Currency Conversion

Oracle Revenue Management and Billing supports currency conversion using an exchange rate. The currency conversion feature is used only when the multi-currency accounts feature is enabled. In other words, you can use the currency conversion feature when the Allow Multi-Currency Accounts option type of the Multi-Currency Accounts (C1_​MLTCURACC) feature configuration is set to Y.

The currency conversion can take place during the following business processes which are configured in the system:

  • Bill Segment Generation

  • Adjustment Creation

  • Payment and Tender Creation

  • FT GL Creation

  • Transaction Aggregation

To enable the currency conversion feature, you need to attach the currency conversion algorithm at the division level. The system facilitates you to define different conversion currency algorithm for each business process. The currency conversion feature functions when the appropriate exchange rate is available in the system. Otherwise, erroneous results might occur.

The system allows you to define date or date and time based global and division-specific exchange rates. The date based exchange rate mean that the exchange rate is applicable throughout the day. However, the date and time based exchange rate mean that the exchange rate is applicable from that date and time onwards.

Note: At present, time is not passed as input from any module (such as, payments, adjustments, billing, transaction feed management, and so on) during currency conversion. Therefore, even if you define date and time based exchange rates and use the date and time based currency conversion algorithms at the division level, the system will not search date and time based exchange rate when multiple exchange rates are available on the same day. The system will randomly pick an exchange rate on that day. The implementation team has to build the custom logic to pass or input time to the date and time based currency conversion algorithms in order to derive the appropriate exchange rate.

The system might use the direct division-specific or global exchange rate (i.e. FROM CCY to TO CCY) or direct reverse division-specific or global exchange rate (i.e. TO CCY to FROM CCY) during currency conversion. If either direct or direct reverse exchange rate is not available, the system might use division-specific or global exchange rate through base currency during currency conversion. You can define the order in which exchange rate must be searched in the currency conversion algorithm.

While converting the amount from the source currency to the target currency (i.e. FROM CCY to TO CCY), the system uses the precision (i.e. decimal positions) of the target currency (i.e. TO CCY). For example, if you set the decimal positions for USD and INR to 1 and 2, respectively, the system uses 1 decimal position during currency conversion from INR to USD.

The system provides you with a facility to define whether you want to enable or disable the currency conversion feature for a rate component. If the currency conversion feature is enabled for a rate component, the currency conversion will take place while generating bill segments for the rate (i.e. rate component) based billable charges.

Related Topics

For more information on... See...
Currency Conversion Algorithms screen Currency Conversion Algorithms
Exchange Rate screen Exchange Rate (Used for Searching)
Exchange Rate screen Exchange Rate (Used for Viewing)

Parent Topic: Oracle Revenue Management and Billing Financial Services Business Processes