Multiple Reporting Currency Changes: GL Module 12 Release New Features

Multiple Reporting Currency Changes:  GL Module 12 Release New Features, AskHareesh blog for Oracle Apps

Multiple Reporting Currency Changes

Reporting sets of books from Release 11i will become subledger-level reporting currencies that are assigned to a primary ledger unless the MRC_DEBUG profile option is set to zero, in which case, the reporting set of books will become a journal-level reporting currency in Release 12.

Note: A subledger-level reporting currency maintains a currency representation of all subledger journals, GL journal entries, and balances for the primary ledger.

A journal-level reporting currency, which can be assigned to a primary ledger or secondary ledger, maintains a currency representation for GL journals and balances in the primary or secondary ledger.

Multiple Reporting Currency Sets of Books

Release 11i multiple reporting currency (MRC) primary sets of books and assigned reporting sets of books become primary ledgers with assigned reporting currencies in Release 12. Both the primary ledger and its reporting currencies will be included in the same accounting setup in Release 12. In addition, a data access set that includes the primary ledger and all of its assigned reporting currencies will automatically be created during the upgrade.

Reporting Sets of Books Assigned to Secondary Sets of Books

In Release 11i, reporting sets of books that are assigned to Payables and Receivables secondary sets of books will be upgraded as subledger level secondary ledgers that are assigned to the primary ledger.

Terminology Changes for Reporting Set of Books Options

The following discusses the terminology changes associated with the General Ledger
Reporting Currency Option:

Release 11i Option
Release 12 Option
Additional Details
Default Reporting
Default Rate Type
This option is displayed in the
Currency Translation Options
region of the Update
Reporting Currency page in
Release 12. This option
defaults from the Default
Reporting field of the Release
11GL Conversion Rules
form. If no GL Conversion
Rules were specified, then this
option defaults from the
Default Reporting field of the
first record in the Conversion
Options window.
First MRC Period
First Future Conversion
Period
This option is displayed in the
Data Conversion Initiation
region of the Update
Reporting Currency page in
Release 12.
GL Conversion Rules
Journal Source and Category
Conversion
This option is displayed in the
Journal Source and Category
Conversion region of the
Update Reporting Currency
page in Release 12.
inherit check box
Retain Transaction Rate Type
This option is displayed in the
Currency Translation Options
region of the Update
Reporting Currency page in
Release 12. This option
defaults from the Inherit
check box in the Release 11i
GL Conversion Rules form. If
no GL Conversion Rules were
specified, then this option
defaults from the Inherit
check box from the first
record in the Conversion
Options window.
No Rate Action
Missing Conversion Rate
This option is displayed in the
Currency Translation Options
region of the Update
Reporting Currency page in
Release 12.
MRC: Maximum Days to Roll
Forward Conversion Rate
profile option
Number of Days to Find the
Last Rate
This option is displayed in the
Currency Translation Options
region of the Update
Reporting Currency page in
Release 12.
GL/MRC Journals: Inherit the
Journal Creator from the
Primary Book's Journal
profile option
Retain Journal Creator from
Source Ledger
This option is a Yes/No drop
down box that is displayed in
the Journal Conversion Rules
region of the Update
Reporting Currency page in
Release 12.
Reporting Book Initialization
Option:
• Derive From Original
Transaction Rate
• Use Initialization Rate
Retain Original Conversion
Rate Type:
• Yes
• No
This option is a Yes/No drop
down box that is displayed in
the Data Conversion
Initialization region of the
Update Reporting Currency
page in Release 12:
• If the Release 11setting
was Derive From
Original Transaction
Rate, then the Release 12
Option will be set to Yes.
• If the Release 11setting
was Use Initialization
Rate, then the Release 12
option will be set to No.
If Use Initialization Rate
specified, the Conversion
Date
Historical Conversion Rate
Date
This option is displayed in the
Historical Conversion region
of the Update Reporting
Currency page in Release 12.
If Use Initialization Rate
specified, the Conversion
Type
Historical Conversion Rate
Type
This option is displayed in the
Historical Conversion region
of the Update Reporting
Currency page in Release 12.

 Deleted Profile Option

The Release 11i profile option called GL/MRC: Post Reporting Journals Automatically has been removed in Release 12. By default, all reporting currency journals will be automatically posted when posted in the source ledger.

Synchronized Options for Primary and Reporting Sets of Books

In Release 11i, users could change settings for certain options on a primary set of books independently of its reporting set of books. The upgrade will preserve the Release 11i settings, but in Release 12 these options cannot be manually updated for reporting currencies because the reporting currency will inherit its settings from its source ledger.
If you modify any of the ledger options for the source ledger after the upgrade, the settings on the reporting currency will automatically be changed to be synchronized with the source ledger. Be aware that you may not be able to revert to certain Release 11 i configurations once options are changed. The following summarizes all of the ledger options that will be automatically changed for the reporting currency if updated in the source ledger in Release 12:
  • Number of Future Enterable Periods
  • Rounding Differences Account
  • Reserve for Encumbrance Account
  • Retained Earnings Account
  • Intracompany Balancing Rules
  • Enable Journal Entry Tax
  • Journal Reversal Criteria Set
  • Require Budget Journals option
  • Period End Rate Type
  • Period Average Rate Type
  • Translation Adjustment Account
  • Secondary Tracking Segment option (once enabled for a ledger, the Track by Secondary Segment option cannot be disabled)
  • Descriptive Flexfields
  • Suspense Account
Reporting currencies in Release 12 will inherit the primary ledger's suspense posting option. If suspense posting is enabled for the primary set of books and not enabled in the reporting set of books in Release 11i, then in Release 12, the reporting currency will have suspense posting enabled and use the same suspense account as the primary ledger.

If suspense posting is not enabled for the primary set of books but enabled in the reporting set of books in Release 11i, then in Release 12, the reporting currency will also not have suspense posting enabled to be synchronized with its source ledger.

Different Average Balance Settings for Primary and Reporting Sets of Books

In Release 11i, users can set the Average Balances or Average Balance Consolidation options for the primary set of books independently of the reporting set of books. In Release 12, users can only set these options for the ledger and the reporting currency will inherit the attribute from its source ledger. For upgrade cases, Oracle will preserve the Release 11i configurations.

Note: If average balances is disabled in the primary ledger, but enabled for its reporting currency, General Ledger Posting will terminate with an error when posting subsequent journals. Users will need to disable the conversion of the reporting currency that has Average Balances enabled to successfully post journals in the primary ledger.

Single-Reporting Set of Books Assigned to Multiple Primary Sets of Books

If you currently have multiple primary sets of books linked to one reporting set of books in Release 11i, this configuration will be upgraded to multiple primary ledgers that share the same reporting currency. You will not, however, be able to use some of the new Release 12 features using this configuration. For example, you will not be able to query accounting setups by the name of the upgraded reporting currency; you will only be able to query accounting setups by the name of the primary ledger. Currency translation in Release 12 is another feature that may not behave as intended with this setup.

If multiple primary ledgers are linked to a single reporting currency, then the reporting currency will synchronize its own settings to be synchronized with the primary ledger that was most recently updated. For example, if you have different settings for suspense posting where one primary ledger has it enabled and another does not, once you update one of the primary ledgers, the shared reporting currency will inherit the settings from the primary ledger that was last updated.

Be aware that users who had access to the reporting set of books in Release 11i will have access to all of the reporting currencies for a single primary ledger. In addition, users who had access to the primary ledger will now have access to the reporting currency as well. This is required to prevent posting errors. In Release 12, the journals for both the
primary ledger and its reporting currencies will be grouped in the same journal batch. In order to successfully post the batch, the user who initiates the posting process must have access to both the primary ledger and its reporting currencies.

Reporting Set of Books Not Assigned to a Primary Set of Books

Accounting Setup Manager does not support unattached reporting set of books that are not assigned to a source ledger. In Release 11i, if you had reporting sets of books that
were not assigned to a primary set of books, then in Release 12, those reporting sets of books will be upgraded to primary ledgers. You can continue to use the upgraded primary ledger for journal processing.

If you do not want these unattached reporting sets of books to be upgraded to primary ledgers, then before the upgrade, you should assign the reporting set of books to a primary set of books using the Assign Reporting Set of Books form in Release 11i.

Reporting Sets of Books with Disabled Relationships to a Primary Set of Books

In Release 11i, if you disabled a reporting set of books' relationship to its primary set of books, that reporting set of books will still be upgraded as a disabled reporting currency assigned to the upgraded primary ledger. This will ensure that historical information is retained.

Reporting Sets of Books with Translated Currencies

In Release 11i, if you performed currency translation in a reporting set of books, then the translated balances will upgrade to balance-level-reporting currencies in Release 12. After upgrade, you can continue to run translation for these balance-level-reporting currencies, but you will not be able to translate to new currencies. Also, you will not be able to update the currency translation options for these balance-level-reporting currencies, such as the period-end rate type, period-average rate type, and
cumulative-translation adjustment account.

Reporting Set of Books with Inconsistent Journal Conversion Rules

In Release 11i, the journal conversion rules defined for a reporting set of books provided instructions to the General Ledger Posting program on converting specific journal sources to a reporting currency. Typically, journals from MRC-enabled subledger sources should not be converted using journal conversion rules because they would automatically be converted at the subledger level. Having MRC-enabled subledger sources also converted using journal conversion rules may result in double counting; once at the subledger level and again at the general ledger level.

Prior to the upgrade, you should use the Assign Reporting Set of Books form to verify that the journal conversion rules are correctly defined. The optional Preupgrade Diagnosis Program will identify all sets of books that have inconsistent journal conversion rules defined.

Reporting Set of Books with Inconsistent Setup across Products or Operating Units

Users may have reporting sets of books with inconsistent setup configurations between different products and/or operating units in Release 11i. An example of this is an AR book with three operating units enabled and an AP book with only two operating units
enabled. This type of configuration is not supported in Release 12. In Release 12 reporting currency conversion options are synchronized across all products and operating units for that reporting currency.

If you wish to modify these configurations prior to the upgrade, refer to the optional preupgrade diagnosis program discussed in the Release 12 Upgrade Guide, Appendix B. Otherwise, the reporting sets of books will upgrade as-is, and you will not be able to update the setup options for a specific product and/or operating unit after the upgrade.

Reporting Set of Books with Incomplete Setup for Products or Operating Units

Users may have reporting sets of books enabled only for a partial set of products and/or operating units in Release 11i. All of the sets of books with missing setups are listed in the optional preupgrade diagnostic program discussed in the Oracle Applications
Upgrade Guide: Release 11i to Release 12.

Refer to the Release 11i Multiple Reporting Currencies User Manual to complete the setup, otherwise each set of books will upgrade as-is, and users will not be able to define the setup for a specific product and/or operating unit after the upgrade. For those reporting sets of books not enabled for General Ledger, but enabled for other subledger products, the upgrade will automatically create a default accounting setup for General Ledger.

Move/Merge

In Release 11i, users needed to submit a separate move/merge request and a separate move/merge reversal for a primary set of books and each of its reporting sets of books.

In Release 12, source ledgers and their assigned reporting currencies are more tightly integrated and processing has been streamlined. In Release 12, if users submit a move/merge request for the source ledger, the move/merge request will automatically be submitted for all of its assigned reporting currencies. This also applies to move/merge reversals. If users subsequently reverse the move/merge request that was submitted in Release 12, then the reversal will apply to both the source ledger and all of its assigned reporting currencies. Users will not be able to submit separate move/merge requests or move/merge reversals for the source ledger or its reporting currency.

Note: If a move/merge request that was submitted in Release 11i is later reversed after upgrading to Release 12, then the reversal will only affect the ledger or reporting currency that submitted the original move/merge request. For example, if the original move/merge request was submitted by the primary set of books, then reversing it in Release 12 will only affect the primary ledger. If users want to keep the reporting currencies synchronized with the primary ledger after the move/merge reversal, they will need to adjust reporting currency balances by entering manual journal entries.

Note: The request names of upgraded move/merge requests that have the same name within the same chart of accounts will be appended with the Ledger ID. 



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