11.8.3.4 Source of Currency and Exchange Rate Information

Oracle Funds Transfer Pricing sources currency and exchange rate information from Rate Management > Currency and Currency Rates screens. Ledger migration should only be performed for currencies that are activated or enabled.

If currency code values that have not been activated are discovered in the ledger migration process, an error message is written to the process errors log, and the ledger migration process skips records with those values.

Calculation of Functional Currency Values

To calculate and write charge/credit values expressed in functional currency to the Management Ledger table, a situation in multi-currency implementations:

1. Choose between entered or functional Ledger Migration while defining the Transfer Pricing Process.
2. Derive charge/credit amounts in the entered or local currency first, using Transfer Rate and balance information expressed in those currencies, and then convert the calculated charge/credit values for the “As-of-Date” to the functional currency.
3. Assume the last date associated with the “As-of-Date” as the basis for Ledger Migration, and use currency exchange rates corresponding to that date to perform conversions to functional currency for charges and credits written to the Management Ledger table.
4. Use the following algorithm for Exchange Rate Access:
   • If the exchange rate exists, use the rate for the last day of the period being processed.
   • If no exchange rate exists for the last day of the period being processed, use the latest exchange rate available in the rates table for the period being processed.
   • If no exchange rate exists for the period being processed, use an exchange rate value of 1.