Oracle E-Business Suite Concepts Release 12.1 Part Number E12841-04 | Contents | Previous | Next |
The Reporting Currencies feature allows you to report and maintain accounting records in more than one functional currency. You do this by assigning one or more reporting currencies to your primary ledger or secondary ledger using General Ledger’s Accounting Setup Manager. A secondary ledger is an optional, additional ledger that is associated with the primary ledger for an accounting setup. Secondary ledgers can be used to represent the primary ledger's accounting data in another accounting representation that differs in one or more of the following from the primary ledger:
Chart of accounts
Accounting calendar/period type combination
Currency
Subledger accounting method
Ledger processing options, such as Suspense Posting
Unlike secondary ledgers, reporting currencies must share the same chart of accounts, accounting calendar/period type combination, subledger accounting method, and ledger processing options as their source ledger.
As a general rule, always use reporting currencies instead of secondary ledgers if you only need to maintain an accounting representation that differs in currency alone. You can assign reporting currencies to both primary and secondary ledgers. Reporting currencies are maintained at one of the following currency conversion levels:
Subledger: Maintains a currency representation of your subledger journals, General Ledger journal entries, and balances. When using the subledger level reporting currency, you must define subledger accounting rules using Subledger Accounting. These rules provide instructions on how to convert subledger data entered into the source ledger to one or more subledger level reporting currencies. You must also define journal conversion rules that General Ledger Posting uses to automatically convert specific journals, such as manual journal entries, to one or more subledger level reporting currencies.
Note: Subledger level reporting currencies can only be assigned to primary ledgers, not secondary ledgers.
Journal: Maintains General Ledger journal entries and balances in another currency representation. Journal level reporting currencies are maintained using the General Ledger Posting Program. Every time a journal is posted in the source ledger, such as the primary ledger or secondary ledger, the journal is automatically converted to the respective journal level reporting currency based on the journal conversion rules defined.
Balance: Maintains balances in another currency. The General Ledger Translation program is used to convert balances from the source ledger to the balance level reporting currency. When you run Translation in your primary or secondary ledger and specify a target currency, the translated balances are reflected in the balance level reporting currency.
Note: If a balance level reporting currency is not assigned to the ledgers in the accounting setup, a balance level reporting currency is automatically created the first time Translation is run. The name of the balance-level reporting currency is the same as its source ledger, except that its currency code, such as GBP, is appended to its name.
The subledger level and journal level reporting currencies act similarly to ledgers. You must open and close the periods for these reporting currencies before you can enter transaction and journal entries. You can also enable journal approval for these reporting currencies if planning to enter manual journal entries directly to these reporting currencies.
The following terms are fundamental to using Reporting Currencies:
Note: For further details about reporting currencies, see Journal or Subledger Level Reporting Currencies in Oracle General Ledger User’s Guide and Reporting Currencies in Oracle Financials Implementation Guide. For further details about secondary ledgers, see Secondary Ledgers in Oracle Financials Implementation Guide.
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