R12 Multi-currency and International Payment Options in Supplier Bank Account Setup

This note provides information of multi-currency and international payment options in supplier
bank account setup.

A supplier can be paid in multiple currencies in R12. The currency field on supplier bank account
setup is a non-mandatory field. If currency is provided on the supplier bank account, payment
for that bank account can be created only in the currency of that supplier bank account.
However if no currency is provided on any supplier bank account, that bank account acts as a
multi-currency bank account and payment can be created in any currency for that supplier bank
account.

When invoice is created, supplier bank account is defaulted from supplier bank account
assignment setup based on priorities. While defaulting the bank account on invoice, system will
default only that bank account which has either currency matching to the invoice or the bank
account is a multi-currency bank account i.e. currency is null. If user wants to select a different
bank account, the LOV results of remit-to bank account field will display only those bank
accounts which have currency matching to the invoice or currency is null. Similar behavior of
remit-to bank account is present in Payments workbench form and Review Proposed Payments
page.

Similar to multi-currency option as explained above, supplier bank account setup also provides
option to make international payments. There is a checkbox Allow International Payment
provided on supplier bank account creation page. To make international payments, this
checkbox must be enabled. A payment is considered as international payment when country of
supplier bank account and bank-branch country of internal (disbursement) bank account is not
same. For example, supplier bank account country is Canada and internal bank-branch country
is USA. In such case, payment creation will be allowed only if option Allow International
Payment is enabled. If this option is not enabled, payment creation will be rejected during build
payment stage.

However in actual use, the external bank account having Allow International Payment flag
enabled is allowing both international payments as well as multi-currency payments. For
example, if any supplier bank account has Allow International Payment checked and its
currency is USD, that bank account can be selected to make payment even for EUR invoices.
This is rectified via patch 10295308.