Opening Balance Initialization for New Reporting Currencies and Secondary Ledgers

Generate journals to initialize the opening balances for a new reporting currency or secondary ledger created for a primary ledger or secondary ledger already in operation. For example, an organization may need to add a new reporting currency or secondary ledger to an existing primary ledger when it merges or acquires a new business, undergoes a change in its fiscal year, expands to new countries of operation, or when a country where it operates introduces a new currency. This feature automatically generates journals based on the primary ledger’s account balances to record the opening balances for actual, average and encumbrance balances for the first accounting period of the new reporting currency or secondary ledger. The reporting currency or secondary ledger can be journal-level or subledger-level. This feature also applies to journal-level reporting currency ledgers associated with secondary ledgers.

Steps for balance initialization:

1. Enable balance initialization for the target ledger (secondary ledger or reporting currency) by selecting the pre-populated balance initialization period during the setup of the new secondary ledger or reporting currency. 

   Select the pre-populated Balance Initialization Period along with the Conversion Date and Conversion Rate Type for determining the rates to initialize the balances from the source ledger to the target ledger.                                                                                                        

2. Ensure that the user has write access to the target ledger (secondary ledger or reporting currency). Also, ensure that the accounting period prior to the initialization period is in an open status in the target ledger.

3. Initialize balances by running the Create Opening Balance Journals in Reporting Currency or Secondary Ledger process.
   • Specify the source and target ledger.
   • Optionally enable the Create Journal Batches by Primary Balancing Segment Values check box.
   • Also, optionally specify the account filter to restrict the range of accounts for balance initialization.

4. Once the process is successfully complete, you can review the generated journals from the Manage Journals page and post them to initialize the balances in the target ledger.

Business benefit:

• Reduces the need to manually create journals to record the initial balances for a new reporting currency or secondary ledger.

Steps to Enable

You don't need to do anything to enable this feature.

Tips And Considerations

Special considerations may apply if you have Lease Accounting, Fixed Assets, or Cost Accounting subledgers, or if Budgetary Control is enabled. Refer to the Implementing Enterprise Structures for General Ledger guide for details.

Key Resources

• Refer to the Ledgers chapter in the Implementing Enterprise Structures and General Ledger guide on the Oracle Help Center.

Access Requirements

To submit the Create Opening Balance Journals in Reporting Currency or Secondary Ledger process, you need the existing privilege Run Create Opening Balance Journals in Reporting Currency Program (GL_RUN_CREATE_OPENING_BALANCE_JOURNALS_IN_REPORTING_CURRENCY_PROGRAM_PRIV).