Defining Currencies
Use the Currencies window to define non-ISO (International Standards Organization) currencies, and to enable/disable currencies. Oracle Applications has predefined all currencies specified in ISO standard #4217.
To use a currency other than U.S. Dollars (USD), you must enable the currency. U.S. Dollars (USD) is the only currency that is enabled initially.
To define a new currency:
1. Navigate to the Currencies window.
2. Enter a unique Code to represent your currency.
Note: You cannot change a currency code after you enable the currency, even if you later disable that currency.
3. Enter the Name and Description of the currency.
4. (Optional) Select the name of the Issuing Territory. Oracle Applications has predefined the names of countries (per ISO Standard #3166) that issue standard currencies.
5. Enter the Symbol for your currency.
Note: Some Oracle Applications use currency symbols when displaying amounts. Others, like General Ledger, do not.
6. Enter the Precision of the currency to designate the number of digits to the right of the decimal point used in regular currency transactions.
7. Enter the Extended Precision to designate the number of digits to the right of the decimal point used in calculations for this currency. The extended precision must be greater than or equal to the standard precision.
Note: Some Oracle Applications use the extended precision. Others, like General Ledger, do not.
8. Enter the Minimum Accountable Unit to designate the smallest denomination used in this currency. Note that this might not correspond to the precision.
9. If you are defining the national currency of an EMU member state, define your Currency Derivation options.
10. (Optional) Enter Effective Dates for your currency. You can only enter transactions denominated in this currency for dates within the range. If you don't enter a start date, the currency is valid immediately. If you don't enter an end date, the currency is valid indefinitely.
11. Enable your currency.
To enable or disable a currency:
1. Navigate to the Currencies window.
2. Query the Code or Name of the currency that you want to enable or disable.
3. Mark the Enabled check box to indicate that the currency can be used to enter transactions and record balances. Clear the check box to indicate that the currency cannot be used.
Defining European Monetary Union Relationships
Oracle Applications and General Ledger include specific features for defining the relationships between the official currency (Euro) of the European Monetary Union (EMU) and the national currencies of EMU member states. For each EMU currency, you define its Euro-to-EMU fixed conversion rate (see Notes below) and the effective starting date.
General Ledger comes with a predefined currency for the Euro, with a currency code of EUR. To use this predefined currency, you must activate it. To use a different currency code for the Euro, you must define a new Euro currency.
Notes
When defining a new EMU currency or creating the EMU relationship for an existing currency, you must enter a currency derivation factor. This is the fixed conversion rate by which you multiply one Euro to derive the equivalent EMU currency amount.
When defining a new EMU currency or creating the EMU relationship for an existing currency, you must enter an effective starting date. This is the date on which the relationship between the EMU currency and the Euro effectively starts.
You must create the EMU relationship for your existing currency before you enter period rates for any period that is the same as or which follows the period of the effective starting date. For example, if your effective starting date is 04/20/1998, do not enter period rates for April or May of 1998 until you have created the EMU relationship for your existing currency.
If you enter period rates first, you will have to delete those rates, then back out the effects of any journals that used the rates, before you create the EMU relationship. Otherwise, you can corrupt your General Ledger data.
To create an EMU relationship for an existing currency:
1. Navigate to the Currencies window.
2. Query the currency for which you want to create an EMU relationship.
3. Select EMU Derived as the Currency Derivation Type.
4. Enter the Currency Derivation Factor between the Euro and the EMU currency.
5. Enter the Currency Derivation Effective starting date.
Suggestion: We recommend that you carefully check your entered period rates before creating an EMU relationship for your existing currency. You can corrupt your General Ledger data if you have entered rates for any period that is the same as or which follows the period of the effective starting date, if you do so before you create the EMU relationship for your existing currency. See: Entering Period Rates
To define a new EMU currency:
1. Follow the steps for defining a currency.
2. While defining the currency, select EMU Derived as the Currency Derivation Type.
3. Enter the Currency Derivation Factor between the Euro and the EMU currency.
4. Enter the Currency Derivation Effective starting date.
5. Complete the steps for defining a currency.
To activate the predefined Euro currency:
1. Navigate to the Currencies window.
2. Query the currency Code EUR.
3. Select Euro Currency as the Currency Derivation Type.
4. Mark the Enabled check box to indicate that the currency can be used to enter transactions and record balances.
To define a new Euro currency:
1. Make sure the predefined Euro currency is deactivated.
3. While defining the currency, select Euro Currency as the Currency Derivation Type.
4. Complete the steps for defining a currency.
To deactivate the predefined Euro currency:
1. Navigate to the Currencies window.
2. Query the currency Code EUR.
3. Delete any entry for the Currency Derivation Type. This field should be empty.
4. Unmark the Enabled check box to indicate that the currency cannot be used to enter transactions and record balances.
See Also
Oracle Applications and the Euro
Defining Currencies
Overview of Multi-Currency Accounting
