MRC Starting Dates (Multiple Reporting Currencies in Oracle Applications Help)


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MRC Starting Dates

You need to determine appropriate dates for two important MRC starting dates:

Logical Effective Date:

From Date:

Note: In determining which transactions or journals to convert, MRC compares the from date to the:

Transaction or journal date for Payables, Receivables, and General Ledger

Entered date for Purchasing, Assets, and Projects

When the from date precedes or is the same as the date being compared, MRC converts the transaction or journal.

Choosing a Logical Effective Date

Choosing a logical effective date is basically a business decision you must make for your organization. This decision is based primarily on your determination of when you want to start inquiring and reporting on transactions and balances in your reporting currencies.

We recommend that you choose a logical effective date that falls on the first day of your first MRC period. In addition:

Your first MRC period should be one for which you have not entered any transactions.

Your first MRC period should be the first period of a quarter to ensure that the quarter-to-date reporting currency balances for the quarter in which you enable MRC are correct.

If you use average balance processing and need to report average balances in your reporting sets of books, choose a logical effective date that is the first day of a fiscal year. This ensures that your period-average-to-date, quarter-average-to-date, and year-average-to-date reporting currency balances will be correct.

Choosing a From Date

Choosing an appropriate from date differs depending on the application for which you are setting the date. The considerations are the same for General Ledger, Payables, Receivables, and Purchasing. For Assets and Projects, the from date is determined automatically.

General Ledger, Payables, Receivables, and Purchasing

When setting the from date, you should choose a date that precedes the logical effective date and which is early enough to allow you to enter back-dated subledger transactions without adversely affecting the account balances in your reporting sets of books. We recommend that you choose a date that precedes the date of the first transaction in each application/operating unit (application only for General Ledger).

Note: Back-dated subledger transactions are those whose transaction dates precede the logical effective date.

If the from date is not sufficiently early, any back-dated transaction whose accounting date precedes the from date will not be converted by MRC to your reporting currencies.

The figure below illustrates why choosing an appropriate from date is important. The example shows how the accounts receivable balance in your reporting set of books is affected by your choice of from dates. The example assumes that you've chosen June 1st as your logical effective date and that you use General Ledger's Translation and Consolidation features to initialize the beginning balances in your reporting set of books. The section titled June Activity & Balances shows transaction and balance activity for June, and a subsequent period-end posting from Receivables to General Ledger.

Finally, the example introduces a back-dated transaction and illustrates how the General Ledger balances are affected when the from date precedes or follows the date of the transaction. In the example, notice that when the date of the back-dated transaction precedes the from date, the beginning balance in the reporting set of books is not updated as it should be.

Warning: Do not inquire or report on reporting currency balances from your subledgers for dates that fall in the intervening period between the from date and the logical effective date. Since the beginning balances in your reporting set of books will not yet be initialized, the reporting currency account balances will not be correct for this intervening period. However, the reporting currency amounts of any back-dated transactions that occur during the intervening period will be correct.

Assets

For Oracle Assets, the from date is set automatically at the time you assign the Assets conversion options on the Assign Reporting Set of Books window. MRC sets the from date to the Oldest Date Placed in Service value that you've entered in the Assets' System Controls window. You cannot update the from date.

Projects