Hello Hasan,

When to enable "Rounding Differences Account", is it similar to Exchange Rate Gain/loss account. Is it automatically record the different between balances?

Can you give me the brief information about it?

Thanks, Raghu.k

When currency conversions takes place rounding differences could spring up due to different precision.
If you do not specify a rounding difference account then Oracle will place the rounding difference in the journal line that has the highest amount.
You must provide rounding account if you are using sunledgers. Subledger accounting program will result into errors if rounding differences are encountered while generating accounting and if no rounding account is specified.
In comparison Exchange Rate Gain account comes into play when a gain or loss is recorded in open positions due to fluctuations in the exchange rate. For example lets say you purchased something in EUR on day 0. On day 10 you made the payments. Lets say the EUR is more expensive by day 10 as compare to day 0. Therefore, the payment transaction will record an exchange rate loss using Exchange Rate Gain/Loss account.