Using MRC with General Ledger
To use MRC with General Ledger, you must perform certain setup steps, described in the separate MRC Guide. These steps include initializing your reporting set of books balances (see below).
See: Multiple Reporting Currencies
Initializing Reporting Set of Book's Balances
If you choose to use MRC for reporting in multiple currencies, you must initialize the beginning balances in your reporting sets of books. You can do this in one of several ways:
Translation and Consolidation: Use General Ledger's Translation and Consolidation features to generate your reporting set of book's beginning account balances from your primary set of books balances.
- Translate balances in your primary set of books from your functional currency to your reporting currency.
- Use General Ledger's Consolidation feature to consolidate the translated balances from your primary set of books to your reporting set of books, into a period preceding the first period for which you plan to use your reporting set of books.
You must repeat these steps for each reporting set of books.
Suggestion: We recommend that you use Translation and Consolidation to initialize your reporting set of books.
Manual Journals: In your reporting set of books, use the Enter Journals window to manually enter journals with your beginning account balance amounts for the period preceding the first period for which you plan to use your reporting set of books. Post your journals.
Journal Import: Use Journal Import to import journals with your beginning account balance amounts for the period preceding the first period for which you plan to use your reporting set of books. Post your journals.
General Ledger Activities and Processes
Once you have set up MRC, many of the standard General Ledger activities will require new steps or additional information. These include:
Defining Daily Rates -- Daily rates are used to convert your primary set of books' journals to the appropriate reporting currencies. If you do not currently maintain daily rates, you must do so if you want to use MRC. Your daily rates must be defined before you post journals in your primary set of books. See: Entering Daily Rates
Posting Journals -- General Ledger automatically generates unposted converted journal batches in your reporting sets of books when you post the original journals in your primary set of books. These unposted journal batches must be posted to update the related account balances. See: Posting Journal Batches
Reversing Journals -- When you reverse a journal entry in your primary set of books, General Ledger will also reverse the corresponding entry in your reporting sets of books. See: Defining Reverse Journal Entries
Importing Journals -- When you import journals from non-Oracle feeder systems, General Ledger creates converted journals in your reporting sets of books when you post the imported journal batch in your primary set of books. See: Importing Journals
Subledger Posting to General Ledger -- If you use Oracle feeder systems, you must run the subledger application's post to General Ledger process in both your primary and reporting sets of books. See the various Oracle subledger user's guides for more information. Also see:
Entering Budgets -- Budget amounts are not converted automatically to your reporting currencies. If you need your budget amounts in a reporting set of books, you must enter them separately. See: Overview of Budgeting
Entering Encumbrances -- General Ledger automatically creates converted encumbrance entries in your reporting sets of books when you create the associated encumbrance entry in your primary set of books. See: Entering Encumbrances
Additional Information: You can use Translation to intialize the beginning balances in your reporting set of books. See: Initializing Reporting Set of Books Balances
Revaluation -- You must run revaluation in your primary set of books and in each of your reporting sets of books. See: Revaluing Balances
Consolidation -- You may be able to consolidate directly from a subsidiary's reporting set of books to your parent set of books. See: Preparing Subsidiary Data
Additional Information: You can use Consolidation to intialize the beginning balances in your reporting set of books. See: Initializing Reporting Set of Books Balances
Online Inquiries, Reports, and FSG -- You can use all of these standard General Ledger features in your reporting sets of books.
Completing MRC-Related Tasks in the Correct Order
There are multiple dependencies between a reporting set of books and the primary set of books to which it is assigned. Therefore, it is important that you complete your period-begin tasks, day-to-day accounting tasks, and period-end tasks in the correct order. Some guidelines are presented below.
Period-Begin Tasks
Open the accounting period in both your primary and reporting sets of books before you create journals for the period. MRC will only generate converted journals in your reporting set of books if the period is open or future-enterable.
Day-to-Day Tasks
Enter the daily exchange rates to convert your journals to each of your reporting currencies.
Period-End Tasks
Complete entering all regular and adjusting journals for the period in your primary set of books.
If you use Oracle feeder systems, such as Receivables and Payables, you must run the subledger application's post to General Ledger process in both your primary and reporting sets of books.
Note: When you post a journal batch that was posted from an Oracle subledger system to your primary set of books, General Ledger does not create a converted journal in the reporting sets of books as it does for other journals.
Post all unposted journals in your primary set of books.
Post all unposted journals in your reporting sets of books.
Run Revaluation in both your primary and reporting sets of books. Post the resulting revaluation batches in each set of books.
As needed, translate balances in both your primary and reporting sets of books.
Generate needed reports from both your primary and reporting sets of books.
Close your accounting period in both your primary and reporting sets of books.
See Also
Multiple Reporting Currencies Overview
Understanding MRC
Multiple Reporting Currencies
Overview of Financial Statement Generator
Overview of Multi-Currency Accounting