Applying Cross Currency Receipts
Use the Applications window to manually apply receipts that are in one currency to one or more transactions in different currencies. For example, you can apply a receipt whose currency is USD to one invoice denominated in German marks (DEM) and another in Canadian dollars (CND). You can apply receipts to invoices, debit memos, and chargebacks.
You can apply a receipt to an unrelated customer's debit items if the system option Allow Payment of Unrelated Invoices is set to Yes.
To apply cross currency receipts, the Receivables system profile option AR: Enable Cross Currency must be set to Yes. Additionally, you must define a Suspense Account for your set of books. See: Setting Up Cross Currency Receipts.
When you post a cross currency receipt application to the General Ledger, Receivables records a realized gain or loss amount. A realized gain or loss occurs when the exchange rate changes between the invoice date and the receipt date. See: Calculating the Foreign Currency Exchange Gain or Loss.
Note: In Release 11 of Oracle Receivables, you can only apply cross currency receipts using the Applications or the Mass Apply windows. You cannot apply cross currency receipts using any of the following methods: Post QuickCash, Lockbox, or Automatic Receipts.
You can also use the Mass Apply window to automatically select a range of invoices for cross currency receipt application. See: Automatically Selecting Invoices for Cross Currency Receipt Application.
You can use the Cross Currency Exchange Gain/Loss Report to review your cross currency receipt applications and the foreign exchange gain or loss for each. See: Cross Currency Exchange Gain/Loss Report.
Prerequisites
To manually apply a receipt to one or more transactions in a different currency:
1. Navigate to the Receipts window.
3. If the receipt is unidentified, enter the Customer or Customer Number who remitted this receipt.
Note: The Applications window is a folder form, so you can display additional fields by choosing Show Field from the Folder menu.
5. Select the transaction to which you want to apply this receipt from the list of values. Receivables displays the balance due in both the invoice and your functional currency.
6. Enter the amount to apply to this transaction (based on your customer's remittance information) in the Amount Applied field. Receivables performs the following:
- converts the amount to your functional currency and displays the result in the Amount Applied Base field
- updates the balance due in both the invoice currency and your functional (base) currency
7. Enter either the Cross Currency Rate used to convert the transaction amount to the receipt amount or the Allocated Receipt Amount. If you enter the Cross Currency Rate, Receivables calculates the Allocated Receipt Amount, and vice versa.
Receivables calculates the foreign exchange gain or loss for this application.
8. To apply this receipt to another transaction, repeat steps 5-7.
Note: The default Discount Taken is the amount of earned discounts available for this application, but you can change it. If the system option Allow Unearned Discounts is set to Yes, you can apply these discounts here. Receivables skips this field if this transaction is a credit memo. See: Discounts.
9. To place any remaining amount on account, create a separate application and enter 'On Account' in the Transaction Number field. The default amount is the unapplied amount of the receipt, but you can change it.
10. When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.
Automatically Selecting Invoices for Cross Currency Receipt Application
You can use the Mass Apply window to automatically select transactions for cross currency receipt application. The Mass Apply window lets you select transactions for application by entering selection criteria, such as a range of open balances, transaction types, or due dates.
If you have set up your system to use Cross Currency receipts, Receivables displays a Cross Currency check box in the Mass Apply window. Check this box to apply a receipt to transactions in different currencies.
If you set Cross Currency to Yes in the Mass Apply window, Receivables:
- selects all transactions that meet your selection criteria, regardless of their currency
- disables the Apply button (in this case you can only preview selected transactions; you need to manually create each cross currency application)
If you set Cross Currency to No, Receivables limits its search to transactions that are in the same currency as the receipt.
To automatically select transactions for cross currency receipt application:
1. Navigate to the Receipts window.
3. If the receipt is unidentified, enter the name or number of the customer who remitted this receipt.
5. Check the Cross Currency check box. This lets you select invoices regardless of their currency.
6. Specify the invoices to which you want to apply this receipt by entering Transaction selection criteria. For example, enter a range of transaction Types, transaction Numbers, Due Dates, or Balances. Leave a field blank if you do not want to limit the search to transactions matching that criterion.
7. Specify how to order selected transactions by entering Sort Criteria (optional). You can mark transactions by Balance Due, Due Date, Invoice Date, or Invoice Number and in Ascending or Descending order. For example, to order items with the largest balances first, choose Balance Due, Descending.
Suggestion: Use sort criteria to ensure that the invoices you want to pay first are listed first in the Applications window.
8. Enter an Apply Date. If the receipt date is later than the current date, the default is the receipt date; otherwise the default is the current date. Receivables uses this date as the application date for all invoices included in this application.
Note: The default Discount Taken is the amount of earned discounts available for this application, but you can change it. If the system option Allow Unearned Discounts is set to Yes, you can apply these discounts here. Receivables skips this field if this transaction is a credit memo. See: Discounts.
11. When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.
See Also
Reviewing Receipts and Applications
Cross Currency Exchange Gain/Loss Report