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This article will explain in detail how AP cross-currency payment is. The content of the article is of high quality. Therefore, Xiaobian shares it with you for reference. I hope you will have a certain understanding of relevant knowledge after reading this article.

AP Cross-Currency Payments

AP allows cross-currency payments, but it is developed for transactions between EU member states. Even if you enable multi-currency, it is not supported, because in AP, the payment currency of invoices must be the same as the payment currency. Of course, when invoices are written off for prepayment, the currencies of both must also be the same. If you do not set the currency to European or Eurocurrency, you cannot change the payment currency at the invoice header level when you create an invoice if you enter payment in a different currency than the invoice. But remind: Oracle AP cross-currency payment BUG, you must test in the test environment, and then transfer to the formal environment.

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And it is defined as a foreign currency originating from Europe. When inputting invoices in this currency, the exchange rate is EMU Fixed, and it is not allowed to change. It is inconvenient to operate! It is suggested that alternative ways of doing this, if indeed cross-currency payments are made, may be used. For example, first pay in the same currency as invoice currency (you can establish a virtual bank account in this currency, and select a transit account for cash account). The currency of the actual payment is then converted to this virtual payment currency. Example: If the functional currency is CNY, the company does not have a USD bank account, but imported materials must be entered into purchase orders and invoices in USD. This is the case. The process is equivalent to buying foreign currency.

Metalink's reply to the problem of enabling cross-currency is as follows:

QUESTION

=========

How to use Euro currency and Non-Euro currencies to achieve cross-currency payments?

RESEARCH

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NOTE:309159.1: Cross Currency Payments In Payables

ANSWER

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Cross Currency between EMU Currencies can achieved because Euro is now the common currency for Duesche Mark, Frac, Irish Pou

nd all going to One currency. So as per the common currency a fixed rate is deci

ded among these currencies across.

This cannot be achieved for other non EMU currencies because of fluctuating exchange rate between any two Non EMU Currencies

General processing of cross-currency payments:

USD Invoice , if you pay in RMB, the method is to adjust RMB and USD accounts in GL first, and then use virtual USD Bank Account for Payment. However, due to the different time of Inovice and Payment operation, the exchange rate of USD to RMB will be different, resulting in the inconsistency between the actual bank's functional currency (RMB) and the system's bank deposit, resulting in different account silver. Finally, usually according to the actual difference, make a Memo or Invoice of the base currency to make adjustments. To ensure bank reconciliation.

Use transit subjects to achieve

1. In AP, when payment is made, the foreign currency is transferred to the bank for payment, and the CNY to be paid is converted into USD at the current exchange rate. Enter the amount column and pay.

DR: Accounts payable

CD: Transit Bank-USD

2. In GL, make a voucher manually

DR: Transit Bank-USD

CR: Bank Deposit-USD

Set up the bank to pay in multiple currencies

The payment format selected at the time of payment must be the same as the payment format selected in AP INVOICE before writing off.

Consider this:

1. Set up a transit bank account [Bank Class].

2. The amount to be paid is transferred from the bank account to the transit bank account.

3. Payment at AP Transit Bank.

Premise: Payment format of invoice should be set same as payment format in payment

1. Payment Method Options for Payment Format Multi-Currency

2. When setting up a bank account, you can select both functional currency and foreign currency for multi-currency payment (as long as the currency has not been used);

3. For bank payment documents, add multi-currency document names, such as USD format

4. For payment, select the bank in the currency to be paid, select the document in the currency to be written off, and the payment should be the amount to be paid, which should be converted into the amount in another currency of the invoice to be written off by using the accounting exchange rate. Cancellation of invoices.

5. However, invoices created in functional currency are not allowed to be paid in foreign currency accounts.

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