Foreign Exchange Gain Loss Calculation

During the Foreign Exchange Gain Loss calculation, the system considers the following types of financial transactions:

  • Payments (i.e. Pay Segments)

  • Credit adjustments which are created against a bill after the bill completion

  • Write-off adjustments which are created against a bill

  • Write Up adjustments which are automatically created when you match a payment against a bill using the Bill Weighted match type

  • Write Down adjustments which are automatically created when you match a payment against a bill using the Bill Weighted match type

Note: The system does not considers financial transactions which are created due to payment and adjustment cancellation.

To understand how foreign exchange gain or loss is calculated, see Foreign Exchange Gain Loss Scenarios.

You can calculate the foreign exchange gain loss when you have enabled the FT GL Extension feature. Oracle Revenue Management and Billing provides you a batch named Foreign Exchange Loss Gain (C1-FXLG) which calculates the foreign exchange gain loss. This batch considers payment and adjustment FTs when:

  • Division's Base Currency is different from the Payment or Adjustment Currency

  • Payment or Adjustment Freeze Date is different from the Bill Completion Date

  • Match Event ID exists in the financial transaction

  • FXLG_​CALC_​STATUS column corresponding to the financial transaction in the CI_​FT table is set to N or NULL

Once the foreign exchange gain or loss is calculated, two entries are added corresponding to each financial transaction in the CI_​FT_​GL and CI_​FT_​GL_​EXT tables. One entry for foreign exchange gain loss is booked against the distribution code for FXLG and another entry for foreign exchange gain loss is booked against the distribution code which is used for contract balancing. The foreign exchange loss is recorded as positive entry and the foreign exchange gain is recorded as negative entry. In the CI_​FT_​GL table, the foreign exchange gain loss is recorded in the financial transaction currency. And, in the CI_​FT_​GL_​EXT table, the foreign exchange gain loss is recorded in the division's base currency.

You must execute the Foreign Exchange Loss Gain (C1-FXLG) batch prior to the Assign GL Account to Financial Transaction (C1-GLASN) or Insert Records in CI_​FTTEMP (GLASSGN1) batch. For more information about these batches, refer to Oracle Revenue Management and Billing Batch Guide.