MRC Features
Reporting Sets of Books
In Oracle Applications you record day-to-day business transactions in your organization's primary set of books or post transactions to the primary set of books from your subledgers. From the primary set of books, you can report your account balances in your primary functional currency.
To use MRC, you must define additional sets of books, called reporting sets of books, and associate them with a primary set of books. When defining a reporting set of books, you specify your reporting functional currency as the set of book's functional currency. This is the currency in which you want to inquire and report your transactions and account balances.
For example, assume your business is located in Canada. You use a primary set of books whose functional currency is Canadian Dollars (CAD), but you also need to inquire and report on your transactions and balances in U.S. Dollars (USD), since this is the functional currency of your parent organization. You define a reporting set of books with a functional currency of USD, then you associate this reporting set of books with your primary set of books.
Note: The full range of General Ledger functionality is available from a reporting set of books. You can post journals, revalue and translate balances, perform consolidations, query account balances, submit standard General Ledger reports, and define custom financial reports.
Transaction-Level Conversion
When you enter transactions in Oracle Applications that support MRC, they are converted, as needed, into your primary functional currency and each of your reporting functional currencies, as follows:
- Primary functional currency transactions: All transactions denominated in your primary functional currency are recorded in this currency. The transactions are also converted automatically to each of your reporting functional currencies.
- Foreign currency transactions: Transactions denominated in a foreign currency are converted automatically to your primary set of books' functional currency and to each of your reporting functional currencies.
Additional Information: For more information about how amounts are converted, see:
MRC Conversion Business Rules
Overview of Multi-Currency Accounting
Subledger Transactions
When you enter transactions into the subledgers of Oracle Applications that support MRC, the transactions are converted to your reporting functional currencies at the time of original entry. The primary functional currency amounts and their associated reporting currency amounts are stored together in your subledgers. You must post subledger transactions to General Ledger in both the primary set of books and in each reporting set of books.
Note: Since conversion occurs when the transactions are entered, your reporting currency amounts are always synchronized with your primary currency amounts.
General Ledger Journals
Journal entries that originate in General Ledger, such as manual journals, recurring journals, and MassAllocations, as well as journals that you import from sources other than Oracle Applications' subledgers, are converted to your reporting functional currencies when you post the journals in General Ledger in your primary set of books.
The converted journals are then copied from your primary set of books to each of the associated reporting sets of books. The converted journals must be posted separately in each reporting set of books.
Note: The balances in your reporting sets of books will not be synchronized with the balances in the associated primary set of books until you:
- Post your subledger transactions to General Ledger from both your primary and associated reporting sets of books
- Post all journals in your primary set of books
- Post the converted journals in each of the associated reporting sets of books
Inquiry and Reporting in Multiple Currencies
Oracle Subledgers
When you enter transactions into the subledgers of Oracle Applications that support MRC, the transactions are converted to your reporting functional currencies at the time of original entry. As a result, your reporting currency information is immediately available for inquiry and reporting in the subledgers. Each inquiry or report that normally displays information in the primary functional currency can also be displayed in any of the associated reporting currencies. To do so, you log into a reporting responsibility, then view and report transactions in the reporting currencies associated with that responsibility.
You must post subledger transactions to General Ledger in both the primary set of books and in each reporting set of books. After you have posted the transactions, you can log into a General Ledger reporting responsibility, post the newly created journals, then report on the journals and the account balances of the associated reporting set of books.
Oracle General Ledger
For General Ledger journals, you must complete the posting process in both your primary set of books and each associated reporting set of books before you can report on the updated balances. Note that separate balances are updated for each set of books.
Note: Before you can report on your updated balances, you must also post your subledger transactions to General Ledger from both your primary and associated reporting sets of books, and post the newly created journals in both your primary and associated reporting sets of books.
Each General Ledger report or inquiry that normally displays information in the primary functional currency can also be displayed in any of the associated reporting currencies. To inquire or report on the account balances of a reporting set of books, you log into the associated General Ledger reporting responsibility.
When you inquire on account balances in a reporting set of books, you can drill down to the subledger details (in your reporting functional currency) using General Ledger's standard drilldown features.
For reconciliation purposes, you can use the Financial Statement Generator (FSG) to create a custom comparison report that lists balances from your primary and reporting sets of books in separate columns. Use this report as the basis for reconciling your primary and reporting sets of books.
See: Overview of the Financial Statement Generator
Euro Support
MRC allows Oracle Applications to support organizations that are transitioning from their national currency to the Euro:
- Transition Period: If you currently use Oracle Applications, you can continue to maintain your current set of books in your national currency and use MRC to begin reporting transactions and financial results in the Euro. If you are implementing Oracle Applications for the first time, you can set up your primary set of books using Euro as the functional currency and use MRC to report transactions and financial results in your national currency.
- Currency Conversion: MRC observes the fixed-rate relationships you defined between the Euro and EMU currencies, as well as the effective starting dates of those relationships, when converting transaction amounts to or from the Euro or EMU currencies. When converting amounts from your primary functional currency to your reporting functional currencies, MRC fully complies with the conversion guidelines established by the European Commission.
See Also
Overview of Multiple Reporting Currencies
When to Use MRC
