Mulitple Reporting Currency – MRC – In Oracle Applications

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 MRC

 

· Receivables

· Purchasing

· Payables

· General Ledger

The following Oracle Applications support Multiple Reporting Currencies:

· Cash Management

 

 

 

· Projects

 

 

 

 

· 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. ]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.

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.

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.

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.

Typically, you should consider using MRC when:

 

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

 

 

 

 

 

 

 

 

Step Description

Step 1 ­ Enable or define primary set of books :Set of Books window(General Ledger)

When to Use MRC:

MRC Features

1- 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 MRC The following 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 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.

*

· Assets

 

Oracle Receivables – FAQ , Interview Questions ( Functional & Technical)

 

Oracle Receivables – FAQ , Interview Questions ( Functional & Technical) 

Hello Friends, As part of putting Oracle Application Interview Questions for various modules, here i am putting Receivables , most of them are quite functional and link with Oracle Receivables features, still it is good to learn and know for a technical developer to get overall understanding. do share your feedback n thoughts. 

What is MRC and what is its use?

The Multi Reporting Currency Feature allows you to report and maintain records at the transaction level in more than one functional currency. You can do by defining one or more set of books in addition to primary set of books.

 

 

 

Accointing for invoice in advance

a) Receivable A/c …………………Dr.

To Unearned revenue a/c

(when we raise the invoice with invoicing rule as advance)

b) Unearned Revenue A/c ………….. Dr.

To Revenue A/c

(when we receive the payment, the number of journal entry (b) is depend upon the accounting rules which can be fixed or variable)

Accounting for invoice in arrear

a) Unbilled receivable a/c ………………..Dr.

To Revenue a/c

(when we receive the payment of unbilled invoice, the number of journal entry (a) is depend upon the accounting rules which can be fixed or variable))

b) Receivable a/c …………………….Dr.

To Unbilled receivable a/c

(when we raise the invoice, with invoicing rule arrear)

 

What is the use of Transaction Flexfield in Autoinvoice ?

Transaction Flexfield actually identifies the the uniqueness among the Multiple lines of a single Invoice

 

 

What are value sets?

Value sets are the defined as list of possible values for a specific purpose. These are assigned to flexfields. These are the only possible values to be choosen from. This eliminates the data entry errors.

Value set is a set of possible values.

There are 8 value set types:

1.Dependent

2.Independent

3.Table

4. None

5.Pair

6.Translatable Dependent

7.Translatable Independent

8. Special

Describe the main tables involved in AR, and what is the data stored in them?

RA_BATCHES_ALL — Information about Transaction BATCHES RA_CUSTOMER_TRX_ALL — Header information about Transaction

RA_CUSTOMER_TRX_LINES_ALL — Lines information about Transaction

RA_CUST_TRX_LINE_GL_DIST_ALL – Distribution information about Transaction

RA_CUST_TRX_LINE_SALESREPS_ALL — Sales representative of Transaction Information

AR_PAYMENT_SCHDULES_ALL – Information about Payment Schedules

AR_APPLICATION_PAYABLES_ALL

RA_INTERFACE_ERRORS – Errors in AutoInvoice Interface Data

RA_INTERFACE_LINES_ALL – Use this table to enter Header and Lines information in AutoInvoice Interface program

RA_INTERFACE_DISTRIBUTIONS_ALL – Distribution Table in AutoInvoice Interface program

RA_INTERFACE_SALESCREDITS_ALL – Sales Credits information in AutoInvoice Interface

 

 

What do you mean by HZ_ in customer tables?

HZ stands for Human Zone(HZ_). Anytihing which is related to the human like Customer profiles, their accounts, locations, relationships are stored in these tables only. From release 11i TCA came into picture in Accounts Recievable module, where oracle has grouped all the customer information at one place. Most important tables in TCA are-

HZ_PARTIES,

HZ_CUST_ACCOUNTS_ALL,

HZ_CUST_ACCT_SITES_ALL,

HZ_CUST_SITE_USES_ALL,

HZ_LOCATIONS,

HZ_PARTY_SITES,

HZ_PARTY_SITE_USES,

HZ_CONTACT_POINTS. few to name.

What is the difference between _all, _tl, _vl, _v tables in Oracle Apps ? Also name various other table suffix.

_ALL : Table holds all the information about different operating units. Multi-Org environment. You can also set the client_info to specific operating unit to see the data specific to that operating unit only.

_TL are tables corresponding to another table with the same name minus the _TL. These tables provide multiple language support. For each item in the table without _TL there can be many rows in the _TL table, but all with different values in the LANGUAGE column.

_B these are the BASE tables. They are very important and the data is stored in the table with all validations. It is supposed that these table will always contain the perfect format data. If anything happens to the BASE table data, then it is a data corruption issue.

_F these are date tracked tables, which occur in HR and Payroll. For these there are two date columns EFFECTIVE_START_DATE and EFFECTIVE_END_DATE which together with the PK identifies a row uniquely. The date intervals cannot overlap. Many think they are Secured data. Guess someone from Oracle confirms.

_V tables are the views created on base tables _VL are views for multi language tables which combines the row of the base table with the corresponding row of the _TL table where the LANGUAGE = USERENV(’LANG’).

_S are sequences, used for finding new values for the primary key of a table.

_A are Audit Shadow Tables

_AVN and _ACN are Audit Shadow Views (when data was changed, and with what values)

How many Flex fields are there in AR and what are they?

Required Key Flex fields:

1. Territory Flex field

2. Sales Tax Location flex field

Optional Key Flex fields:

1. Transaction flex field (requied only if Auto Invoicing is enabled)

2. System Items Flex field (If Inventory or OM is installed this should be defined there. other wise, it should be set up in AR).

 

 

 

Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables automatically numbers your transactions and transaction batches. You can define two types of transaction batch sources-Manual and Imported

 

What is the importance of Batch Source set up in AR ?

 

 

 

 

 

 

 

 

Explain Accounting for invoice in Advance and Arrears.

 

 

How is the balance of an invoice derived ?

Differences between Oracle Technical, Oracle Functional and Oracle Techno-Functional

We can take these three areas as how people/ professional pursue their interest as well how business and technology piece link together. The importance of all three role is same and only context of business and IT Project lifecycle along … Continue reading →