Multi-Currency

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First Release Version: 12.0

Introduction Multi-Currency

Oracle General Ledger provides full multi–currency functionality in accordance with the United States Statement of Financial Accounting Standards 52 (SFAS #52) and International Accounting Standards 21 (IAS 21) requirements.

General Ledger can perform two types of translations stipulated in SFAS #52 and IAS 21:

1. Translation or Equity Translation Method
2. Remeasurement or Temporal Method Translation

There are three processes addressing multi-currency requirements:

1. Conversion: transactions that are immediately converted at the time of entry to the primary ledger's currency.
2. Revaluation: adjusts asset or liability accounts that may be understated or overstated due to a fluctuation in the exchange rate between the time the transaction was entered and the time revaluation takes place.
3. Translation: restates a ledger or balance for a company from the ledger currency to another currency. The cumulative translation adjustment is recorded as equity.

R12i Multi-Currency New Features

R12i New Features

Enhanced Reporting Currency Functionality - Multiple Reporting Currency’s functionality is enhanced to support all journal sources. Reporting sets of books are now reporting currencies. Cross-Ledger and Foreign Currency Allocations - Allocation of financial data can be performed from one or more ledgers to a different target ledger. Simultaneous Currency Translation of Multiple Ledgers - The translation program runs for multiple ledgers.

Steps to Setting Up Multi-Currency Accounting in Oracle General Ledger

1.	Define the conversion rate types
2.	Define and enable the currencies
3.	Assign a ledger currency to a ledger
4.	Define a Cumulative Translation Adjustment account
5.	Set the account type of your Cumulative Translation Adjustment account to Owner's Equity, Revenue or Expense
6.	Define an account to record revalued unrealized gains and losses
7.	Enter the daily rates
8.	Assign the rate types for the ledger period-average and period-end rates for running foreign currency revaluation or translation
9.	Enter historical rates or amounts to translate selected balances
10.	Enable secondary segment tracking for the ledger to produce more detail for retained earnings, unrealized gain and loss, and cumulative translation adjustment accounts

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• Related: General Ledger, Accounts Payable, Subledger Accounting

This Topic Is Referenced By These Topics:
Related Links: AccountingSetup, AccountsPayable, AuditAbility, DataSecurity, ExpenseReportsandCreditCards, FederalFinancials, FinancialImplementationGuide, GeneralLedger, GeneralLedgerImplementationGuide, GLFinancialReporting, GlobalIntercompany, GLOnlineInquiries, InternalControl, JournalEntry, MultiOrganization, OtherMinorGLFeatures, OtherPayableTopics, PayableHolds, PayableInvoices, PayableSuppliers, PublicSectorFinancials, PublishDocControlReport

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_ Collaborating Authors and Reviewers: BillDaley - 20 Mar 2007