Multi-Currency Handling (Oracle Cash Management User's Guide)


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Multi-Currency Handling

Cash Management handles foreign currency transactions during both automatic and manual bank reconciliation.

Cash Management recognizes three of four transaction scenarios:

Scenario Transaction Currency Bank Account Currency Exchange Rate

Domestic Functional Functional None

International Foreign Functional Calculated if not Provided

Foreign Same as bank account currency Foreign Required

Foreign Translated Foreign Different from bank account currency Not supported in Payables or Receivables.

Scenario	Transaction Currency	Bank Account Currency	Exchange Rate
Domestic	Functional	Functional	None
International	Foreign	Functional	Calculated if not Provided
Foreign	Same as bank account currency	Foreign	Required
Foreign Translated	Foreign	Different from bank account currency	Not supported in Payables or Receivables.

For both the International and Foreign scenarios, the bank statement transaction line must include, in addition to Currency, at least one of the following pieces of exchange rate information: Original Amount, Exchange Rate, or Exchange Rate Type and Exchange Rate Date.

Manual Reconciliation

When you are entering bank statement lines for a manual reconciliation, you can also enter the exchange rate information for each transaction. When you reconcile a Foreign scenario statement line, the statement line exchange rate information is the default for clearing the transaction. When you reconcile an International scenario statement line, the statement line exchange rate information is calculated.

Automatic Reconciliation

Cash Management's AutoReconciliation program performs validation checking of exchange rate information during bank statement import and reconciliation. The program also handles transaction matching differently for International and Foreign scenario transactions. See: Multi-Currency Matching.

Note: For the International scenario, if you don't provide exchange rates with your statement lines and the cleared amount (functional currency) matches the paid transaction amount (after conversion to functional currency), Cash Management computes an exchange rate as of the cleared date.

Multi-Currency Handling

Manual Reconciliation

Automatic Reconciliation

See Also