ORACLE APPLICATIONS ARCHIVES

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ON
GENERAL LEDGER



Change Functional Currency

From: Jakubowsky, Sandra [SMTP:JAKUSR@comfort.com]
Sent: Thursday, October 14, 1999 11:17 PM
To: Multiple recipients of list
Subject: Foreign Currency

We currently have multiple companies using the Functional Currency of USD and have only processed transactions in USD. Two companies would like to start transacting in CAN. Please offer any insight on possible set-up and issues that we need to consider.

Thank you.


Date: Fri, 15 Oct 1999 01:27:42 -0400
From: Steve Harper steve.harper@pragmatek.com
To: "'oraapps-l@cpa.qc.ca'" oraapps-l@cpa.qc.ca
Subject: RE: Foreign Currency

Sandra,

It depends on whether the companies want to do all of their bookkeeping in CAN (perhaps necessitating a separate set of books or a separate Reporting Currency (V11 only) or whether they only want to do some of their transactions in CAN (simply being treated as a foreign currency transaction). If the case is the latter, you need to determine whether the volume of transactions is enough to justify the work of monitoring and valuing exchange rates on a daily basis or whether you can deal with monthly monetary valuations.

Oracle offers the following capabilities:

1) Different set of books -- Basically you want to choose this option if you want most (if not all) of your transactions being conducted in a different functional currency. Key question: What currency do you want to use for your Income Statement and Balance Sheet.

2) Different currency for any specific transaction. Oracle provides an easy way to select a different currency for any given transaction with the translation into the functional currency based on spot, user-defined, or corporate (average monthly) rates.

3) Multiple Reporting Currency -- Requires you to book each transaction twice -- once in the functional currency and once in the reporting currency.

Bottom line -- how much of the activity is in CAN and how much is in USD. If the majority is CAN, consider options 1 or 3, otherwise consider option 2.

Steve Harper
PRAGMATEK Consulting Group, Ltd.


Date: Fri, 15 Oct 1999 22:01:05 PDT
From: "ravi chandran" johnny_ravi@hotmail.com
To: oraapps-l@cpa.qc.ca
Subject: RE: Foreign Currency

Sandra,

Release 11 has the MRC feature. By defining any number of secondary set of books with different currencies you can get reports accordingly. In your case you can define your primary books in USD and secondary books in CAD & this will be enable you to get the reports in the manner you desire. Choosing CAD or USD in primary set of books depends on your operation. You have to specify the exchange rate applicable for conversion whether it is corporate, user etc.

Ravi


Date: Sun, 17 Oct 1999 19:39:00 -0700
From: "Mohan Iyer" miyer@fortuna.com
To: oraapps-l@cpa.qc.ca
Subject: RE: Foreign Currency

You will need to define different Sets of Books for those who want to perfomr transactions in CAD.

Then for reporting purposes you will have to translate and consolidate the before you can get reporting for all your companies in USD.

Thanks,
Mohan Iyer
Financials Consultant
Sunnyvale, CA



Interface Table mapping

From: Bill Keenan [SMTP:billek@ccai.net]
Sent: Friday, 15 October 1999 14:38
To: Multiple recipients of list
Subject: GL_INTERFACE Reference Columns

Hi All,

I am trying to map the Reference Columns in the GL_INTERFACE Table to the actual fields in the General Ledger they are associated with, and am not sure where to look. I have the following columns mapped, but forget where I got this information:

Reference1 = Batch Name
Reference4 = Journal Name

If anyone could send a list of the references and which fields they map to, or let me know where I can find this information, I would very much appreciate it.

Thank you,
Bill


Date: Sat, 16 Oct 1999 11:40:33 -0400
From: Ken.Eaton@dankasi.com
To: oraapps-l@cpa.qc.ca
Subject: RE: GL_INTERFACE Reference Columns

Here's some information we received in a reply to an open TAR:

Opinions expressed here are my own and as such
are not necessarily those of Oracle Corporatio

AP to GL Posting : references (Please click here)



MRC Reports - currencies mixed up

From: oraapps-l@cpa.qc.ca [mailto:oraapps-l@cpa.qc.ca]On Behalf Of Larry Scheurich
Sent: Thursday, October 14, 1999 8:00 PM
To: Multiple recipients of list
Subject: MRC question

Folks,

I have been experimenting with MRC on the Vision demo database. I am using the MRC Reporting set of books to view transactions. When I run inquiries, I was expecting to see the amounts in the currency of the set of books (reporting) that I'm in. However, they show up in the currency of the primary set of books. I opened the currency folder to see the translated amounts, but they are showing up blank (I was expecting to see translated amounts). Can anyone point me in the right direction to see the translated amounts? I know it's something I'm doing wrong.... :-)


Date: Sun, 17 Oct 1999 19:38:57 -0700
From: "Mohan Iyer" miyer@fortuna.com
To: oraapps-l@cpa.qc.ca
Subject: RE: MRC question

Seems that something is fundamentally wrong with the setup.

Hae you gone through the steps of defining Reporting set of books, assigning it to the Primary and then defining conversion options. It is also very strange that you see the transactions in the same currency as you have entered them. This might also be because of the incorrect Responsibility.

I have been involved with an MRC implementation that is live, and can help you.

Can you let me know what are the setup steps you are using??

Have you defined your own set of books or are you using the ones defined in the Vision Database?

Let me know and I probably can help.

Thanks,
Mohan Iyer
Financials Consultant
Sunnyvale, CA


Date: Sun, 17 Oct 1999 21:50:10 PDT
From: "ravi chandran" johnny_ravi@hotmail.com
To: oraapps-l@cpa.qc.ca
Subject: RE: MRC question

Hi!

you have not assigned the secondary set of books to the primary one and defined the exchange rates. check in the set of books option whether the secondary set of books is assigned.

Ravi



Change in Calendar - Query 2

Date: Tue, 19 Oct 1999 11:58:44 -0400
From: "Nandakumar" nkumar@se-tech.com
To: "Mail List" oraapps-l@cpa.qc.ca
Subject: GL calendar

We are currently on a calendar that begins Nov 1 and ends Oct 31. we plan to move to calendar year (jan-Dec) in 2000 and I wanted to understand how best to handle the months of Nov/Dec of the current calendar year. I was thinking of adjusting periods but these apply only to GL and no journals from Inventory etc can be imported

Any suggestions would be appreciated

Thanks in advance
Nand


Date: Tue, 19 Oct 1999 18:47:24 +0200
From: "Sridhar RAO" sridhar_rao@salomon-sports.com
To: oraapps-l@cpa.qc.ca
Subject: Re: GL calendar

Hi,

Between 1st November and 31st December 1999 define as many periods as allowed in the calendar. If you have defined a maximum of 12 periods then probably you can define the periods as follows :

Period Num    Period Name        Start Date to End Date
----------    ------------              ---------------------
1                    NOV-99           01-NOV-99 to 30-NOV-99
2                    DEC-99           01-DEC-99 to 21-DEC-99
3                    DEC22-99           22-DEC-99 to 22-DEC-99
4                    DEC23-99           23-DEC-99 to 23-DEC-99
5                    DEC24-99           24-DEC-99 to 24-DEC-99
6                    DEC25-99           25-DEC-99 to 25-DEC-99
7                    DEC26-99           26-DEC-99 to 26-DEC-99
8                    DEC27-99           27-DEC-99 to 27-DEC-99
9                    DEC28-99           28-DEC-99 to 28-DEC-99
10                    DEC29-99           29-DEC-99 to 29-DEC-99
11                    DEC30-99           30-DEC-99 to 30-DEC-99
12                    DEC31-99           31-DEC-99 to 31-DEC-99 -- Adjusting Period also
                                                                                                    (probably)

There are some dummy periods defined from 22nd December to 31st December. All the journal entries from 22nd December to 31st December should be entered under the period DEC-99.

You can use the descriptive flexfield in the screen 'Define Calendar'. In this descriptive flexfiled one attribute can be used to indicate that the periodis dummy period. Null value in this attribute indicates that it is a normal period.

Even if there are some journal entries in the periods between 22nd December and 31st December they can be handled, if you are not using standard GL reports, by putting a check on the attribute. If the journal entry is in a dummy period then consider it as in DEC-99.

If you can give the calendar information probably we can think of a better method to handle this.

- sridhar


Date: Wed, 29 Dec 1999 13:48:07 -0500
From: "Nandakumar" nkumar@se-tech.com
To: "Mail List" oraapps-l@cpa.qc.ca
Cc: sridhar_rao@salomon-sports.com
Subject: GL calendar (contd.)

Thank you for your mail. My system is live and currently the period type month = 12 periods. My FY 1999 ends on Oct 28th 1999

Earlier we were planning to continue with the current calendar format (4/4/5)and end FY 2000 in Oct 2000. Now we feel that we will have 4/4/5 beginning Jan 1, 2000. So that leaves a couple of days in Oct and Nov-Dec in limbo. We plan a year ending (FY 1999) in October 1999 and another year end in Dec 1999 (calendar)to close out these two months

As per your suggestion I should:
(a) Create 12 {months} between Oct & Dec (64 days)
(b) Prefix it with identifier and open them
(c) The year would be 2000
(b) also create Jan-Dec for calendar year 2000 with correct dates. Only here year will be 2001 but name will be Jan-00, Feb-00 so that users do not get confused

I would like to know any drawbacks etc. in terms of user use, standard reporting etc, that you may be aware of

Thanks
Nand



Revaluation, any connection to sub-ledgers

Date: Sun, 17 Oct 1999 11:18:05 IST
From: "Mark Liberman" liberman_mark@hotmail.com
To: OraApps-L@cpa.qc.ca
Subject: GL: Revaluation, any connection to sub-ledgers ?

The GL allows to reevaluate accounts that have transactions in foreign currency to the functional currency. We have a situation where some of the supplier's & customer's activity is in foreign currency, and this activity goes to separate GL accounts. We would like to reevaluate those GL accounts and on the same time reevaluate their balances in the sub-ledgers, to keep them reconciled to GL. How's that can be done ?

Thanks,
Mark


Date: Mon, 18 Oct 1999 14:10:49 -0500
From: "Puchniak, Stan" Stan_Puchniak@standardaero.ca
Subject: RE: GL: Revaluation, any connection to sub-ledgers ?

Hello Mark,
I do not understand your request. If you change the balance a customer owes you, are they going to pay this new amount? It is likely that the customer will only pay the amount they have been invoiced. You should have different posting accounts for the different AR currencies. This facilitates the revaluation of these accounts based on a month end rate. This action is required by most accounting bodies that I am aware of. For reconciliation purposes, we always reconcile in the functional currency. We invoice in CAD, USD, GBP and NLG.

I hope this helps.
Stan


Date: Wed, 20 Oct 1999 12:10:16 IST
From: "Mark Liberman" liberman_mark@hotmail.com
To: oraapps-l@cpa.qc.ca
Cc: Stan_Puchniak@standardaero.ca
Subject: RE: GL: Revaluation, any connection to sub-ledgers ?

Hi Stan,

Thank you for your reply. I'll try to clarify my question with an example:

functional currency CAD.
Customer invoiced 80 USD
System translated to 100 CAD
Invoice interfaced to GL

At month end I run revaluation in GL
Lets say 80 USD = 105 CAD (That's the actual customer's debt in the functional currency)
But in AR the customer's balance is still 80 USD = 100 CAD
So, If I try to reconcile GL/AR in the functional currency
- there will be a difference !
But further more, the customer's debt in AR (in the functional currency) is not accurate !

Thanks,
Mark


Date: Wed, 20 Oct 1999 08:10:41 -0500
From: "Puchniak, Stan" Stan_Puchniak@standardaero.ca
Subject: RE: GL: Revaluation, any connection to sub-ledgers ?

Hello Mark,
The information you provided is consistent with your functional currency being USD and not CAD. The following should clarify the way Oracle will treat this transaction.

Assume rate at the time of the transaction is 0.65 USD to CAD; and, month end revaluation rate is 0.70 USD to CAD.

Transaction of $100 USD is $153.8462 CAD (1/0.65*100)

The revaluation of the GL balance is required to restate the month end balance of non-functional GL accounts on the balance sheet (in this example) in the functional currency. The functional balance of the transaction should never change. You could even verify this by reconciling the "entered" balance of the USD receivable account in the GL to the ATB in USD. This should reconcile to the USD Aged Trial Balance from the subledger. We use the Aged Trial Balance - 7 Buckets - By account. This shows you subledger balances by receivable accounting flexfield.

Revaluation of $153.8462 CAD is $107.6923 USD (153.8462*0.65)

I know that this works for us. Our functional currency is USD and we invoice in USD, CAD, AUD, NLG and GBP.

I hope this provides some clarification.
Cheers,
Stan


Date: Wed, 20 Oct 1999 13:47:18 -0400
From: sbradley@sprynet.com
To: oraapps-l@cpa.qc.ca
Subject: RE: GL: Revaluation, any connection to sub-ledgers ?

There are two ways for a "generic" financial system to perform revaluations related to AR (and AP) subsidiary balances. One is to analyze all open items in the subsidiary system, adjust the detail and pass this information on to the GL in JE format. The other is to analyze the summarized functional and entered balances for each currency in the GL and adjust the GL functional balance only. Oracle does the later which is a faster process.

When you look at the 2 methods and think about what is happening, you will see there really isn't a need to change the detail receivable balance at the invoice level. The reason is the new (revalued) receivable amount will not be used in the receipt process to determine realized gain/loss. Realized gain/loss is based upon the original functional receivable amount and the deposit date exchange rate. The restated receivable amount resulting from the revaluation adjustment is reversed in the GL and thereby offsets the current period realized gain/loss. If you are trying to reconcile AR to GL then run the Customer Balance Revaluation Report (R11). I'm not sure if this exists in 10.7 or if it has been back ported.

Respectfully,
Steve Bradley, CPA
OASIS Consulting Group, Inc.
Office 404-352-8387
Fax 503-218-9747
Pager 888-912-2569


Date: Wed, 20 Oct 1999 20:34:00 -0700
From: "Mohan Iyer" miyer@fortuna.com
To: oraapps-l@cpa.qc.ca
Subject: RE: GL: Revaluation, any connection to sub-ledgers ?

Hi Mark,

Here is my take on the Revaluation piece.

The AR Balance when it was transferred was correct in your functional currency.

However, when you revalue the account to which it was posted it will revalue the balance in that account to the correct functional amount based on the rate you specify it to use to revaluate. This would show up in your financial statements as a true picture of your receivables amount (balance).

However, when the payment is made it will - for an example -say that it is paid in the transaction currency. NOw when you post that to GL there may be a difference in the amount that is going to be posted to the account and it may either fall short or be more!

In this case the Gain/Loss account will get effected by the difference because the change in the functional amount was due to the difference in the Exchange Rate.

This is accepted accounting practice and the Gain/Loss is accounted as such and should not be a problem.

In your example you are trying to ascertain the debt of the Customer in what currency - probably you should do it in Transaction Currency and that is what most of the AR reports would give you output in.

Thanks,
Mohan Iyer
Financials Consultant
Sunnyvale, CA


Date: Thu, 21 Oct 1999 08:39:40 -0500
From: "Puchniak, Stan" Stan_Puchniak@standardaero.ca
To: "'Mark Liberman'" liberman_mark@hotmail.com
Subject: RE: GL: Revaluation, any connection to sub-ledgers ?

Hello again Mark,
Unfortunately, I believe that I have been misleading you. The example that I provided is applicable to "Translation" and not "Revaluation". We perform both of these processes here and I was mixing one with the other. I apologize for any confusion this may have caused.

Your assessment of the revaluation is accurate. The revaluation process creates a reversing journal entry in the general ledger. Probably the easiest way to perform a reconciliation of the account is to still reconcile in your functional currency. I say this because my experience is that occasionally a transaction in an incorrect currency is posted to a receivable account used for a different currency. To reconcile the account you could do the following:

ATB (functional) 1000

GL (revaluation) 1032
Less: revaluation -32
Adjusted GL 1000

I hope this provides some clarification.
Sincerely,
Stan



Deleting Journals

From: cshay@csc.com [SMTP:cshay@csc.com]
Sent: Wednesday, October 27, 1999 3:57 PM
To: Multiple recipients of list
Subject: Deleting Journals

Does anyone know how to delete imported, unposted journals in Oracle GL. We are on Rel 11.


Date: Wed, 27 Oct 1999 18:49:22 -0500
From: "Brower, Robert B. (Bruce)" BrowerRB@bv.com
To: "'oraapps-l@cpa.qc.ca'" oraapps-l@cpa.qc.ca
Subject: RE: Deleting Journals

In GL, to delete an entire batch of journals, do the following:
* Navigator/Set Up/Journal/Sources
* Select type of journal (for example, Receivables)
* Uncheck the "freeze journals" check box
* Save
Then,
* Navigator/Journals/Enter
* Find the batch (e.g., AR batch) you want to delete, Go to Enter Journals window
* Select the unposted (AR) batch to be deleted
* From the Edit menu, select "Delete Record" and select Batch in the small window
* Save
Then, recheck the "freeze journals" check box and save your work.