30 Apr Netsuite to Oracle ERP Cloud
We have helped a number of new clients with the FX rate portion of their migration from Netsuite to Oracle ERP Cloud.
Often, the motivation for this ERP move is to take advantage of the enhanced multi-national, multi-organization functionality in Oracle ERP Cloud.
This is a full system migration of course, there is no automated ‘upgrade path’ as the two ERPs are very different. As our expertise is in multi-currency, we wanted to share our experience in this part of the migration, specifically how to get rates into Oracle ERP Cloud vs. the way it used to work in Netsuite.
Currency Exchange Rates in Netsuite
Netsuite has two sources of rates available to use as ‘default’ in the application, made available via agreements Netsuite has with the providers. This seems like an ideal scenario as clients don’t need to worry about sourcing and loading them. However, there are complexities with both sources:
- Xignite provide market rates for all tradeable currencies, updated every hour. Netsuite uses the ‘Mid’ of the Bid/Ask spread with a particular Fix Time based on UTC (universal time).
- Refinitiv (previously known as Thomson Reuters) publish a vast array of types of FX rates, such as End of Day, 12 Noon Fix and various other sources such as central banks. Our understanding is that only market rates are available.
We have seen complications with these rates when trying to replicate the same setup in Oracle ERP Cloud, including rates being updated more than once per day, in different regions.
Clients can also choose to load rates from other sources or providers, we know OANDA have an integration, for example.
Options for FX Rates in Oracle ERP Cloud
Oracle ERP Cloud does not have a built-in source of rates. The main reason is that clients using the tier-1 ERPs have more sophisticated requirements for their rates, often different from each other and dependent on the jurisdictions they operate in. This is the same reason most other ‘large’ ERPs such as SAP, Workday, JD Edwards, Peoplesoft do not have a default set of rates.
FXLoader can configure rates exactly as clients need them, for areas including:
- Bid, Ask or Mid market rates
- Addition of Central Bank rates, which are a statutory requirement in some countries
- Timing of rates – which cut-off to use and which date to load them as in the ERP
- Choice of sources of market rates in addition to Xignite and Refinitiv
- Triangulation and Inverse rate options, which can be important when consolidating
For our clients, it is very easy to get exactly the FX rates they need, as FXLoader was built specifically for that purpose, and continuing additions are geared around any new requirements that appear.
Of course, sometimes clients moving from Netsuite to Oracle ERP Cloud want to keep the same source as they currently use in Netsuite. This is possible, as FXLoader supports both Xignite and Refinitiv. The only challenge is figuring out which of their rates they actually used in Netsuite.
If you are making the move, we’d be happy to share the experiences of our clients who have been through the same journey recently. You can contact us at firstname.lastname@example.org or via our website.