How Balances for Reporting Currencies Are Calculated

Reporting currency balances, set at the journal or subledger level, are updated when Oracle General Ledger journals are posted and converted to your reporting currencies.

This process includes:

• General Ledger manual journals, periodic journals, and allocations.

• At the subledger level, journals from Oracle Subledger Accounting.

• Other journals imported from sources other than your Oracle Fusion subledgers.

When you post a journal in a ledger that has one or more reporting currencies defined, the posting process:

• Creates journals converted to each of your reporting currencies.

• Includes them in the same batch as the original journal with a status of Posted.

Settings That Affect Reporting Currency Balances

Reporting currencies share a majority of the ledger options with their source ledger. For example, the reporting currency uses the same suspense account and retained earnings accounts as its source ledger. However, there are certain options that must be set specifically for reporting currencies, such as the currency conversion level. The currency conversion levels are Balance, Journal, and Subledger.

Note:

Secondary ledgers can't use subledger level reporting currencies.

Multiple dependencies exist between a reporting currency and its source ledger. Therefore, complete your period opening tasks, daily journal or subledger level reporting currencies accounting tasks, and period closing tasks in the correct order. The following table describes some of the tasks for each task type.

Type	Tasks
Period Opening	Open the accounting period in both your ledger and reporting currencies before you create or import journals for the period. Converted journals are only generated in your reporting currency if the period is open or future enterable.
Daily	Enter daily conversion rates to convert journals to each of the reporting currencies.
Period Closing	Finish entering all regular and adjusting journals for the period in your ledger. Post all unposted journals in your ledger if not already done in the previous step. Post all unposted journals in your reporting currencies if not already done in the previous step. Run revaluation in both your ledger and reporting currencies. Post the resulting revaluation batches in each ledger. As needed, translate balances in your ledger. Generate needed reports from both your ledger and reporting currencies. Close your accounting period in both your ledger and reporting currencies.

How Reporting Currencies Are Calculated

If you use reporting currencies at the journal or subledger level, journals are posted in your reporting currency when you:

• Create accounting.

• Post journal entries.

• Translate balances.

General Ledger and Subledger Accounting automatically generate journals in your reporting currencies where the entered currency amounts are converted to the reporting currency amounts. Other factors used in the calculation of reporting currency balances are listed:

• Manual Journals: Enter a manual journal batch in your reporting currency at the journal or subledger level by using the Create Journals page. Select the journal or subledger level reporting currency from the ledger's list of values. Continue in the same manner as entering any other manual journal.

• Conversion Rounding: Use the reporting currency functionality to round converted and accounted amounts using the same rounding rules used throughout your Oracle Fusion Cloud Applications. The reporting currency functionality considers several factors that are a part of the currencies predefined in your applications, including:

  • Currency Precision: Number of digits after the decimal point used in currency transactions.

  • Minimum Accountable Unit: Smallest denomination used in the currency. This might not correspond to the precision.

• Converted Journals: Generate and post automatically journals in your reporting currencies when you post the original journals in the source ledger for the following types of journals:

  • Manual journals

  • Periodic and allocation journals

  • Unposted journals from non-Oracle subledger applications

  • Unposted journals from any Oracle subledger that doesn't support reporting currency transfer and import

  • Optionally, revaluation journals

• Unconverted Journals: Rely on the subledger accounting functionality to convert and transfer Oracle subledger journals, for both the original journal and the reporting currency journal, to the General Ledger for import and posting. The reporting currency conversion for these journals isn't performed by the General Ledger.

• Approving Journals: Use the journal approval feature to process reporting currency journals through your organization's approval hierarchy. You can enable journal approval functionality separately in your source ledger and reporting currencies.

• Document Numbers: Accept the default document numbers assigned by the General Ledger application to your journal when you enter a journal in your ledger. The converted journal in the reporting currency is assigned the same document number. However, if you enter a journal in the reporting currency, the document number assigned to the journal is determined by the reporting currency.

• Sequential Numbering: Enable sequential numbering to maintain the same numbering in your reporting currency and source ledger for journals, other than those journals for Oracle subledgers. Don't create separate sequences for your reporting currencies. If you do, the sequence defined for the reporting currencies is used. The sequences can cause the document numbers not to be synchronized between the ledger and reporting currencies.

  Note:

  General Ledger enters a document number automatically when you save your journal if:

  • The Sequential Numbering profile option is set to Always Used or Partially Used.

  • Automatic document numbering sequence is defined.

  If you use manual numbering, you can enter a unique document number.

• Revaluation: Run periodically revaluation in your ledger and reporting currencies as necessary to satisfy the accounting regulations of the country in which your organization operates.

• Account Inquiries: Perform inquires in the reporting currency. You can:

  • Drill down to the journal detail for the reporting currency balance.

  • Drill down to see the source ledger currency journal amounts from any automatically converted journal that was created when the original journal posted.

Note:

Be careful when changing amounts in a reporting currency, since the changes aren't reflected in your source ledger. Making journal entry changes to a reporting currency makes it more difficult to reconcile your reporting currency to your source ledger. In general, enter or change your journals in your source ledger, and then allow posting to update the reporting currency.

Note:

If you use journal or subledger level reporting currencies, statistical journals are generated for your reporting currencies, but the journals aren't converted.