In This article, we will try to understand Cross-Currency Payments enhancements done by Oracle in Oracle Fusion Payables.

What is a cross-currency payment?

A cross-currency payment is a payment that can pay invoices in any currency, irrespective of the currency on the invoice. For example, we can make a payment in Canadian Dollars for invoices created in US Dollars.  In today’s global business environment customer transactions go across several countries. More and more customers are looking for the business opportunities across countries. For customers to operate globally they need to be more agile, streamline their processes and look for the opportunities to improve operational efficiencies. Cross-currency payments that is payments made in a currency different from the invoice currency is one of the common payment scenarios for the customers doing business across countries. For customers especially in Europe, Asia and Latin America cross-currency payments is a very common practice. Cross-currency payments address these challenges faced by the customers and helps them effectively manage their cross-border transactions.

Cross-Currency Payments Enhancements Overview

1. Cross Currency Payments helps to create invoices with payment currency different from invoice currency.
2. Create Cross-Currency Payments by selecting invoices with invoice currency different from payment currency.
3. Relieve liability in invoice currency and credit cash in payment currency. 

Now invoices can be created with payment currency different from the invoice currency. Payment Currency field has been added to the invoices pages to support this enhancement; this field is shown in the page in ‘Show More’ mode. During invoice creation once supplier now invoices can be created with a payment currency different from the invoice currency. The Payment Currency field has been added to the invoices pages to support this enhancement, this field is shown on the Create Invoice page in the Show More mode. During invoice creation, once the supplier information is entered, the payment currency field will be defaulted based on your setup. Users can review it and they can also change the defaulted value before saving the invoice.

The cross-currency payment feature is supported for prepayment type invoices also. A prepayment type invoice can also be created as a cross-currency invoice that is, the invoice currency is different from the payment currency. The prepayment application is feature is enhanced to support cross-currency transactions. You can apply the prepayment to an invoice provided the invoice currency of the invoice and the invoice currency of the prepayment are one and the same.

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