11i valuation of foreign currency expenses

Question

Hi everyone,
The Polish Legal requirement of valuation of foreign currency expenses is to value of these expenses and exchange rate differences at currency cost layers (by historical rates), not at current exchange rate!
It works exactly the same as material transaction costing, that is foreign currency expeses are valued:
1) at FIFO (First in, First out),
2) at LIFO (Last in, First out),
3) at Average (average value).
Each company have to choose an method of valuation for his foreign currency expenses.
Example:
1) Foreign currency is USD, functional currency is PLN
2) current balance of USD account = 1,000USD, PLN account = 2,338.00PLN
where:
- 600USD x 2.35PLN/USD(ex rate) = 1410PLN
- 400USD x 2.32PLN/USD = 928PLN
2) The company applies FIFO costing for valuation his foreign currency expenses.
So, for example, 800USD payment has to be valued as following:
800USD = 600USD x 2.35PLN/USD + 200USD x 2.32PLN/USD
So, question:
Do You know any functionality in 11i in GL, AR, AP or CE module that allows us to value the foreign currency expenses like above?
Maybe, do You have any experience with it?
I will be grateful for any solutions.
Thanks a lot.

Answer 1

Hi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain.