About Configuring Currencies

Currency conversions are required because your business might have transactions involving multiple currencies.

To create a meaningful report, you have to use a common currency. Oracle Business Analytics Warehouse stores amounts in these currencies:

• Document currency. The document currency is the currency of the transaction. For example, if you purchase a chair from a supplier in Mexico, then the document currency is probably the Mexican peso. Or, if you made a business trip to the United Kingdom and filed an expense report for meal expenses in the UK, then the document currency of the expense report will most likely be in GBP.

• Local currency. The local currency is the base currency of your ledger, or the currency in which your accounting entries are recorded in.

• Global currencies. Oracle BI Applications provides three global currencies, which are the common currencies used by Oracle Business Analytics Warehouse. For example, if your organization is a multinational enterprise that has its headquarters in the United States, you probably want to choose US dollars (USD) as one of the three global currencies.

  The global currency is useful when creating enterprise-wide analyses. For example, a user might want to view enterprise-wide data in other currencies. For every monetary amount extracted from the source, the load mapping loads the document and local amounts into the target table. It also loads the exchange rates required to convert the document amount into each of the three global currencies. For fact tables, there are two amount columns covering the Local currency amount and the Document currency amount. In addition, there are three columns covering the Global currency (for example, global _amount1) and their corresponding exchange rate columns.

  In most cases, the source system provides the document currency amount, which is the default setting for handling currency. If the source system provides only the document currency amount, then the source adapter performs lookups to identify the local currency codes based on the source system to which the appropriate currencies are assigned. After the lookups occur, the extract mapping provides the load mapping with the document currency amount and the document and local currency codes. The load mapping will then use the provided local currency codes and perform currency conversion to derive the local amount. The load mapping will also fetch the global currencies setup and look up the corresponding exchange rates to each of the three global currencies.

  To specify global currencies, use the parameters GLOBAL1_CURR_CODE, GLOBAL2_CURR_CODE, and GLOBAL3_CURR_CODE.