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GL Currency

In Oracle, there are two types of currencies used - functional and entered currency. Functional currency is the local currency of the organization, like PKR for Pakistan. Entered currency is any other currency used for transactions, which gets converted to functional currency. Currency conversions use foreign exchange rates defined in rates tables to convert entered currency amounts during posting and revaluation. Revaluation updates entered currency balances to current exchange rates before period close. Translation handles currency conversion when consolidating multi-currency transactions.

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26 views

GL Currency

In Oracle, there are two types of currencies used - functional and entered currency. Functional currency is the local currency of the organization, like PKR for Pakistan. Entered currency is any other currency used for transactions, which gets converted to functional currency. Currency conversions use foreign exchange rates defined in rates tables to convert entered currency amounts during posting and revaluation. Revaluation updates entered currency balances to current exchange rates before period close. Translation handles currency conversion when consolidating multi-currency transactions.

Uploaded by

barber bob
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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GL: Currency

Currency in General Ledger is one of the 4Cs.


In R12 there is an additional feature given that if you have a separate Reporting Currency then
you dont need to create a separate ledger. You only need to define a Reporting Currency ledger
in your Accounting Setup Manager.
There are two types of Currency in Oracle
1.

Functional Currency: Currency thatis attached to Primary Ledger or in other terms the
Local Currency. For example functional currency for Pakistan is PKR. Any organization
operating in Pakistan will have a functional currency as PKR.

2.

Entered Currency: Currency attached to primary ledger other than the functional/local
currency and is used while entering the transaction. For example if any multinational
organization is operational in Pakistan and it uses any other currency than the local currency
of Pakistan then that currency will be termed as entered currency. Entered currency is
always converted to Local Currency when it is posted in the final accounts.

Currency Conversions
1.

Conversion: Foriegn Exchange (Forex) rates of the functional and entered currency. The
rates are defined in the table. This rate is used to convert the entered currency into the
functional currency. The naviagation to Rates in GL is Setup>Currencies>Rates>Dialy or
Historical

2.

Revaluation: It is a program that revaluates the entered currency into the current forex
rate. This program is run immediately before period closing.

3.

Translation: Used when consolidation is needed and transactions are done in multiple
currency.

Thats All :)

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