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During the Payables Transfer to General Ledger Program, General Ledger identifies cross-currency entries created in Payables. These entries have a category of 'Cross-Currency'. For each of these entries, General Ledger separates the entries by currency before balancing them. General Ledger ignores the out of balance errors. Then General Ledger creates a balancing journal entry that is charged to a clearing account. A clearing account is called a 'Suspense Account' in Oracle General Ledger.
Note: The entry to the clearing account will always be zero in your functional currency because the journal entry already balances in your functional currency.
You do not need to enable suspense accounting for your set of books to create cross-currency payments in Payables. You only need to define a suspense account for journal entries created by cross-currency payments.
When defining a Suspense Account for your set of books in the Suspense Accounts window in General Ledger, enter a source of Payables. See: Defining Suspense Accounts.
For example, your functional currency is FRF and you enter an invoice in 1000 FRF and enter Euro as the Payment Currency. The Payment Amount converts to 152.53917 Euro, at the fixed conversion rate of 6.555693, and is rounded to 152.54 Euro. The payment, converted back to your functional currency is 1000.0054, which is rounded to 1000.01. The .01 FRF difference is recorded in the Rounding account.
SINGLE CURRENCY. You can pay an invoice in only one associated fixed-rate currency.
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