Multi-Currency Accounting

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Oracle General Ledger provides powerful and easy-to-use multi-currency capabilities to help manage your international transactions and operations. Oracle General Ledger’s versatile chart of accounts format and ‘Super Ledger’ architecture provide complete multi-currency support in a single ledger, without requiring a special currency segment in the chart of accounts. Accurate reporting, analysis, and on-line inquiry is readily available for all types of balances, including foreign-entered and translated balances.
Business Needs
With Oracle General Ledger you can:
•        Enter and maintain exchange rates on-line for foreign currency conversion, translation and revaluation
•        Define your own exchange rate types
•        Specify the functional currency you want for your company
•        Use different functional currencies for different companies in your organization
•        Enter foreign currency journals on-line, and automatically convert foreign currency amounts to your functional currency and review the results on-line
•        Revalue your assets and liabilities to reflect foreign currency period-end exchange rate fluctuations in accordance with FASB 52 (U.S.)
•        Automatically calculate the unrealized gain or loss due to exchange rate fluctuations
•        Translate your actual and budget account balances into other currencies using weighted-average rates as well as standard translation rates (period-end, average and historical rates) in accordance with FASB 52 (U.S.)
•        For companies in highly inflationary economies, translate your account balances into other currencies in accordance with FASB 8 (U.S.)
•        Consolidate companies that have different functional currencies
•        Report on translated account balances the same way you report functional currency amounts using standard accounting reports, financial statements and on-line inquiries
Major Features
Multiple Currency Definitions
You can easily define multiple currencies for accounting and financial reporting. With Oracle General Ledger, you specify the functional currency for your set of books (which includes one or more companies), and an unlimited number of other currencies for transactions and financial reporting. You can also use different functional currencies for different sets of books in your organization. Oracle General Ledger predefines all ISO (International Standard Organization) currencies.

Predefined currencies
User-Maintained Daily Exchange Rates
Maintain any type of daily exchange rate you require, including spot and corporate rates. With Oracle General Ledger, you maintain daily exchange rates for foreign currency conversion. Oracle General Ledger converts foreign currency amounts to your functional currency by multiplying the exchange rate you define by your foreign currency journal amount.
User-Maintained Period Exchange Rates
Maintain any type of period exchange rate you require, including period-end and average rates. Oracle General Ledger performs translation and revaluation in accordance with FASB 52 (U.S.) using the period exchange rates you maintain. And, for highly inflationary economies, Oracle General Ledger performs remeasurement in accordance with FASB 8 (U.S.) using the period exchange rates you maintain.
User-Maintained Historical Exchange Rates
Maintain historical exchange rates or amounts in Oracle General Ledger for foreign currency translation. Oracle General Ledger automatically translates your owners' equity account balances for the period you specify using the historical exchange rates or amounts you specify. And, in highly inflationary economies, Oracle General Ledger remeasures specific account balances using the historical exchange rates you maintain in accordance with FASB 8 (U.S.).
Weighted-Average Exchange Rates
Maintain weighted-average rates yourself or let Oracle General Ledger calculate them for you for foreign currency translation. You choose the specific account balances you want Oracle General Ledger to translate using weighted-average exchange rates instead of standard translation rates (period-end, average and historical rates) in accordance with FASB 8 (U.S.).
User-Maintained Exchange Rate Types
Oracle General Ledger automatically provides spot, corporate and user-defined conversion rate types, but you can define as many additional exchange rate types as you want. Maintain daily exchange rates for as many conversion types as you need, for each day of your accounting calendar.
Foreign Currency Conversion
Oracle General Ledger automatically converts your foreign currency journals into the functional currency of your set of books. Oracle General Ledger automatically performs conversion using the spot, corporate, or user-defined exchange rate you specify. And, Oracle General Ledger displays the results of this conversion on-line for your review.

Foreign currency conversion
Foreign Currency Revaluation - FASB 52 (U.S.)
Oracle General Ledger delivers an optimal revaluation process as standard product functionality, thereby continually ensuring FASB 52 compliance while promptly providing accurate data for analysis and reporting.  Accountants enjoy total revaluation flexibility, determining when and how to revalue accounts according to corporate needs.   
In Oracle General Ledger, revaluation is performed through a single form in which users designate an unrealized gain/loss account, then indicate the account or range of accounts to revalue. No additional set up is required.  Oracle’s multi-currency ‘Super Ledger’ architecture ensures immediate and accurate results.
As an international corporation, Oracle knows that daily revaluation is a common practice in Finance departments.  Therefore, revaluation can be performed as often as needed, with no limitations on journal effective dates or reversing effective dates.

Foreign currency revaluation
Foreign Currency Translation - FASB 52 (U.S.)
Translate your actual and budget account balances from the functional currency of your company into any other currency you want. Oracle General Ledger uses the historical, period-end and average rates you maintain in accordance with FASB 52 (U.S.). And, Oracle General Ledger automatically translates your owners' equity account balances using the historical exchange rates or amounts you specify.  Alternatively, translate your account balances using weighted-average rates which Oracle General Ledger automatically calculates for you when you use the Dual Currency feature. When you translate your account balances, Oracle General Ledger automatically posts translation adjustments to your Cumulative Translation Adjustment account.


Foreign currency translation
Foreign Currency Remeasurement - FASB 8 (U.S.)  
Remeasure account balances for companies in highly inflationary economies. Oracle General Ledger remeasures specific historical account balances from the functional currency for your company to any other currency you wish. And, Oracle General Ledger uses the historical, period-end and average exchange rates or weighted-average exchange rates you maintain in accordance with FASB 8 (U.S.).
Foreign Currency Reporting
You can produce reports in any currency. With Oracle General Ledger, produce trial balances in a foreign currency using translated balances. And, when you prepare financial statements using the Oracle General Ledger Financial Statement Generator, the reporting currency reflects your translated balances.
Multiple Reporting Currencies

Rounding Differences When you enter a foreign currency journal, the entered amounts may be in balance, but the converted amounts may be out of balance due to rounding errors. Prior to this release, currency conversion adjusted the largest amount in your journal by the resulting difference. Now, you can choose to post these small rounding differences to a Rounding Differences account defined in the Set of Books form. Daily Rates Form Now allows you to enter a range of dates for which you want to enter a single exchange rate. The date range can span multiple days or even periods. Therefore, you are no longer required to enter separate records to account for individual days that share the same conversion rate.
Value-Added Tax Reporting
Oracle General Ledger lets you enter and report on Value-Added Tax payments and receipts each period. Enter tax amounts, the type of tax collected or due, and invoice information when you enter journal entry lines. And, Oracle General Ledger provides a report showing the total amount of tax due and collected for a given period and tax type.