What is Reporting Currency?

A reporting currency is a financial reporting entity associated with a ledger. The reporting currency has the
same chart of accounts and accounting calendar as the ledger, but usually has a different currency. To
maintain ledger transactions in multiple currencies, we use reporting currencies and are additional
currency representations of primary or secondary ledgers. Reporting currencies can be used for
supplementary reporting purposes, such as consolidation or management reporting. The term Reporting
Currency refers to subledger or journal-level reporting currency, rather than balance-level reporting
currency. Financial reporting can be performed using the ledger currency or any of the reporting
currencies. When we enter journals in General Ledger, they are converted into the ledger currency and
each of the reporting functional currencies. We can inquire and report on transactions and account
balances in reporting currency by logging onto a responsibility that has access to the reporting currency.

When to use Reporting Currencies

Reporting currencies are intended for use by organizations that must regularly and routinely support
statutory and legal reporting of both transactions/journals and General Ledger account balances in
multiple currencies--other than the ledger currency. If we only need to report account balances in a
currency other than your ledger currency, we can use General Ledger translation. To use reporting
currencies, we must define reporting currencies for ledger in Accounting Setup Manager.
Reporting currencies are not intended as a replacement for the General Ledger translation function.
Reporting currencies can be maintained at the following currency conversion levels:
1.
Balance Level
2.
Journal Level
3.
Subledger Level

In 11i
If it is Balance level then it can be achieved by using Translation process and generate Trial balance in
reporting currency. Details level information such as Subledger or Journal would be achieved through
Multi reporting Currency (MRC). Reporting Currency Functionality in R12 is combination of both MRC and
Reporting currency in 11i.
In AX Countries (France, Italy, Greece, Portugal, Spain, Austria) there is a concept called Dual posting,
where we can enter in Global chart of Accounts and post in Local COA. But this is only required for the
following Subledgers1.
Oracle Inventory
2.
Oracle receivables
3.
Oracle Payables
For all other modules in 11i we need to use consolidation process to transfer the date from entered to
Reporting COA.
In R12
This functionality can be achieved through secondary Ledger where we can have different COA than the
Primary Ledger and with help of SLA we achieve all the statutory requirement for the organization. This
feature in R12 is available for almost all modules like AP, AR, FA, GL, etc. Secondary ledgers can be used
to represent Primary Ledger's accounting data in another accounting representation that differs in one or
more of the following from the Primary Ledger:

Chart of accounts

Accounting calendar/period type combination

Currency

Subledger accounting method

Ledger processing options

When to Use Secondary Ledger
If a legal entity must perform corporate and statutory reporting, we can use the Primary Ledger to satisfy
corporate reporting requirements and then use a Secondary Ledger to satisfy statutory reporting
requirements. If a legal entity is a subsidiary of a parent company and must produce its financial results
according to the parent company's reporting requirements in addition to its own local reporting
requirements, then a secondary ledger may be used to satisfy the additional reporting requirement.
Secondary ledgers can be maintained at the following data conversion levels
Balance level secondary ledger

Subledger level secondary

Journal level secondary ledger

Adjustments Only Secondary Ledger

Difference between Reporting Currency and Secondary Ledger
Reporting currency is used only when the Currency of Primary Ledger need to be changed for reporting
purpose. This can be used to capture the information in reporting currency at Balance level, Subledger
level and Journal level. Secondary Ledger could be used when we need to change the Chart of Accounts
and Accounting convention method to meet the statutory and corporate requirements. This is used
primarily where the organization need to report in different authorities like Local authorities, US
GAAP,IFRS,IASB etc.
Translation versus Reporting Currencies
General Ledger's translation feature (balance level reporting currency) is used to translate amounts from
Ledger currency to another currency at the account balance level. Reporting currencies convert amounts
from your transaction currency to a reporting currency at the transaction or journal level. Reporting
currencies are specifically intended for use by organizations that must regularly and routinely report their

financial results in multiple currencies. As stated earlier, Reporting currencies are not intended as a
replacement for General Ledger's Translation feature.
Another benefit of reporting currencies over General Ledger's Translation feature is that with reporting
currencies, we can inquire and report on transaction amounts directly from your subledgers. Translation
only applies to General Ledger - it cannot be used to translate transaction amounts in subledgers.
Currency Concept and Different Ledgers
Functional

Organizations functional currency which can be different from the ledger currency that is

Currency

assigned to primary and secondary ledgers.

Ledger Currency

Currency assigned to a ledger, such as the primary ledger or secondary ledger, and represents
the base currency used to record transactions and maintain accounting data for legal reporting.

Reporting Currency Currency other than ledger currency, for which we need to report and shares the same chart of
accounts and accounting calendar as the source ledger (either the primary ledger or
secondary ledger), but typically uses a different currency. Reporting currency allows to report
in a different currency than that of primary or secondary ledger.
Primary Ledger

Primary ledger acts as the main, record-keeping ledger and uses a particular chart of
accounts, accounting calendar, currency, and subledger accounting method

Secondary Ledger

Optional, additional ledger associated with the primary ledger for an accounting setup and is
used to represent the primary ledger's accounting data in another accounting representation
that differs in one or more of the following from the primary ledger1. Chart of accounts
2. Accounting calendar/period type combination
3. Currency
4. Subledger accounting method
5. Ledger processing options, such as Suspense Posting

Below are the required steps to set up reporting currencies in the applications.