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Performing Standard General Ledger Activities

Some standard General Ledger activities require new steps or additional information when MRC is enabled. Also, certain activities must be performed in both your primary and reporting sets of books.

Opening Periods

You must open and close accounting periods in your primary set of books and in each of your reporting sets of books separately.

See: Opening and Closing Accounting Periods

Entering and Posting Journals

MRC automatically generates unposted converted journals in your reporting sets of books when you post the original journals in your primary set of books. These unposted journals must be posted to update the related account balances.

Note: When you import journals from non-Oracle feeder systems or Oracle applications that do not support MRC, General Ledger creates converted journals in your reporting sets of books when you post the imported journal batch in your primary set of books.

See: Creating Journal Batches
  Importing Journals
  Posting Journal Batches

Reversing Journals

You cannot reverse converted journals directly in your reporting sets of books. Instead, when you reverse the original journal in your primary set of books, MRC automatically reverses the corresponding entries in your reporting sets of books. The reversal process is slightly different, depending upon whether the original entry is reversed before or after being posted in your primary set of books:

Reverse after posting: When you reverse a journal in your primary set of books, MRC automatically creates a reversing journal in each of your reporting sets of books, using the same amounts as the original converted journal.

Reverse before posting: When you post the original journal in your primary set of books, MRC automatically converts it and creates two unposted journals in each reporting set of books -- one for the converted original journal and one (using the same converted amounts) for the reversing journal.

You must post reversing journals in both your primary and reporting sets of books to update your balances.

Note: If you enter a journal directly in your reporting set of books, you can only reverse it in your reporting set of books.

See: Defining Reverse Journal Entries

Approving Journals

As discussed earlier in this chapter (see: Primary versus Reporting Responsibilities), you should generally exercise caution over entering or importing new journals in a reporting set of books. As a result, you may wish to use General Ledger's Journal Approval feature to ensure that a reporting set of books' journals are processed through your organization's approval hierarchy.

You can enable Journal Approval separately in your primary and reporting sets of books. Journals are approved as noted in the table below:

Journal Approval in  
Primary SOB Reporting SOB Approval Processing
Enabled Enabled Journal entered and approved in primary SOB: Approval required based on Journal Approval settings in primary SOB. Approval status carried over to corresponding converted journal in reporting SOB. Separate approval not needed in reporting SOB.
Journal entered directly in reporting SOB: Approval required based on Journal Approval settings in reporting SOB. No approval needed in primary SOB.
Not Enabled Enabled Journal entered in primary SOB: Associated converted journal in reporting SOB not required to be approved, regardless of Journal Approval settings in reporting SOB. Approval status set to N/A.
Journal entered directly in reporting SOB: Approval required based on Journal Approval settings in reporting SOB. No approval needed in primary SOB.
Enabled Not Enabled Journal entered and approved in primary SOB: Approval required based on Journal Approval settings in primary SOB. Not applicable to reporting SOB.
Journal entered directly in reporting SOB: No approval needed in primary or reporting SOB.
Table 1 - 4. (Page 1 of 1) Journal Approval Processing

Document Numbers

When you enter a journal in your primary set of books, the document number assigned to the journal is determined by the primary set of books and the converted journal in the reporting set of books is assigned the same document number. However, if you enter a journal in the reporting set of books, the document number assigned to the journal is determined by the reporting set of books.

See: Entering Journals
  Assigning Document Sequences

Entering Budgets

MRC does not convert budget amounts or budget journals from your primary set of books to your reporting set of books. If you need to report budget amounts in your reporting currencies, you can choose from two methods for each reporting currency:

Maintain Translated Budget Amounts in Primary Set of Books: In this case, you translate the budget amounts in your primary set of books to your reporting currency and maintain the converted amounts in the primary set of books. You can then create FSG reports using these translated budget amounts. For example, a budget variance report can take the translated budget amounts from the primary set of books and the reporting currency actual amounts from the related reporting set of books.

Maintain Budget Amounts in Reporting Set of Books: In this case, you maintain reporting currency budget amounts in your reporting set of books and report both budget and actual amounts from there. To use this method, you must duplicate the budget organization and setup information from your primary set of books in your reporting set of books. You must also enter your reporting currency budget amounts in the reporting sets of books, using one of these methods:

See: Overview of Budgeting
  Importing Journals
  Global Consolidation System

Encumbrances and Budgetary Control

For General Ledger, MRC automatically creates converted encumbrance journals in your reporting sets of books when you post the associated encumbrance journal in your primary set of books.

Note: Encumbrance journals are created in your reporting sets of books as functional encumbrance journals.

For Payables and Purchasing, you run the Create Journals program in General Ledger to create unposted encumbrance journals for your funds-reserved transactions. When you post these encumbrance journals in General Ledger in your primary set of books, MRC creates converted encumbrance journals in your reporting sets of books.

To use MRC with encumbrance accounting and/or budgetary control for Payables and Purchasing:

Note: You cannot enable budgetary control in a reporting set of books.

Note: GL Conversion Rules for the Payables and Purchasing journal sources are applied only to encumbrance journals. MRC will not convert actual journals that have these journal sources assigned.

See: Encumbrance Accounting
  Budgetary Control and Online Funds Checking
  Setting Up Budgetary Control
  Setting Up Budgetary Control in Purchasing and Payables
  Define General Ledger Conversion Rules

Revaluation

You must run revaluation in your primary set of books and in each of your reporting sets of books.

See: Revaluing Balances

Translation and Consolidation

See: Translation versus MRC

Mass Maintenance

You must run Move/Merge and Move/Merge reversal in your primary set of books and in each of your reporting sets of books.

See: Mass Maintenance.

See Also

Special Considerations for General Ledger

Primary versus Reporting Responsibilities

Completing MRC-Related Activities in the Correct Order

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