Multiple Reporting Currencies FAQ

FA Multiple Reporting Currencies FAQ

1. When converting assets from a legacy system into an MRC enabled
Depreciation Book, what exchange rate is used to convert the assets? 

A:

When converting assets from a legacy system into an MRC enabled Depreciation Book, you must provide the exchange rate to be used to convert the assets in FA_MC_MASS_RATES. For each MASS_ADDITION_ID, you will have to provide the exchange rate for each Reporting Book associated to the Primary Depreciation Book.

2. When adding assets manually or from Payables into an MRC enabled
Depreciation Book, what exchange rate is used?

A:

The GL_MC_CURRENCY_PKG.get_rate function derives the rate from the daily rates table in GL. The exchange rate chosen is based on the transaction date entered in FA.

When adding an asset, the asset cost will be converted in your reporting book based on the exchange rate entered in the daily rates for the date. When the asset is adjusted, the system will calculate a weighted average rate based on the current rate and the rate used for the addition.

3. Can I enter transactions in a Reporting Responsibility?

A:

No. Transactions are not allowed from a Reporting Responsibility. You can enter transactions only from the Primary Responsibility and the transactions can be viewed from the Reporting Responsibility in the reporting currency. The transactions for the Reporting Books are created by means of triggers

The menu options available in a Reporting Fixed Assets Responsibility are:

– Financial Inquiry
– Run Depreciation Projections
– Run Reports

4. How to Determine whether MRC is Installed?

A:

This can be determined in one of the 3 following ways.

1. Connect to SQLPLUS
SQL> select multi_currency_flag
from fnd_product_groups;

If this flag is set to ‘Y’, then MRC is installed.

2. Log on into application
Follow navigation path:
Responsibility: Sysadmin>Security>Oracle>Datagroup

Run a blind Query. If a Multiple Reporting Currencies datagroup exists then MRC is installed.

3. Run ADADMIN session. Pick option
Maintain Applications Database Objects menu.

If option ‘Convert to Multiple Reporting Currencies’ in Menu is visible, then MRC is not used. If there is option ‘Maintain Multiple Reporting Currencies schema(s)’ MRC is used.

5. How to make sure that the MRC environment is fine for Oracle Assets?

A:

These tasks should be performed by a database administrator.

1.) Run adadmin – Validate Apps Schema
Maintain Applications Database Objects
1. Validate Apps Schema(s)

2.) Run Maintain MRC schema via adadmin
Maintain Applications Database Objects
8. Maintain Multiple Reporting Currencies schema(s)
There are some questions asked. Answer Yes to all of them and the synonyms should then be created properly.

3.) make sure that there are no invalid objects :

select object_name, object_type, owner from DBA_OBJECTS
where status = ‘INVALID’ ;

If there are invalid objects, start adadmin again:
Maintain Applications Database Objects
2. Compile APPS schema(s)

4.) Check that MRC is enabled for the depreciation book:

select TRIGGER_NAME, owner, status from all_triggers
where TRIGGER_NAME like ‘FA_MC_%’ ;

5.) Make sure that the MRC triggers are enabled:

select TRIGGER_NAME, owner, status from all_triggers
where TRIGGER_NAME like ‘FA_MC_%’ ;

6. How is AVG_EXCHANGE_RATE calculated in FA_MC_BOOKS_RATES?

A:

With the introduction of APIs in R12, the AVG_EXCHANGE_RATE is now calculated using the prior rate with the delta for the new rate added to the prior value. The weighted rate is still stored but not used in the calculation.

 

7. How to disable MRC (Multiple Reporting Currencies) for Oracle Assets ?

A:

1) In your GL responsibility , Set up > financials > Books > Assign
2) Select the particular Reporting SOB and click on < Conversion Options >

3) In the ‘Conversion Options’ window , for the Application ‘Assets’ and the Asset Books , give an ‘End Date’ in the ‘Conversion Options’ tab region of the window. Save.

NOTE: If you specify a To date for Assets or Projects, the Application will immediately stop converting transactions to your reporting currencies. This happens regardless of the To date you specify, even if it is a future date.

After end-dating the depreciation book in the Conversion Options region, MRC should be disabled for this book. You can check this by running in SQLPlus:
select PRIMARY_SET_OF_BOOKS_ID, REPORTING_SET_OF_BOOKS_ID,
FA_BOOK_TYPE_CODE, ENABLED_FLAG
from GL_MC_REPORTING_OPTIONS
where FA_BOOK_TYPE_CODE = ” ;

You can also check the triggers:

select TRIGGER_NAME, owner, status from all_triggers
where TRIGGER_NAME like ‘FA_MC_%’ ;

TRIGGER_NAME OWNER STATUS
—————————— —————————— ——–
FA_MC_ADJUSTMENTS_AIUD APPS ENABLED
FA_MC_ASSET_INVOICES_AID APPS ENABLED
FA_MC_BOOKS_AIUD APPS ENABLED
FA_MC_BOOK_CONTROLS_AD APPS ENABLED
FA_MC_DEPRN_DETAIL_AIUD APPS ENABLED
FA_MC_DEPRN_PERIODS_AD APPS ENABLED
FA_MC_DEPRN_SUMMARY_AIUD APPS ENABLED
FA_MC_MASS_ADDITIONS_AIUD APPS ENABLED
FA_MC_RETIREMENTS_AIUD APPS ENABLED
FA_MC_TRANSACTION_HEADERS_AI APPS ENABLED

10 rows selected.

If they are enabled you can disable them so they will not fire when a transaction is entered:

alter trigger FA_MC_ADJUSTMENTS_AIUD disable;
etc.

 

8. Why is the Exchange Rate Not Updated when Date-Placed-In-Service is updated?

A:

When an asset is added the exchange rate used to convert the cost is based on (a) date placed in service in the case where it is added via workbench (or via Wed ADI or Asset Integrator) and (b) exchange rate based on invoice date when brought in from AP.

For all subsequent adjustments via workbench to financial info in the books window, we use weighted exchange rate if there is a change in cost. When there is no cost change, the previous exchange rate is used.

In this case when DPIS is changed there is no change in cost and the cost in the reporting book is converted at the same rate as before.

You can argue that since DPIS has changed, the cost needs to be recalculated but had the asset originally been added using invoice from AP, the exchange rate based on invoice date would have been used. If you now change the DPIS it would not be correct to recomputed the cost based on the new DPIS rate as it would result in different cost being cleared in AP and FA. As a result a change in DPIS will not use the new exchange rate if cost remains the same.

9. Can you have a Tax book that is not MRC’d when the Corp book is?

Yes you can have a tax book for which you have not provided any TAX book conversion options for conversion of primary currency to reporting in the conversions screen. (GL, Setup>Financials>Books>Assignment>Conversion Options>Assets).

10. Where does FA get the exchange rate for a manually added asset in the MRC
reporting book? What date will FA use for the exchange rate?

A:

The GL_MC_CURRENCY_PKG.get_rate function derives the rate from the daily rates table in GL. The exchange rate chosen is based on the transaction date entered in FA.

The AVG_EXCHANGE_RATE is a weighted average exchange rate based on the prior cost and current cost of the asset.

For example, given the following:

Cost Exchange_Rate Avg_Exchange_Rate
————- —————- ——————-
21399.00 3.52 3.52
29288.92 3.4475406 X

To determine the new Avg_Exchange_Rate (X), the following calculation is performed:

X = [(old cost)/(new cost + old cost) * (old exch_rate)] + [(new cost)/(new cost + old cost) * (new exch_rate)]

X = [(21399)/(29288.92 + 21399) * 3.52] + [(29288.92)/(29288.92 + 21399) * 3.4475406]

X = 3.4781304

Reference: Doc Id 197606.1