CURRENT BEHAVIOUR:

Foreign currency expense reimbursements are currently recognised at the amount incurred in the Accounting Currency as at the transaction date. Therefore, the amount owing in the Payment Proposal is locked in for that exchange rate.

However, foreign currency corporate credit card expenses are recognised at the amount incurred in the Transaction Currency. Therefore, the amount owing in the Payment Proposal is subject to fluctuations in the exchange rate between the transaction date and the payment date.

PROBLEM: For corporate credit cards, banks will apply the exchange rate on the transaction date and charge the company that amount in the company's local currency (usually Account Currency). While the payment will be made at a later date, the amount owed in the company's local currency (and the amount actually paid) will not change. The current design of Payment Proposals for corporate credit card expenses does not allow for this scenario. Workarounds or customisations are currently required to accommodate this scenario. Without customisations or a workaround, issues can occur in areas such as bank reconciliation, expense / liability valuation, and vendor subledger settlement.

IDEA: A toggle in the Expense Management module (or similar configuration) that would allow us to choose which of the above behaviours we would like to implement for each expense type.