Unable to Baseline fund at Task Level

Question

Hi All,
We have a project P1 with two tasks T1 and T2. Funding is done at Task Level so initially T1 is funded for 100 USD.
Set Of Books Currency is INR.
When T1 was funded initially the USD-INR conversion rate was 40 Rs per USD.
So the workings are:
PO:      (exchangeRate 40Rs)     100 USD ~ 4000 INR
Revenue1:      (exchangeRate 40Rs) 100 USD ~ 4000 INR
Exchange rate changes to 35 INR = 1USD
Now there is a situation where PRC: Revaluate Funding is run, and in the PO, there is a unbaselined amount of -500, because of exchange rate change.
Now it does not allow me to baseline this -500
It shows message: Total amount allocated cannot be less than amount accrued or billed.
Surprise Part:
I wanted to fund the next Task T2 for another 100 USD @ 35 ~ 3500 INR. Now the unbaselined amount becomes 3000 INR and the funding inquiry screen still does not
allow me to fund Task T2. It gives me the same message "Total amount allocated cannot be less than amount accrued or billed"
I have just given an example of one instance, but we have a huge quantum of such projects and the issue is getting added.
Is this a bug?
Regards,
SA

Answer 1

Hi
The basic reasoning for funding revaluation may be described as follows.
Billing is done over time in the funding currency (customer PO currency), however, the billing amounts are converted to functional currency as they are generated. Each invoice may be converted to functional currency by a different exchange rate. The billing amounts should be limited by the total customer PO amount in the funding currency. The amount in functional currency should not be limited, since this is a dependent result.
Revenue is taken over time in the functional currency.
The target is to get at project end the following - the total billing amount in functional currency will equal the total revenue amount if functional currency. That way the UBR and UER will balance to zero. The revenue amounts are generated in functional currency, and those should be limited by the resulting total functional currency amount of the billing.
Each time you revaluate the fund the system calculates the total billed and paid amount in functional currency, add to that the due billed amount (unpaid) revaluated as of the revaluation date, and then add the backlog, which is the remaining unbilled fund revaluated as of the revaluation date. The summary of those three components represents the as of date value of all potential amount to be billed in the functional currency. The process ends up by adding a revaluation fund line that brings the total amount of funding in the functional currency to equal the calculated revaluated total amount.
The above described logic was the reason for Oracle to develop the revaluation process, the way it was built.
I'm not sure what is the reason your company want to revaluate the fund in the other way.
Could you please explain the accounting reason.
Oracle do offer a revaluation factor client extension which you may want to look at. However, this extension is used by the revaluation process to alter the factor for revaluating the remaining backlog (unbilled amount). It is not affecting the entire formula calculated with the billing components. I"ll be able to suggest a workaround using that extension, if I'll understand the business requirement.
Dina