How You Initialize Balances for New Reporting Currencies

Automatically convert historical asset transactions to initialize asset balances when adding a new subledger-level reporting currency to the primary ledger. You use either a fixed amount or enter a rate to convert each asset transaction.

For example, let's say your organization needs to add a new reporting currency because it merges or acquires a new business, and you need to have an additional currency representation for your primary ledger transactions.

You can also create a new reporting currency when your organization expands its operations to new countries or when a country where your organization operates introduces a new currency. You initialize the asset balances for your new reporting currency, which you created after the asset transactions were entered in the primary ledger. The existing asset transactions in the primary ledger are then converted to the reporting currency.

Before initializing balances, complete the following prerequisites:

1. Ensure the initialization period for the reporting currency is the period after the latest open period of the primary ledger and asset book.
   • For Example: If the current open period of the asset book is Feb 24, then Feb 24 must be the latest open period and Mar 24 should be the future enterable period in the primary ledger.
2. Initialize the balances for the reporting currency immediately upon opening a new period.
3. Don't enter any new transactions or run the Calculate Depreciation process for the new period.
4. Run the Create Accounting process for the closed period and make sure that there are no transactions that aren’t accounted for before initialization.

You must run the following processes to initialize balances in the new reporting currency for your asset book:

1. Translate Asset Transactions to Reporting Currency – Phase 1. When running the process, select your book and reporting ledger, and select 1 for the phase.
2. Load Interface File for Import. Upload the .zip file for the Translate Asset Transactions to Reporting Currency import process.
3. Translate Asset Transactions to Reporting Currency – Phase 2. When running the process, select your book and reporting ledger, and select 2 for the phase.

In the Translate Asset Transactions to Reporting Currency file-based data import template, the conversion rate is provided and the latest asset cost is calculated by multiplying it with the primary ledger asset cost. When the latest asset cost in the reporting currency is given, asset transactions are converted using the ratio of this latest cost to the primary asset book cost.

After initializing your asset balances, you can view the balances in the reporting currencies by navigating to the Asset Inquiry page and selecting the Currency drop-down list.

Guidelines for Initializing Balances

When you initialize balances in the reporting currency, keep these points in mind:

• Accounting entries aren't generated for the reporting currency conversion. You must enter the opening balances for the reporting currency in Oracle General Ledger.
• New transactions created after the initialization of balances are accounted for in the reporting currency and transferred to General Ledger.
• Balances can't be initialized for asset books with leased assets and group assets. Don't set up a new subledger level reporting currency if your asset book already has leased assets or group assets.
• You must provide either a conversion rate or reporting currency cost for all assets that exist in the asset book. If you missed any assets in the Reporting Currency Conversion Rates template, the Translate Asset Transactions to Reporting Currency process ends in error. In this case, you must run the Purge process to purge the imported data and upload the asset data again.
• Run the Purge Interface Tables process with these parameter settings:
  • Purge Process Intent: File-based data import
  • Import Process: Translate Asset Transactions to Reporting Currency
  • Load Request ID: The request ID of the latest upload