How Currency is Converted in Accounting Contracts

Revenue Management supports one currency per accounting contract. In other words, within an accounting contract, only source lines with the same entered currency are grouped into the same accounting contract.

Currency conversion in Revenue Management is done at the performance obligation level. All components within a performance obligation use the same conversion rate type, date, and rate. However, the performance obligations within a contract can have varying currency conversion details.

For implied performance obligations, ensure that they:

• Use the same currency conversion rate type, date, and rate as the source or parent performance obligation.
• Have the same entered currency as their parent.

For contract revisions:

• When you add promises to an existing performance obligation, the added source lines must have the same currency conversion rate type, date, and rate as the modified performance obligation.
• When the conversion details vary, the application creates one or more new performance obligations.
• When adding performance obligations to an existing accounting contract, the application creates the new performance obligations with the currency conversion details as specified on the source document or default setup that was done in the Manage System Options for Revenue Management page.
• The application first applies the conversion details provided on the source line. If no conversion details are provided, then the application automatically applies the conversion details defined in the Manage System Options for Revenue Management page by default.