How AutoRate Program work in AP

Hello everyone

I am having a problem with AutoRate. I don't know how it works in AP.

I have read Oracle User Guide

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AutoRate uses exchange rate information in the GL Daily Rates table to enter exchange rates for any foreign currency invoices or payments that have no exchange rates. AutoRate cannot update exchange rates unless you have first defined exchange rates in the GL Daily Rates table that match the invoice or payment currency, rate date, and rate type.

If a foreign currency invoice has no exchange rate, Approval applies a No Rate hold to the invoice, which prevents payment and posting of the invoice. After AutoRate enters an exchange rate for the invoice, the next time you run Approval, the system will remove the No Rate hold. Payables will not post foreign currency payments that have no exchange rates. After AutoRate enters an exchange rate for a payment, AutoRate creates payment distributions. The payment distributions include credits to the Asset Accounts as well as any discount distributions.