Oracle General Ledger | Multi Currency | MRC
MRC is a set of unique features in Oracle Applications that allow organizations to report and maintain accounting records:
– at the transaction level
– in more than one functional currency
MRC benefits those organizations that must routinely report their transactions and financial
results in multiple currencies, other than their primary functional/accounting currency.
Business Usages
• Transitioning to the euro
• Supporting operations in countries with highly inflationary economies
• Supporting corporate exchange rates
• Reporting to management globally With MRC you can report balances and transactions in multiple functional currencies :
Perform online inquiries and generate reports, with GL account balances stated in reporting
currencies, without first translating primary functional currency amounts
• Perform online inquiries and generate reports of detail subledger transactions, with amounts stated in reporting currencies (no translation necessary)
• Build custom FSG reports with amounts stated in reporting currencies
• Consolidate subsidiary reporting currency account balances to the parent set of books.
MRC Process
1. Define currency, conversion type, primary SOB, Reporting SOB and assign the reporting SOB to primary SOB. 2. Create the journal in foreign currency and the system ‘ll automatically do the conversion to functional currency.
In the journal the entered currency‘ll be in foreign currency and converted (accounting currency) currency‘ll be in functional currency.
Remember you create invoices, payments and receipts in different foreign currency for the business requirement (to pay your supplier or receive check from the customer for convince) but the entire accountings takes place only in functional currency. If we enable MRC then the system‘ll also maintain all the transactions in reporting currency.
3. Import the journal and Post it to GL.
After you have posted your subledger transactions to General Ledger in the primary set of books and in each associated reporting set of books, you can log into a General Ledger reporting responsibility, post the newly created journals, and report the journals and the account balances of the reporting set of books.
Remember you need to setup MRC only if you want to maintain and report all the transactions in a different currency from your primary currency. If you only need to report balances in a currency other than your primary functional currency, you can use General Ledger translation.
Translating Balances
You can translate your actual and budget account balances from your ledger currency to another currency. You can launch translation from the Translate Balances window or from the Standard Request Submission (SRS) window. Translated balances are stored in balance-level reporting currencies. Balance level reporting currencies are defined in the Accounting Configuration using the Accounting Setup Manager or automatically generated during translation.
After completing Translation you can Translation Trial Balance Report to view the balances of all the accounts in the translated currency.
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