Exchange Rate Variance line showing wrong Account

Hi,
Our company is using Oracle EBS R12.1.3. When our Finance users do foreign currency transactions in Payables and match an invoice to the PO then, on the invoice distribution lines, there are two lines (one with the Line type "ITEM" and the other one is
"Exchange Rate Variance"). The ITEM line is Ok but the Exhange Rate Variance Line is showing the same Expense Account as on ITEM line (i.e., hitting wrong account). We have checked the setups in Payable Options. The Account that is defined as PO Rate Variance Gain / Loss is different from the account that is being hit on the Invoice Distribution lines. Why is that so?
Our Finance users are not satisfied with this. They're saying that Exchange Rate variance is not charging to the right account.
Please let me know which setup option am I missing.
Thanks and Regards

Hi Nehmat,
this is an intended behaviour ...
Your purchase order is in Foreign Currency ..
Your Invoice matched to Purchase order is in Foreign Currency ...
Difference between the PO and INV exchange rate has caused Exchange rate variance ..
The entered currency in the above case is Foreign currency therefore entered value for ERV line will be zero ... whereas the accounted line would have the computation for ERV done in functional currency....hence ERV line is acceptable for this case.
Regards,
Ivruksha

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We are having a problemwith an invoice in payables module. It is crediting the exchange rate variance account in invoice accounting but is not selecting the right gl code due to which we are not able to generate accounting for this invoice. Can anybody tell me where do we define Exchange Rate Variance account?
Note: If your answer is PO Price Variance account in Financial Options then we have already checked it and it has the right gl code so there definitely is some other place where the aforementioned code is defined.
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Hi Nehmat,
this is an intended behaviour ...
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Exchange Rate Variance line showing wrong Account

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