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Foreign Currency SOB setup [message #255146] Mon, 30 July 2007 16:12 Go to next message
ljpviper
Messages: 11
Registered: April 2006
Junior Member
What would be the best approach to setup a SOB/SOBS for the following currency situation.

Company needs to create journals in both EUR and GBP. Functional currency of CONSOLIDATION BOOK is USD.

Need to be able to convert EUR to GBP for reporting purposes.

I know we can create an SOB with functional of USD and enter multiple currencies. How can we translate the EUR entries to GBP.




Thanks,

Larry
Re: Foreign Currency SOB setup [message #255236 is a reply to message #255146] Tue, 31 July 2007 02:22 Go to previous messageGo to next message
singseeman
Messages: 4
Registered: July 2007
Location: india
Junior Member

If this the case you can opt for MRC (multipel reporting currencies)
in this what ever the transaction you are going to do in your parent set of books, will be registered in foreign currecy books,

in your case you can define USD set of books as primary and other two sob's as reporting and attach those books to the primary sob in financial/books/difine/ assign ..........

this is process of trasaction level transfers,think it will suits your case,

regards,

muthu
Re: Foreign Currency SOB setup [message #255277 is a reply to message #255146] Tue, 31 July 2007 04:50 Go to previous messageGo to next message
David.K.Dickson
Messages: 413
Registered: October 2005
Location: Surrey, England
Senior Member
I am sorry, but I am not clear about your requirements, so I will state some assumptions before suggesting a possible solution.

You have an organisation which is based in UK and has a legal requirement to produce accounts in GBP. You buy and sell goods in EUR (as well as GBP), but you do not need to produce a full set of accounts in EUR. You need to report to your parent company in USD.

If the above assumptions are correct, then I suggest that you set up your main SOB with a Functional Currency of GBP and set up a Reporting SOB with a Currency of USD. Enable GBP, EUR and (any other currencies you do business in) in your main SOB. Enable only USD in your Reporting SOB and link it to your main SOB. Define exchange rates between EUR and GBP, then when you enter Invoices (Payable or Receivable) or Journals in EUR, the GL system will automatically convert them to GBP.

If the above assumptions are incorrect, or you simply want to understand more, please refer to the chapter called "Multi–Currency" in the "Oracle General Ledger User Guide" which you can download from http://www.oracle.com/technology/documentation/applications.html

Cool HTH

David.

[Updated on: Tue, 31 July 2007 04:53]

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Re: Foreign Currency SOB setup [message #255350 is a reply to message #255277] Tue, 31 July 2007 09:00 Go to previous messageGo to next message
ljpviper
Messages: 11
Registered: April 2006
Junior Member

Thank you for the response, David.

Our present setup is as follows:

We opened an office in the UK last year. All AP/GL transactions are in GBP.

The SOB was setup with a functional of USD(this may have to change now due to the need of EUR). Naturally all transactions are entered in GBP then converted to USD. Then consolidated to the CON SOB(USD functional)

We now have the need for EUR currency. The issue is, we have to translate the EUR to GBP for reporting purposes only.

I believe, based on your statement the correct setup would be to enter all GBP and EUR into a SOB with GBP functional, then translate to USD to consolidate
to the USD SOB


I am sorry for the confusion.
Re: Foreign Currency SOB setup [message #255394 is a reply to message #255350] Tue, 31 July 2007 12:05 Go to previous messageGo to next message
David.K.Dickson
Messages: 413
Registered: October 2005
Location: Surrey, England
Senior Member
Ah, you didn't say that you had an existing SOB! That makes a difference.

If you were starting from scratch, then I would stick with my previous suggestion. Or if you were considering a major upgrade, you might consider implementing new SOB's as part of that exercise.

Since you have a year's worth of data, you might instead want to look at how you might manage by modifying your existing setup. If you were simply to enable EUR in your existing USD SOB, the EUR transactions would be converted to USD just like the GBP transactions, however you would no longer have your GBP totals for UK Statutory reporting. To get around this, you could set up a Reporting SOB in GBP and link that to the USD SOB. (Any comments, anybody?)

However, do try this out in a TEST environment before going anywhere near a PRODUCTION environment.

Cool HTH

David.
Re: Foreign Currency SOB setup [message #255397 is a reply to message #255394] Tue, 31 July 2007 12:12 Go to previous message
ljpviper
Messages: 11
Registered: April 2006
Junior Member
David,

Thank you, you read my mind. I set up a reporting SOB(GBP) and defined it to the GBP/USD SOB.

I was able to successfully consolidate. I have not checked the balances yet, but will this afternoon.

I was able to find some decent documentation on Metalink about MRC.

Of course in Test, I would not dare implement this in production without full sign off from the Accountants after they verify the correct balances.

Appreaciate the help, will let you know how it goes. We are a US company expanding International, so its a learning curve for everyone here.

Thanks,

Larry
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