There are four seeded conversion rate types
in Oracle Fusion applications:
- Spot
- Corporate
- User
- Fixed
Spot, corporate, user, and fixed conversion
rate types differ based on the fluctuations of your entered foreign
currency and your company procedures for maintaining daily rates.
| Rate Type |
Usage |
|---|
| Spot |
For currencies with fluctuating conversion rates or
when exact currency conversion is needed. |
| Corporate |
For establishment of a standard rate across your organization
for a stable currency. |
| User |
For infrequent entries where your daily rates for
the entered foreign currency are not set up. |
| Fixed |
For rates where the conversion is constant between
two currencies. |
If you have infrequent foreign currency transactions,
the user rate type can simplify your currency maintenance while providing
an accurate conversion rate on the date of the transaction.
Scenario
You are the general ledger accountant for In Fusion
America Inc. You are entering a journal entry to capture three transactions
that were transacted in three different foreign currencies:
- Canadian dollar (CAD): A very stable
currency
- Mexican Peso (MXP): A fluctuating
currency
- Hong Kong dollar (HKD): An infrequently
used currency
You enter two lines with accounts and amounts for
each foreign currency transaction. Based on your company procedures,
you select the appropriate rate type to populate the rate for
Corporate and
Spot rate types from your daily rates table. You manually enter the current
rate for the
User rate type.
| Currency Selected |
Rate Type Selected |
Reason |
|---|
| CAD |
Corporate |
Entered a periodic type of transaction. Your company
has established a daily rate to use for the entire month across divisions
for all transactions in CAD. CAD is a stable currency that only fluctuations
slightly over the month. |
| MXP |
Spot |
Entered a periodic type of transaction. Your company
enters daily rates each day for MXP because this currency is unstable
and fluctuates. |
| HKD |
User |
Entered a one time transaction. Your company does
not maintain daily rates in HKD. |
Note
Your company does not currently use the
Fixed rate type. From January 1, 1999, the
conversion rate of the French franc (FRF) against the euro currency
(EUR) was set at a fixed rate of 1 EUR to 6.55957 FRF. Your French
operations were started in 2007, so you maintain all your French business
records in the EUR.
