Multi currency clearing in cash management

[nass_kp]

Hi Friends

Please help me with the following business scenario.

Client have their business operations running in Taiwan(Functional Currency is TWD) .They are having 3 BofA(bank of america accounts),One is in Taiwan whose currency is TWD(Taiwan Dollar), other in SIngapore whose currency is USD and one in Taiwan whose currency is TWD.All these bank accounts are under singel LEGAL Entity

As per their treasury policy, they will make foreign currency payments using 2 USD bank accounts(Singapore, Taiwan).

They receive invoices in TWD, JPY, EUR and USD.

Since they need to use above 2 USD accounts to make foreign currency payments, it cannot be accomplished with standard functionality (as their Functional currency is TWD, Invoice currency is JPY, EUR etc and they make payments from above 2 USD accounts).

They have 3 ledgers

Primary Ledger:Taiwan currency(TWD)
Secondary Ledger:Taiwan(STAT)
Reporting Ledger: Reporting Ledger(USD)

They planned a work around which is given below:::

Work Around::-


Workaround ?
Setup 2 sub accounts for each USD account
Setup a USD Bank account, to make USD payments only
Because the payment is in USD, there is no impact on the Reporting Ledger.
Oracle automatically calculates the realized gain or loss to the Primary Ledger
Batch processing is possible (eg BoA payment file).
Setup a TWD ?clearing? Bank account using the same bank account number, to pay other currencies eg JPY, EUR etc.