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MRC

( MULTIPLE REPORTING
CURRENCIES )

BY :
GAURAV UPMANYU
AGENDA

 FEATURES
 INTEGRATION WITH SUB LEDGERS
 MRC ACCOUNTING
 FOREIGN CURRENCY CONCEPTS
 THEIR OVERVIEW
FEATURES :
 Oracle General Ledger has full multi-
currency functionality to meet the needs of
global companies in a global economy.
 In line with ISO Standard #4217,Oracle
General Ledger comes with all ISO
currencies predefined .
 We just need to enable the currency to begin
using the Multi-Currency Accounting features
since US Dollar (USD) is only currency
enabled initially.
Use of Multi-Currency Accounting

 Enter transactions and report in any currency.


 Enter exchange rates online or automatically.
 Perform currency conversion on line and in real
time.
 Perform remeasurement and revaluation.
 Calculate realized and unrealized gains and
losses
 Translate actual and budget balances.
Some more ..

 Use daily, period end, average, and historical


rates.
 Comply with Generally Accepted Accounting
Principles.
 Review entered, converted, and translated
balances.
 Produce foreign currency financial statements
and reports.
Integrating with Sub ledgers
Multiple Currency Accounting
Multiple Reporting Currency Accounting
Prerequisites for entering Foreign
Currency Transaction
 Define new currencies
(N) Setup > Currencies > Define
 Enable seeded currencies
 Define set of books
 For EMU currencies, establish an EMU
relationship with the existing currency.
 Define daily conversion rate types
 Enter daily rates
Foreign Currency Concepts

Three main concepts are :

 CONVERSION

 REVALUATION

 TRANSLATION
 Conversion refers to foreign currency transactions
that are immediately converted at the time of entry to
the functional currency of the set of books in which the
transaction takes place.

 Revaluation adjusts asset or liability accounts that


may be materially understated or overstated at the end
of a period due to a significant fluctuation in the
exchange rate between the time the transaction was
entered and the end of the period.

 Translation restates an entire set of books or


balances for a company from the functional currency
to a foreign currency.
Conversion Overview
 Oracle General Ledger converts journal
amounts entered in foreign currency to
functional currency equivalents using daily
conversion rates.
E.g. of Entered Journal Entry
DR. Accounts Receivable…….10,000 Euro
CR. Revenue……………………10,000 Euro
Foreign Currency

Convert 1 Euro = .8 US Dollar

DR. Accounts Receivable………8,000 USD


CR. Revenue………………………8,000 USD
Functional Currency
Revaluation Overview
Prerequisites for running revaluation :
1. Define an unrealized gain/loss account.
2. Define a revaluation rate for each currency by
period.
E.g. of Entered Journal Entry

DR. Accounts Receivable…….10,000 Euro


CR. Revenue……………………10,000 Euro

Convert 1 Euro = .8 US Dollar


DR. Accounts Receivable………8,000 USD
CR. Revenue………………………8,000 USD

Revalue 1 Euro = .81 US Dollar


DR. Accounts Receivable………100 USD
CR. Unrealized gain…………..…100 USD
Translation Overview
 Foreign currency translation is a process through
which we restate our functional currency account
balance into a reporting currency.
Translation Rate Types
 Period End Rates: The daily rate on the last day of
your accounting period.
 Period Average Rates: The average of your daily
rates throughout your accounting period.
 Historical Rates: The weighted average rate for
transactions that occur at different points in time.
Overview
THANK YOU