Currency-Aware Weighted Average Rates for Plug Entries

The Weighted Average Rate Calculations task component now supports Currency as a configurable matching dimension for weighted average TP or Add-On rate calculations based on source accounts, for Balance Reconciliation plug entries. For functional-balance reconciliation, Currency can be excluded so that source balances in multiple currencies are converted to the ledger functional currency using latest available exchange rates. For entered-balance reconciliation, Currency can be included to match plug entries with source records in the applicable local currency while calculating weighted average rate.

Supports accurate weighted-average transfer and add-on rates for multi-currency reconciliation plugs. The matching approach can be aligned with whether reconciliation is performed on functional or entered balances, reducing manual rate assignment for plug records.

Steps to enable and configure

1.    In Weighted Rate Calculations, optionally exclude Currency from matching dimensions for functional-balance plug entries in ledger functional currency. The processor considers source records across currencies and converts balances to ledger functional currency using applicable exchange rates before calculating weighted average Transfer and Add-On Rates.
2.    For entered-balance plug entries in local currency, include Currency to match only source records in the same currency.
 

Tips and considerations

Regression Testing Recommended.

Key resources

https://docs.oracle.com/en/industries/financial-services/ofs-analytical-applications/profitability-balance-sheet-base/index.html