionality.

Does any one encountered such scenario? Can anyone suggest me how to handle this particular situation?

Thanks in advance,
Narayan

[abhyankarnarayan]

Hi,

Has anybody encountered such an issue when the bank account currency is different than the functional currency and there is a need of foreign currency payments?

Narayan

[hiszaki]

Hi Narayan

This is a common problem in AP. You can't pay invoice with foreign currency. otherwise you can't use different currency in payment that the invoice currency.

The only case for use this facilities is that use fixed rate then use the EMU functionality.

Thanks
Hisham

[abhyankarnarayan]

Hi Hiszaki,

Thanks for the response.
But I am not using a different currency in payments than the invoice.
My invoice currency and the payment currency is same.
My bank account currency is different than the functional currency.
And my transaction currency (Invoice/Payment) is different than the Bank account currency and functional currency.

Its like:

Functional Currency : USD
Bank Acc Currency : QAR
Transaction Currency : GBP

I need to reconcile this line.

Thanks,
Narayan

[abhyankarnarayan]

Hi Folks,

Please let me know, can I do something like this?

The Qatari Riyal bank account can be defined in the system as USD Account (Functional currency).
Now I make all the payments (whatever currency) from this account.
Bank statement will be requested from bank in USD, else manually converted in USD (QAR and USD is pegged).

Will it create problems in reconciliation?
Is this solution okay??

Thanks,
Narayan