How Assets Added Through Oracle Payables Are Cleared in Secondary Ledgers

When you enter an asset purchase invoice in Oracle Payables, it transfers the asset purchase invoice amount to the secondary ledger.

The secondary ledger currency conversion rate used for Payables invoice accounting is synchronized with the rate used by the asset addition in the secondary ledger asset book, even when the primary and secondary ledger currencies differ.

In the secondary ledger, Oracle Assets uses the same currency conversion rate for the amount transferred by Payables that was used for the asset cost when the asset addition is copied to the tax book.

Using the same conversion rate ensures that the clearing account balances are fully cleared between the Payables and Assets subledgers, because the invoice amount accounted in Payables and the asset cost capitalized in Assets are the same.