Multi-reporting Currency

What is MRC?

Multiple Report Currency (MRC) is a feature that allows for transactions to be recorded in more than one set of books/functional currency by way of assigning reporting set of books to an operating (transactional) set of books.

Why Use MRC?

MRC is used when the need to maintain ledgers in different currencies for reporting purposes is identified.

Why use an alternative approach to MRC?

Most clients have deferred from using MRC due to the overhead associated with maintaining it and/or the limitation of 8 reporting books to one set of books. Also, depending upon the Oracle release level, MRC may not be available.

Viable Alternative to MRC

Baytree has developed a module to “synch” up the reporting ledgers with the operating (transactional) set of book(s). A functional overview of this process is summarized below:

• An operating (transactional) book(s) and reporting books(s) are defined. The reporting book(s) are assigned to the operating (transactional) book(s). These books must share the same calendar and chart of accounts but will have different functional currencies.

• Multiple currency transactions recorded in subledgers are processed in the usual manner to the operating (transactional) book.

• Transactions can be excluded from passing to the reporting books by journal source.

• Exchange rates must be kept current. The primary reason a journal will not pass to the reporting books is because the exchange rate is not available.

• Transactions that pass to the reporting books are flagged as processed to avoid them from being passed an additional time.

• The process reviews the original currency of the transaction prior to movement to the reporting book. Below is an example of transactions where the transaction book is in USD and the reporting book is MXP. The MXP/USD rate is 10:1.

• Reports are available to ensure that the ledgers are in “synch”.

Benefits to Viable Alternative

• There is no limit to the number of reporting books assigned to an operating (transactional) book.

• It does not matter what Oracle release is being used

• The client determines which transactions move to the reporting books. This can be determined by company code or some other factor.

• The client decides whether certain transactions should be excluded from passing to the reporting books. Frequently, revaluation, translation, asset journals and gain/loss transactions are excluded from the transfer.

• The Baytree alternative process uses standard Oracle functionality. It is a standard GL interface to the reporting book. The process populates the GL_INTERFACE table and initiates journal import. The user reviews and posts the journal(s) in the reporting books.

• The process to transfer transactions to the reporting books can be executed multiple times for a given period. This allows the local country time to review data prior to period end.

Asset Integration

Since Oracle Assets is not multi-org specific and clients frequently have a need for specialized asset reporting for overseas locations, Baytree Associates can assist in automating a link between the overseas asset book from payables.