Multiple Reporting Currencies

Overview: The Multiple Reporting Currencies (MRC) feature allows you to report and maintain accounting records at the transaction level, in more than one functional currency. You do this by defining one or more reporting sets of books, in addition to your primary set of books. In your reporting sets of books, you maintain records in a functional currency other than your primary functional currency. You can set up multiple reporting sets of books and associate them with a primary set of books.
Your primary functional currency is the currency you use to record transactions and maintain your accounting data within Oracle Applications. The functional currency is generally the currency in which you transact most of your business and the one you use for legal reporting.
A reporting functional currency is a currency other than your primary functional currency for which you need to report accounting data. You must define a set of books for each of your reporting functional currencies.
When you enter transactions in Oracle Applications, they are converted, as needed, into your primary functional currency and each of your reporting functional currencies. You log into a reporting responsibility to inquire and report on transactions and account balances in your reporting functional currencies.

Oracle Applications Support for MRCThe following Oracle Applications support Multiple Reporting Currencies:
· General Ledger
· Payables
· Purchasing
· Receivables
· Cash Management
· Projects
· Assets
· Cost Management

[Cost Management amounts are converted to a specified reporting currency when you request a report. The converted amounts, however, are not stored in the Cost Management subledger. ]


When to Use MRC: MRC is specifically intended for use by organizations that must regularly and routinely report their transactions and financial results in multiple currencies, other than their primary functional currency. If you only need to report balances in a currency other than your primary functional currency, the General Ledger Translation feature is probably sufficient.
* MRC is not intended as a replacement for General Ledger's translation feature.

Typically, you should consider using MRC when:

1) You operate in a country whose unstable currency makes it unsuitable for managing your business. As a result, you need to manage your business in a more stable currency and still be able to report your transactions and account balances in the unstable local currency.

2) Your company is multinational, and you need to report financial information in a common functional currency other than that of the transaction or your primary functional currency.

3) You operate in a country that is part of the European Monetary Union (EMU), and you want to concurrently report in Euro in preparation for the pan-European currency.


MRC Features

1- 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.

[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.]

2- 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.

3- 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.
Since conversion occurs when the transactions are entered, your reporting currency amounts are always synchronized with your primary currency amounts.

4- 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.
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.

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.

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.


Setting Up MRCThe following table provides a summary of the steps you must follow to set up MRC in your applications. These steps are described in more detail in the next section.
Note: You must install MRC before you can begin the setup steps in this section. See: Oracle Applications Installation Manual for information about installing MRC.


Step Description

Step 1 ­ Enable or define primary set of books :Set of Books window(General Ledger)
Step 2 ­ Enable and/or define reporting currencies :Currencies window(General Ledger)
Step 3 ­ Define reporting sets of books :Set of Books window(General Ledger)
Step 4 ­ Assign reporting sets of books to primary set of books: Assign Reporting Sets of Books window(General Ledger)
Step 5 ­ Define conversion options for each application: Conversion Options window(General Ledger)
Step 6 ­ Define General Ledger conversion rules: GL Conversion Rules window(General Ledger) Step 7 ­ Define reporting responsibilities : Responsibilities window(System Administrator)
Step 8 ­ Assign reporting sets of books to reporting responsibilities : System Profile Values window (System Administrator)

* Daily rates are used to convert your primary set of book's transactions to the appropriate reporting currencies. If you do not currently maintain daily rates, you must do so when you implement MRC.


Step 1 - Enable or Define Primary Set of Books
If you currently use Oracle Applications, you must enable your set of books as the MRC primary set of books. If you are installing Oracle Applications for the first time, you must define your primary set of books.
Note: Your primary set of books is where you record your day-to-day business transactions in Oracle Applications. The primary set of books uses a specific chart of accounts, accounting calendar, and functional currency. For MRC purposes, the functional currency is always the primary functional currency.
For each set of books you use with MRC, you need to specify whether it is a primary or reporting set of books. This is done on the Set of Books window, using the Reporting Currency Options alternative region.


Step 2 - Enable and/or Define Reporting Currencies
To use MRC, you may need to enable and/or define additional currencies if the currency you want to use for a reporting set of books is not already enabled or does not appear in the list of predefined currencies. In addition, you need to enable and/or define any currencies you expect to use to enter transactions.

Primary Functional Currency: the currency you use to record transactions and maintain your accounting data within Oracle Applications. The primary functional currency is generally the currency in which you transact most of your business and the one you use for legal reporting.
Reporting Functional Currency: a currency other than your primary functional currency for which you need to report accounting data. For example, as of January 1, 1999, the new pan-European currency, the Euro, will become effective. If you need to report in the Euro currency, you will need a reporting set of books with the Euro as the functional currency. Therefore, you need to enable the EUR currency.
Transaction Currency: the currency in which a transaction originates. For example, if you are a Canadian organization and you trade with organizations located in Japan, you must enable the Japanese Yen if you will be issuing purchase orders, generating invoices, paying bills, and receiving payments in Yen.


Step 3 - Define Reporting Sets of Books
To use MRC, you must define reporting sets of books and associate them with your primary set of books.
A reporting set of books is a financial reporting entity that is associated with a primary set of books. The reporting set of books has the same chart of accounts and accounting calendar as the primary set of books, but usually has a different functional currency.
For example, assume that your company headquarters is located in Australia and that its primary functional currency is Australian Dollars (AUD). Assume also that you have one subsidiary each in Canada and Germany, both of which maintain a primary set of books in its local functional currency -- Canadian Dollars (CAD) for the Canadian subsidiary and Deutsche Marks (DEM) or the Euro (EUR) for the German subsidiary. Each subsidiary should maintain a reporting set of books in AUD, so it can analyze and report transactions using the parent's functional currency.
For each reporting set of books you define, you need to specify it as a reporting set of books on the Set of Books window, using the Reporting Currency Options alternative region.

Other Considerations:
1- If your primary set of books is defined as an average balances consolidation set of books, any associated reporting sets of books must also be defined as average balances consolidation sets of books.
2- If you use combined basis accounting with Oracle Payables, you will have two Payables sets of books (primary and secondary). One will be for accrual basis accounting and the other will be for cash basis accounting. If you want to report Payables transactions in your reporting currencies for each accounting basis, you must define a reporting set of books for each.
Other Set of Books OptionsSome set of books options, such as the chart of accounts and accounting calendar, must be the same in both your primary and reporting sets of books. For other set of books options, we specifically recommend or do not recommend that they be the same in both your primary and reporting sets of books. For still other set of books options, you set them in each reporting set of books depending on what features you want available in that reporting set of books.

Set of Books Options - Recommended Setting in Reporting Sets of Books
1- Functional Currency - Different from primary set of books unless you have a specific reason for using the same functional currency in both sets of books (see Note below)
2- Allow Suspense Reporting - Same as primary set of books.
3- Balance Intercompany Journals - Same as primary set of books.
4- Enable Average Balances - Same as primary set of books only if you want to inquire and report average balance transactions in your reporting currency.
5- Enable Journal Approval - Same as primary set of books only if you want journals created directly in your reporting set of books to be processed through your organization's approval hierarchy.
6- Enable Journal Entry Tax - Same as primary set of books. If it is not the same, you will not be able to view tax details when you inquire on journals in your reporting set of books.
7- Accounts - Same as primary set of books.
8- Average Balance Options: Consolidation Set of Books - Must be the same as primary set of books.
9- Enable Budgetary Control - You cannot enable for reporting sets of books.
10- Require Budget Journals - Same as primary set of books if you want to require that budget journals be used to enter budget amounts in your reporting set of books.

[ In some circumstances, you may want to use the same functional currency for both your primary and reporting sets of books. For example, for financial or currency management. You can apply different revaluation options in the primary and reporting sets of books, providing different financial information for each set of books.]


Step 4 - Assign Reporting Sets of Books to Primary Set of Books: Use the Assign Reporting Sets of Books window to assign each reporting set of books to its related primary set of books. Note the following rules:
1- You can assign up to eight reporting sets of books to a single primary set of books. Most organizations will find no need to assign more than three.
Caution: If you need to assign more than three reporting sets of books to a primary set of books, be aware that each additional assignment will have an incremental impact on your system's performance and disk space consumption.

2- You can assign the same reporting set of books to more than one primary set of books, provided they all have the same calendar and chart of accounts. You might want to do this if you need to consolidate transactions from multiple primary sets of books (with the same or different functional currencies) into the same reporting currency.

3- You cannot assign a primary set of books to another primary set of books, or to a reporting set of books.

4- If you use combined basis accounting in Oracle Payables, you only need to assign the related reporting set of books to your Payables primary set of books in this step. The relationship for the Payables secondary set of books will be made in the next step when you define the Payables conversion options.

To assign a reporting set of books to a primary set of books:
1. Navigate to the Assign Reporting Set of Books window.
2. Select your primary set of books from the list of values. The set of books' functional Currency, Chart of Accounts, and accounting Calendar will be displayed.
Note: Only those sets of books that have been defined as a primary set of books will be included in the list of values.
3. From the list of values in the Reporting Set of Books region, select the reporting set of books that you want to assign to the primary set of books. The reporting set of books' functional currency will be displayed.
Only those sets of books that have been defined as a reporting set of books will be included in the list of values.
4. Choose the Conversion Options button to define conversion options for each combination of Oracle Application and operating unit for which you want to convert transactions to your reporting functional currency for this reporting set of books.
5. Save your work.
6. Repeat the previous three steps for each reporting set of books you want to assign to the primary set of books.



Step 5 - Define Conversion Options for Each Application For each reporting set of books assignment you make, you must define conversion options for each combination of Oracle Application and operating unit for which you want to convert transactions to your reporting functional currencies. You can set conversion options for these applications:
· General Ledger
· Assets
· Payables
· Receivables
· Projects
· Purchasing

When you use Oracle Applications' Multiple Organizations feature with Payables, Receivables, Purchasing, or Projects, you need to define your MRC conversion options at the operating unit level.
For Assets, you define conversion options at the Asset Book level. For General Ledger, you define conversion options at the application level only.
Conversion options you can set include the reporting conversion type, the action to take when a conversion rate cannot be found, and the range of effective dates for which transactions should be converted to reporting currencies. Also, you need to set some application specific options, such as
Oracle Assets: specify the Asset Book (depreciation book).
Oracle Payables: optionally specify the AP Reporting Secondary Book if you use combined basis accounting.
General Ledger: specify GL Conversion Rules, which control journal conversion at the journal source and category level.

To assign conversion options to Oracle Applications:
1. From the Assign Reporting Set of Books window, choose the Conversion Options button. The Conversion Options window will appear, displaying your primary and reporting set of books information.
2. Select Operating Units/Books from the poplist.
3. In the region below the poplist, select the application for which you want to define conversion options.
4. Enter your operating units/books information.
5. Choose Conversion Options from the poplist. The Conversion Options alternative region will appear.
6. Enter your conversion options.
7. Save your work.

Operating Units/Books Information:
1- Operating Unit: For Payables, Receivables, Purchasing, or Projects, specify the operating unit for which your conversion options apply. This allows you to define different conversion options for each operating unit. Also, if you don't want an operating unit's transactions converted to your reporting currencies, you can choose to omit that operating unit when you define the conversion options for the related application.
2- Asset Book: For Assets, specify the asset depreciation book for which your conversion options apply. The asset depreciation book can be either a corporate book or a tax book. You can associate multiple asset depreciation books to a reporting set of books.

The asset depreciation book you specify must be linked to your primary set of books.
AP Reporting Secondary Book: For Payables, enter the AP Reporting Secondary Book if you use combined basis accounting and want your Payables secondary set of books transactions to be converted to your reporting currencies.

Conversion Options
1- Reporting Conversion Type: The conversion rate type MRC uses to retrieve exchange rates for converting transactions to your reporting currency. This differs from the conversion rate type you specify when you enter a transaction. Oracle Applications use the transaction conversion rate type to retrieve exchange rates for converting entered amounts from the transaction currency to your primary functional currency (alternatively, you can specify your own rate).
- You must enter a Reporting Conversion Type when defining conversion options for your subledger applications, such as Payables and Receivables.
- For General Ledger, the reporting conversion type is set for specific combinations of journal source/category on the GL Conversion Rules window.
- For the reporting conversion type, you can specify your own conversion rate type or choose one of the predefined rate types. To specify your own, you must first define it in General Ledger.

2- No Rate Action: Determines the action MRC should take if it cannot find a rate for converting transactions to your reporting functional currency, for the reporting conversion type as of the conversion date.

For General Ledger, the No Rate Action field is set for specific combinations of journal source/category on the GL Conversion Rules window.

You can select one of two options:
1- Report Error: If MRC cannot find an exchange rate for converting to the reporting functional currency, you will receive an error when you try to save the transaction.
2- Use Last Rate: If MRC cannot find an exchange rate for converting to the reporting functional currency, it retrieves the most recently entered exchange rate. If MRC cannot find a stored exchange rate, you will receive an error when you try to save the transaction.

- If you do not enter a value for the No Rate Action field, it defaults to Use Last Rate.

- When searching for the exchange rate, MRC will only look backwards the number of days specified in the profile option, MRC: Maximum Days to Roll Forward Conversion Rate. If you have not specified an entry for the profile option, MRC will search back as far as the first entered exchange rate.

3- Effective Dates -- From/To: The range of effective dates for which you want to convert transactions to your reporting functional currency for the specified:
- Application and operating unit for Receivables, Payables, Purchasing, and Projects
- Application and Asset Book for Assets
- Application only for General LedgerYou must enter a From date, which is the first date for which MRC will convert transactions.

* If you specify a To date for Assets or Projects, the Application will immediately stop converting transactions to your reporting currencies. This happens regardless of the To date you specify, even if it is a future date.

4- Changing Conversion Options: You cannot delete conversion options once you save them. You can, however, change some of them, depending on the application to which they apply:

a) All applications: You can change the effective dates any time. Note that the changes are effective immediately, but that they apply only to new transactions. The change has no effect on previously entered transactions.

* We strongly recommend you do not change effective dates once you begin using MRC. Changing the effective dates may result in inconsistent transaction amounts and balances in your reporting sets of books.

b) All applications except General Ledger: You can change the Reporting Conversion Type and the No Rate Action values any time. Note that the changes are effective immediately, but that they apply only to new transactions. The change has no effect on previously entered transactions.

c) Payables: You can change the AP Reporting Secondary Book. The change is effective immediately, but applies only to new transactions. The change has no effect on previously entered transactions.

* We strongly recommend you do not change the AP Reporting Secondary Book once you begin using MRC. Changing the AP Reporting Secondary Book may result in inconsistent transaction amounts and balances in your AP Reporting Secondary Book.


Step 6 - Define General Ledger Conversion Rules: When you use MRC with General Ledger, you need to define conversion rules in addition to the effective dates you specify for General Ledger's conversion options in the previous step. Conversion rules control journal conversion at the journal source/category level.
You can define conversion rules for all predefined journal sources except these:

a) Revaluation, Move/Merge, and Move/Merge Reversal -- MRC will not convert journals that have these journal sources. Instead, you need to run each of these processes in both your primary and reporting sets of books.

b) Receivables, Assets, Projects, AX Payables, and AX Receivables -- MRC converts transactions from these sources directly in the subledgers and stores the related reporting currency amounts in those subledgers.Note that 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.

To assign conversion rules to General Ledger:
1. From the Conversion Options window, select the Oracle General Ledger entry from the region below the poplist, then choose the GL Conversion Rules button.
2. Mark the Convert check box if you want journals with the specified journal source and category to be converted to your reporting currency. Leave the check box unmarked if you do not want journals with the specified journal source and category to be converted.
3. Enter the journal source and category for which you want to set conversion rules.
Note: You can enter a specific journal source or category or enter Other to select a source or category other than those you have specifically defined.
4. Select the Reporting Conversion Type and No Rate Action to use when converting journals with the specified journal source and category.
5. Save your work.

Journal Source/Category Combinations MRC uses the journal source and category combinations you define in your GL conversion rules to determine if a journal should be converted.

When you post journals in your General Ledger primary set of books, MRC notes each journal's source and category as it is posted. MRC then searches your defined conversion rules for a matching source and category combination. MRC searches the conversion rules in the following order, regardless of the order you entered the rules on the GL Conversion Rules window:

Search Order - Journal Source - Journal Category
1 - Specific source - Specific category
2 - Specific source - Other
3 - Other - Specific category
4 - Other - Other

If MRC finds a matching source/category combination, it notes the reporting currency type and checks to see if transactions with the identified source/category combination are to be converted. If they are to be converted, MRC converts the journal amount to the reporting currency and creates the converted journal in the reporting set of books. Otherwise, the journal is not converted and the next journal in the posting batch is processed.

* If MRC cannot find a matching source/category combination, or if you have not defined any GL conversion rules, the journal will not be converted.

Below are three examples that illustrate how journals are converted based on different conversion rules.

Example Assumptions -
Journal Source - Journal Category
Journal #1 - Manual - Adjustment
Journal #2 - Consolidation - Consolidation
Journal #3 - Manufacturing -Freight
Journal #4 - Spreadsheet - Adjustment
Journal #5 - Manufacturing - Labor Cost

Example 1

The following six conversion rules are defined:
Source ----------- Category - Convert ------ Result
Manual ----------Adjustment --Yes ---Journal #1 is converted, using the defined conversion options for this combination.
Consolidation --- Consolidation -- No --- Journal #2 is NOT converted.
Other --- Freight -- Yes --- Journal #3 is converted, using the defined conversion options for this combination. (i.e., All journals with category Freight are converted).
Spreadsheet --- Reclass -- Yes --- No journals in the example match this combination. (All journals with source Spreadsheet and Category Reclass are converted, using the defined conversion options for this combination.)
Spreadsheet --- Other -- No --- Journal #4 is NOT converted. (i.e., All journals with source Spreadsheet (except those with category Reclass) are NOT converted.)
Other --- Other -- Yes --- Journal #5 is converted, using the defined conversion options for this combination.


Example 2
The following three conversion rules are defined:
Source --- ------- Category -- Convert --- Result
Manufacturing --- Freight --No ---Journal #3 is NOT converted. (i.e., All journals with source Manufacturing and category Freight are NOT converted.)
Manufacturing --- Other -- Yes --- Journal #5 is converted. (i.e., All journals with source Manufacturing are converted, except those with category Freight.)
Other ---Other -- Yes --- Journals #1, 2, and 4 are converted, using the defined conversion options for this combination.

Example 3
The following two conversion rules are defined:
Source --- Category -- Convert --- Result
Manufacturing -- Freight -- No --- Journal #3 is NOT converted. (i.e., All journals with source Manufacturing and category Freight are NOT converted.)
Manufacturing --- Other -- Yes --- Journal #5 is converted. (i.e., All journals with source Manufacturing are converted, except those with category Freight.)

* In this example, Journals #1, 2, and 4 are NOT converted, since there is no conversion rule defined with a source of Other and a category of Other.

Changing Conversion Rules: You can delete General Ledger conversion rules at any time. You can also change a conversion rule as needed. For example, for any journal source/category combination, you can change the Convert option, Reporting Conversion Type, and No Rate Action value. Note that the changes are effective immediately, but that they apply only to new journals. The change has no effect on previously entered journals.


Step 7 - Define Reporting Responsibilities: You or your system administrator must define your organization's MRC reporting responsibilities before anyone uses MRC. The purpose of these reporting responsibilities is to provide the appropriate level of access your users need to perform their inquiry and reporting activities in your reporting currencies.

A responsibility is a level of authority in Oracle Applications that lets users access only those Oracle Applications functions and data appropriate to their role in an organization. Each responsibility allows access to a specific application or applications, a set of books, a restricted list of windows, a restricted list of functions, and reports in a specific application.

1- This step is generally performed by a system administrator.
2- The responsibilities you define in this step should be used for inquiry and reporting purposes only. Day-to-day activities, such as creating purchase orders or invoices, should be performed using your standard subledger responsibilities.
3- This step applies only to your Oracle Applications subledgers and not to General Ledger. For example, you may need to define a Payables reporting responsibility and a Purchasing reporting responsibility.
4- Oracle provides predefined MRC responsibilities as examples you can use to set up your organization's reporting responsibilities.

Responsibilities Window: Use the Responsibilities window to define your MRC reporting responsibilities.

When you define your reporting responsibilities, follow the guidelines below for completing the fields on the Responsibilities window:
Data Group Name: Select the name of the data group you defined earlier when you installed MRC.
Menu: Enter the name of the MRC menu for the product for which you are defining the reporting responsibility. To use the related predefined MRC menu, select the MRC menu for your product from the list of responsibilities. Pre-defined MRC menus are in the format _MRC_NAVIGATOR_GUI.
Most of the predefined product-specific MRC menus allow users to access only the product's inquiry functions and windows. For some products, other functions and windows are also accessible. For example, Assets users can run depreciation in both the primary and reporting sets of books.

* We strongly recommend that you use the predefined product-specific MRC menus provided by Oracle, rather than creating a custom menu. If you choose to create a custom menu, we suggest that you start by making a copy of the related predefined menu, then make any custom changes to the copy.
Your custom menu should not allow users to access any windows or functions that are not already included in the predefined MRC menu. Any other windows or functions you add to your custom menu will not function properly when accessed by users.

Request Group Name: Enter the name of the MRC request group for which you are defining the reporting responsibility. To use the related predefined MRC request group, select the request group from the list of values. Pre-defined MRC request groups are in the format MRC Programs .
The predefined MRC request groups allow users to access only those reports and programs that are appropriate to run when using an MRC reporting responsibility.
To use a custom request group, enter the name you gave to that request group when you defined it.

* We strongly recommend that you use the predefined MRC request groups provided by Oracle, rather than creating a custom request group. If you choose to create a custom request group, we suggest that you start by making a copy of the related predefined request group, then make any custom changes to the copy.

Your custom request group should not allow users to access any programs that are not already included in the predefined MRC request group. Any other programs you add to your custom request group will not function correctly when accessed by users. You can include any report in your custom request group, however, those reports which are not already included in the predefined request group will not display reporting currency amounts.



Step 8 - Assign Reporting Sets of Books to Reporting Responsibilities: You or your system administrator must assign a reporting set of books to each of the reporting responsibilities defined in the previous step. This ensures that anyone using the reporting responsibility has access to the correct subledger reporting currency amounts.

* This step is generally performed by a system administrator.

To create the association between a reporting responsibility and a reporting set of books, set the following two profile options to the reporting set of books name at the responsibility level for each of your reporting responsibilities:
- GL: Set of Books Name
- MRC: Reporting Set of Books


MRC Conversion Business Rules
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:

1-Primary functional currency transactions: All transactions denominated in your primary functional currency are recorded in this currency. MRC converts the transactions automatically to each of your reporting currencies.
2- Foreign currency transactions: Transactions denominated in a foreign currency are converted automatically to your primary set of books' functional currency. MRC converts the transactions to each of your reporting currencies.MRC generally converts from the transaction currency to your reporting currencies. In some cases, MRC converts from the primary functional currency to your reporting currency. We discuss the reporting currency conversion rules in the next section.


Reporting Currency Conversion Rules Reporting currency conversion rules differ depending on whether the exchange rate relationship between a transaction and reporting currency is variable or fixed. When there is a variable relationship, the exchange rate between the two currencies fluctuates. When there is a fixed relationship, the exchange rate between the two currencies remains constant, having been fixed at a specific point in time.

* As of January 1, 1999, the national currencies of countries who are members of the European Monetary Union (EMU) will become another denomination of the Euro, the pan-European currency. Fixed exchange rates will be used between the Euro and each EMU currency.


Conversion Rounding: MRC rounds converted and accounted amounts using the same rounding rules used throughout Oracle Applications products. MRC also considers several factors that are a part of all the currencies predefined in Oracle Applications, including:
Currency Precision: the number of digits to the right of the decimal point used in regular currency transactions.
Extended Precision: the number of digits to the right of the decimal point used in calculations for the currency.
Minimum Accountable Unit: the smallest denomination used in the currency. Note that this might not correspond to the precision.


MRC Implementation Considerations:

1- Type of Installation: Different issues arise when you implement MRC for a new Oracle Applications installation versus enabling MRC after upgrading from an earlier version of Oracle Applications.

2- MRC Starting Dates: Determine appropriate dates to use for initializing account balances in your reporting sets of books and for entering back-dated subledger transactions.

3- Initializing Account Balances in Reporting Sets of Books: Initialize the beginning account balances in your reporting sets of books. You must also choose an initializing method.

4- Translation versus MRC: Discusses the differences between General Ledger's Translation feature and MRC.

1- Type of Installation: The initial release of MRC supports two specific types of installation:
A) Fresh Install: New customers who install Oracle Applications for the first time and enable MRC.
* For Oracle subledger applications that support MRC, you must enable MRC before entering any transactions in the subledgers. There is no such restriction for General Ledger.
B) Upgrade Scenario 1: Existing customers who upgrade from an earlier release of Oracle Applications, then enable MRC.

For Oracle subledger applications that support MRC, you must enable MRC in:
1- A new set of books or
2- A new operating unit in an existing set of books
before entering any transactions in the subledgers. There is no such restriction for General Ledger.

Following the initial release of MRC, a planned patch will support a second upgrade scenario:
C) Upgrade Scenario 2: Existing customers who upgrade from an earlier release of Oracle Applications, then enable MRC for an existing set of books or operating unit when there are open transactions in subledgers that support MRC.

* An open transaction is a subledger transaction whose accounting lifecycle has not been completed. For example, a receivables invoice for which you have not received payment from the customer, a payables invoice which you have not paid, or a project that has an open status.

Following the patch, a planned maintenance release for MRC will support a third upgrade scenario:
D) Upgrade Scenario 3: Existing customers who upgrade from an earlier release of Oracle Applications, enable MRC, and want to convert historical transaction amounts in their subledgers to their reporting currencies.

Notes:
1- For both Fresh Install and Upgrade Scenario 1, if you enter transactions in a subledger before enabling MRC, there will be open transactions when MRC is enabled. Any subsequent entries related to the open transactions (e.g., credit memos, receipts, payments, or project expenditure adjustments) that occur after MRC is enabled will not be converted to reporting currencies and may cause an error condition.
To avoid this situation, you must install the planned patch when it becomes available, then convert the open transactions to your reporting currencies.

2- If you are an existing customer upgrading from an earlier release of Oracle Applications and you have no open transactions in subledgers that support MRC, you can enable MRC for those subledgers without creating a new set of books or operating unit.

Warning: Do not reopen closed transactions if you have enabled MRC without creating a new set of books or operating unit.


2- MRC Starting Dates:
You need to determine appropriate dates for two important MRC starting dates:
1- Logical Effective Date: The date on which you initialize the account balances in your reporting sets of books.
2- From Date: The first date for which MRC will start converting transactions to your reporting functional currency. You enter the from date on the Conversion Options window.

* In determining which transactions or journals to convert, MRC compares the from date to the:
a) Transaction or journal date for Payables, Receivables, and General Ledger
b) 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.

1- 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.
It is recommended 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.

2- 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 and Assets: 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).

* 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.

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.

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.


3- Initializing Account Balances in Reporting Sets of Books: You must initialize the beginning balances in your reporting sets of books before you can inquire and report on account balances in your reporting currencies. The steps in this section explain how to initialize your account balances.

First MRC Period: The first accounting period for which you want to be able to report transactions and balances in your reporting currencies. You must enable MRC and initialize your reporting sets of books' beginning account balances before the first MRC period.

Initial Period: The accounting period preceding the first MRC period.
Note: During the process of initializing account balances in your reporting sets of books, you should not post any new journals.

Step 1 Post in the Primary Set of Books
We recommend that you post all outstanding transactions in your primary set of books at the end of the initial period. This includes posting:
(For Upgrade Scenarios 2 and 3) All subledger transactions to General Ledger.
Caution: Do not enter any new transactions in subledgers that support MRC until you complete setting up MRC.
All journals in General Ledger.Posting all outstanding transactions and journals ensures that the ending account balances in your primary set of books are up to date.

Step 2 Close the Initial Period in Primary Set of Books
In General Ledger, close the initial period in your primary set of books to ensure that new transactions will not update the account balances.

Step 3 Open the Initial Period in Reporting Sets of Books
Before you initialize account balances in the next step, make sure you have opened the initial period in General Ledger in your reporting sets of books.

Step 4 Initialize Balances
You can use several methods to initialize the balances in your reporting sets of books:
1- Translation & Consolidation: Translate the balances in your primary set of books then consolidate them into your reporting sets of books.
2- Import Beginning Balances: Use General Ledger's Journal Import feature to import your beginning balances from an external source.
3- Manual Journals: Use General Ledger's Enter Journals window to manually enter your beginning balances.

If you decide to use the translation and consolidation method to initialize your reporting sets of books' account balances, complete the three steps below for each reporting set of books:
1. Translate Balances.
Run General Ledger's Translation feature to convert balances from your primary functional currency to the appropriate reporting functional currency.
Suggestion: For convenience, you can translate your balances to all of your reporting currencies at the same time.

2. Consolidate to Reporting Set of Books.
Use General Ledger's Global Consolidation System to consolidate the translated balances from your primary set of books to your reporting set of books.

3. Post Consolidation Journals in your reporting set of books.
Posting the consolidation journals updates the balances in your reporting set of books.

Step 5 Close the Initial Period in Reporting Sets of Books
Close the initial period in your reporting sets of books. This is necessary before the initial period's ending balances can be used to create the beginning balances of your first MRC period.

Step 6 Opening the First MRC Period
For General Ledger, open the first MRC period in both your primary and reporting sets of books. This will automatically create your beginning account balances for the first MRC period.
In your subledgers that support MRC, open the first MRC period only in your primary set of books. The same period will be opened automatically in your reporting sets of books.

4- Translation versus MRC: General Ledger's translation feature is used to translate amounts from your functional currency to another currency at the account balances level. MRC converts amounts from your transaction currency to a reporting currency at the transactions level.

MRC is specifically intended for use by organizations that must regularly and routinely report their financial results in multiple currencies. MRC is not intended as a replacement for General Ledger's Translation feature. For example, an organization with a once-a-year need to translate their financial statements to their parent company's currency for consolidation purposes, but no other foreign currency reporting needs, should use General Ledger's standard translation feature instead of MRC.

Another benefit of MRC over General Ledger's Translation feature is that with MRC you can inquire and report on transaction amounts in your reporting currencies directly from your subledgers. Translation only applies to General Ledger -- it cannot be used to translate transaction amounts in your subledgers.

If you use MRC and have properly initialized your reporting set of book's balances, you can report directly from your reporting sets of books without running Translation. This is because the actual transaction amounts in your reporting sets of books have already been converted from your primary set of book's functional currency. As a result, the account balances of your reporting set of books are automatically maintained in your reporting currency.
For example, to consolidate a subsidiary that maintains a reporting set of books using your parent company's functional currency, you might simply consolidate the reporting set of books to your parent set of books, rather than translating, then consolidating the subsidiary's primary set of books.

Usually, when you compare the results of using amounts from your reporting set of books rather than translated primary set of book's amounts, there will be rounding differences in your accounts. Many of these differences arise because a reporting set of book's transaction amounts are converted using daily rates. Translation, however, uses period or historical rates to translate account balances.

Before you use your reporting set of book's amounts in lieu of translating your primary set of book's amounts, you need to understand and carefully consider:
- How MRC works.
- The country-specific accounting rules and regulations that govern your parent and subsidiary companies.

Note About Budget Balances: If you use MRC and need to report budget amounts in your reporting currency, you will need to translate the budget amounts in your primary set of books to your reporting currency.
For example, after translating budget amounts to your reporting currency, you can use FSG to create a budget variance report with three columns:
a) Translated budget amounts. Your FSG column set can draw these amounts directly from your primary set of books.
b) Reporting currency actual amounts. Your FSG column set can draw these amounts from your reporting set of books.
c) The variance between budget and actual, expressed in your reporting currency.