Accounting for Foreign Currency Receipts in Functional Currency Bank Accounts

Our functional currency is USD and we have 2 bank accounts, one in USD and one in GBP.

We make some supplier payments in EUR from the USD bank account and some customers pay EUR into the USD bank account too.

We are on R12.2 and use Oracle Cash Management to reconcile the bank account.

Our expectation is that all accounting entries debiting or crediting the cash account will have an entered currency equal to the bank account currency (i.e. USD for the USD bank account and GBP for the GBP account).

For payments, when the payment is created, the cash clearing account is credited in the payment currency. When the payment is then matched to the bank statement line, the cash clearing account is debited in the payment currency and the cash account is credited in the bank account currency. The system automatically generates entered currency balancing entries and foreign exchanges gain/loss entries. This is exactly what we expected.