Foreign Currency Recurring Journals
Within release 11i of Oracle General Ledger you were able to define recurring journals using just the functional currency or the STAT currency. Now within R12, you can define and create recurring journals using foreign currencies that are relevant to your ledgers and reporting currencies.
This is particularly useful if your business has a requirement to create ledger transactions that are recurring in nature but are required in a foreign currency. For example, consider the situation where a subsidiary company that operates within a different country to that of its parent has a monetary transfer arrangement for funding on a regular basis. The subsidiary requires this funding transaction to be processed in a different currency to that of the parent. The subsidiary can now generate a recurring entry to reflect the funding transfer currency.
Recurring journal formula batches can also be created for single or multiple ledgers that have the same chart of accounts, calendar, and period type as the data access set of your current responsibility. If you define a foreign currency recurring journal, you must also add a conversion type. This information will be used to convert the entered foreign currency amount to the functional accounted amount within the journal. The screen shots below show the use of a foreign currency (EUR) during the definition of a recurring journal formula and the resulting journal assuming a corporate rate of EUR > GBP of 1.25.
The use of foreign currency recurring journals will require exchange rates to be set up between the currency used within the formula and the functional currency of the ledger. Most finance departments will have a strategy of defining daily rates for the current month. The generation of recurring journals will need to occur following the creation of the exchange rates. You can schedule the generation of recurring journals as and when they are required.
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