Working in foreign currency exchange is fraught with challenges. Global currency rates are constantly in flux, and managing these rates is a crucial, yet time-intensive concern for businesses using Oracle ERP Cloud. How can you cut down on the time it takes to complete important tasks without cutting corners and while ensuring accuracy?
Here, we discuss how to streamline currency management for Oracle ERP Cloud users.
Manual Currency Management Challenges
Oracle ERP Cloud needs currency exchange rates to convert foreign currency transactions to the base currency of each organization. Examples include supplier invoices and payments, customer invoices and receipts, purchase orders, and sales orders.
In addition, period-end accounting processes such as revaluation and translation require accurate period-end and period-average rates. Although Oracle provides a screen and spreadsheet loader to enter these rates manually as part of its standard product, this can become time consuming, even if you only need a relatively small number of currencies.
Manual retrieval, entry, and reconciliation of FX rates across different financial systems runs the risk of human error which leads to inconsistencies in financial reporting and potential compliance issues. In a recent report by insightsoftware and Hanover Research, manual processes were listed as one of Oracle-based finance leaders’ biggest challenges.
As with any manual process, mistakes can occur which can have a major impact on your business. When it comes to currency management, those include:
- If rates are not entered on a particular day, then foreign currency transactions cannot be entered for that day.
- If a rate is entered incorrectly, the impact may not be noticed for weeks. For example, if a rate is entered the ‘wrong way round,’ the impact on your GL balances at month end will be significant.
Keep Your ERP FX Rates Accurate and Up-to-Date
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It’s no secret that technology can help reduce the time cost of manual tasks. But because currency management is a complex process that requires you to oversee a variety of moving parts, it’s challenging to know where to start. When seeking out a currency management solution, look for one that empowers you to:
Have complete control over the frequency during which rates load. Most choose daily, but weekly, monthly, or annually are musts based on your organization’s unique accounting processes. Also look for a tool that also gives you control over the time of day during which rates run.
Configure which currencies you want to query from each source. The right solution will allow you to flag base currencies that can restrict which cross-rates are generated.
Get currency rates from or to a single base currency, then triangulate to create all other currency pairs (cross-rates). A key element to look out for is a tool that enables using the ECB Euro rates to create rates between all currencies, for example. This option can be used with market rate providers, or you can query all currency pair combinations directly from those services.
Load into Oracle ERP Cloud. Search for a solution that enables you to send rates to Oracle ERP Cloud and Oracle Sales Cloud.
With so many features to look for, does this mean you have to find multiple software tools to successfully streamline your existing process? Using multiple software tools is a common practice. According to insightsoftware and Hanover Research, 95% of Oracle-driven finance teams use multiple software tools from different software vendors for financial process automation. This causes challenges with data consistency, accuracy, and efficiency.
The good news is you don’t have to add complexity to your currency management processes by adopting more than one technology solution. FXLoader from insightsoftware offers a fully automated, secure, and reliable solution to load accurate, up-to-date exchange rates into Oracle ERP Cloud. By eliminating the risks of manual processes, this solution empowers you to save time while increasing accuracy and smoothing out overall operations.
FXLoader queries exchange rates from the leading rates service providers OANDA, Xignite, Refinitiv, XE, Bloomberg, Open Exchange Rates plus a number of central banks. With FXLoader, you can:
- Automate the entire FX rate management process
- Eliminate manual data entry errors
- Smoothly meet regulatory requirements and reduce compliance risks
- Enhance FX data accuracy and consistency
- Easily load rates into Oracle ERP Cloud
- Free up finance and treasury resources
- Keep your data secure with two-factor authentication
Ready to learn more? Check out our whitepaper for more information on how FXLoader integrates with Oracle ERP Cloud.
Clik here to view.
FXLoader Cloud Service Oracle ERP Cloud Integration
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