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Oracle Fusion FX

The document outlines the processes for managing foreign currency conversion, revaluation, and translation in financial reporting. It details steps for setting up conversion rates, performing revaluations based on exchange rate changes, and translating balances into reporting currencies. The document emphasizes the importance of validating rates and managing unrealized gains or losses through appropriate journal entries and adjustments.

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8 views8 pages

Oracle Fusion FX

The document outlines the processes for managing foreign currency conversion, revaluation, and translation in financial reporting. It details steps for setting up conversion rates, performing revaluations based on exchange rate changes, and translating balances into reporting currencies. The document emphasizes the importance of validating rates and managing unrealized gains or losses through appropriate journal entries and adjustments.

Uploaded by

m.husien2030
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FOREIGN CURRENCIES

( CONVRSION RATE & REVALUATION & TRANSLATION)

Prepared By: Salah Eldin Essam


Oracle Financial Consultant
1- Conversion
1- Setup and Maintanance > Financial Reporting Structure > Manage Conversion Rate
Types >

2- Create Rate Type > Name & Description & Enable “ Enforce Inverse Relationship” &
Save >> Go to “Daily Rates” > Press “ Create in Spreadsheet”

3- After Downloded Spreadsheet > Open it > Press Yes to Connecting to Server > Fill
cells > Submit > in Record Status : Raw Inserted Successfully.
Always ensure the status changes from Raw to Validated before relying on the rate
in transactions.
4- Go to check on your Rate :

5- Now You can create a Journals with Forgin Currency and Automaticlly Rate Applied :

- After we posted the journal entry, at the end of the month I noticed that the exchange
rate became 13 , while when I originally recorded the entry it was 12
So in this case, I have an unrealized gain of 1,000. To handle this and remeasure the
foreign currency balance, I need to do what’s called a revaluation.
2- Revaluation

In the new month, the SAR exchange rate Uped to 13 , Based on that, I need to perform a
revaluation to update the balance and record the new exchange rate of 13.

- Then Click on Save and Close


- Once I click Generate, I need to select the ledger, the revaluation created in the
previous step, and the accounting period, then submit the process.

- Once the revaluation request is succeeded, I navigate to the Accounting General


Dashboard, open Manage Journals, click Search, and the revaluation entries appear.

- The Revaluation journal was generated using the new exchange rate of 13, and the system
automatically calculated the remeasurement difference and posted it to the Unrealized
Gain/Loss account defined in the revaluation setup.
3- Translation
- Translation means converting existing balances from one currency to another.

- First Step from > Specify Ledger Option > Define your Rate > The first one is End Period Rate
Type Default > For Period Default, I enter the Cumulative Translation Adjustment (CTA)
account, and I also select its Average Rate Type

- “” Translation does not generate unrealized gains or losses, but posts the difference to the CTA
account. “”

- we navigate to Manage Reporting Currencies and create a reporting currency for each currency
we want to enable for currency reporting.
- Once this is set up, when running the Trial Balance, we select the ledger set with SAR as the
reporting currency. The balance will be displayed as Total instead of Entered.
- This behavior starts appearing immediately after the reporting currency is created.
- Go to General Accounting Dashboard to Translate Balance request and select Target
Currency.

Then go to Monitor Processes > and Press Schedule New Process > to seeing your
Balances with SAR Currency

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