HasanBhai,

Please keep in mind FASB w.r.t accounting for Foreign Currency transactions.

Could you please give an example of a business case where there is a need for accounting for Exchange gain and loss only at the time of Clearing and not when payment is issued?

If both the Boxes are not checked in AP Accounting Options will it not be a violation of the International Accounting Standards?
Appreciate your response.
Sunny

The short answer to your question is, if that is violating the standard that the company follows, then do not check the box. Usually one would either check "account gain/loss at payment time" or both "account gain/loss at payment time" and "account gain/loss at clearance time". I would not worry too much about why Oracle would let us unselect first option while the second option is selected. The burden is on the implementation team not on Oracle developers.

Dear Hasanbhai,

I have researched the functionality. It is in compliance with the FASB. Because You need to set both Exchange Gain and Loss Plus account when Payment is issued together and it does not allow to set the bottom part when the checkbox above is not ticked.
Thanks
slr

Good to know that Oracle will not allow to violate FASB even if you want to.
I keep my focus on "How should the system be configured" rather than "Will Oracle let me violate regulations". You will find out there are many places where there is no validation and the burden to do the proper setup is on the implementer.