Objective:
In this article, we are going to discuss the Cross-Currency Payments enhancements in the Oracle Fusion Payables.
Cross-currency payment: It is referred to as a payment used to pay invoices in any of the currencies, irrespective of the invoice currency. Here’s an example: we can make a payment for invoices in Canadian Dollars. In this globalized world, the transactions of business environment customers go across many countries. Also, several customers are looking for opportunities for a business across many countries in the world. To operate globally, they are required to streamline their look for opportunities to improve operational efficiencies for the customers.
Cross-currency payments are the payments made in a currency which, different from the invoice currency, is one of the most common payment scenarios for the users/customers going to many business worlds. Especially for customers in Asia, Europe, and Latin America, cross-currency is a common practice. Cross-currency payments address all these challenges faced by the users/customers and help them very effectively manage the broad transactions.
Enhancements Overview of Cross-Currency Payments:
Selecting invoices with the invoice currency, which is different from the currency payment, creates cross-currency payments.
Cross-currency payments help in creating invoices with various kinds of invoice currency.
In invoice, currency relieves liability, and in payment currency credit cash.
At present, invoices can be done with the payment currency and are different from the invoice currency. The field of payment currency has been added to the pages of invoices to support this enhancement; this field is also shown in the page mode of “Show Mode.” At the same time, creating the invoice, once the supplier invoices are created with a payment current that is different from the invoice currency. Payment Currency has been added to the pages of invoices to support this enhancement; this field can be shown on the creation of the invoice page.
The feature of cross-currency payment is supported for the invoices prepayment type. A prepayment invoice type can be created as a cross-currency invoice; that is, the invoice currency is far different from the payment currency. The application of the prepayment feature is enhanced in order to support the transactions of cross-currency. The user/customer can apply the prepayment to an invoice offered; the currency of invoice and prepayment invoice currency is the same.
Let’s now move into Oracle Fusion Procurement Offerings.
Oracle Fusion Procurement Offerings:
Given below are the modules that include in Oracle Fusion Procurement:
Sourcing: In this type of module, RFQ is designed, and that can be sent to the suppliers to have their presence.
Self-Service Procurement: This module is very much similar to the e-commerce sites like Yep me, Flipkart, Amazon, etc., where the user can create requisition by choosing the catalog’s products. The user/customer can compare the products by the side and can shop for the product selected.
Purchasing: In this module, basic procurement, like creating the purchase order, is handled.
Procurement Contracts: Based on certain conditions, we can establish the contracts. It can also approve the process.
Supplier Portal: This module is very much similar to the i-supplier portal in R-12.
Key features of Oracle Fusion Procurement:
Given below are the features of Oracle Fusion Procurement:
- Interactive training and help.
- Consumer user experience.
- Requester analytics – prices compared with the help of graphs and charts.
- Best in the management of class catalog – Self Supplier procurement is an example.
- Support for assignments and notes.
- Flexible accounting rules.
- Negotiating planning with recent activities, sourcing calendar, and recommended actions.
- Smart forms.
- Online supplier negotiations.
- Guided negotiation creation with negotiation templates and styles that are reusable.
- Sourcing activities’ consolidated view for suppliers and buyers.
- Collaboration with the key stakeholders.
- Support for decentralized, centralized, and hybrid procurement companies.
- Spreadsheet support for award analysis and supplier activities.
- Multi-language and multi-currency support.
- Buyer work area.
- Control approvals by business unit, amount, item, account segment, location, and category.
- Streamlined changed management and order processing.
Foreign Currency Transactions:
The user/customer can enter all invoice types, including expense reports, prepayments, and recurring invoices, in a foreign currency.
One thing that must be noted is, suppose the invoice currency is considered as a fixed-rate currency in such a way that EMU or another euro currency, the customer can pay the invoice in the associated fixed currency rate.
When a user enters an invoice, the payables use the exchange rate that a customer selects to convert the invoice distributions into the ledger currency. Also, the user can define the ledger currency during the ledger setup. Suppose you create a foreign currency invoice payment. In that case, the payables use the exchange rate in which the user enters at that particular time in order to convert the payment lines into the ledger currency. Any difference in the ledger currency between invoice payment and invoice entry is recorded as the realized loss/gain.
When the user reconciles the payments with the Oracle Cash Management, the Payables can also create loss/gain accounting entries to record the differences between the cleared payment amount and the original payment amount due to the exchange rate fluctuations.
The transactions should have any required exchange rates before the user can account for them. Also, the payables create accounting entries in order for the payments and invoices in both the foreign and functional currency.
You have to use a bank account with the payment document to make a foreign currency payment that can also be used as a payment that is either defined for the foreign currency or multi-currency.
Entering Invoice Currency:
The user can pay the invoices in either an associated fixed-rate currency or the same currency that used to enter them. Also, the user can change or enter invoice currency defaults at five subsequent times. While doing each of these steps, the user can override the default designed by the earlier step:
- Supplier Entry
- Payables Options
- Invoice Batch defaults
- Supplier Site Entry
- Expense or Invoice Report Entry
For the invoice distributions, the invoice currency is the default, and this type of invoice distribution currency default can’t be changed.
Making Foreign Currency Payments:
In order to pay the invoices of the foreign currency, the user must have payment documents and bank accounts that are defined well for the payments of foreign currency. Also, the user must use any one of the below combinations:
- A multi-currency bank account with the document of payment that can use the format of multi-currency. If the customer/user uses a format of multi-currency, then he must pay the payment currency at any of the payment times.
- A foreign currency bank uses a payment format that has been defined for the intended foreign currency with a payment document.
- A multi-currency bank account with the payment document can use a payment format defined for the intended foreign currency.
Conclusion:
Hope you understand the concepts of cross-currency payments and procurement offerings in the Oracle Fusion from the above article. Still, if you have any queries, feel free to contact Gologica: 82969 60414.
