Answer Sheet (Test No.

4)
MULTIPLE REPORTING CURRENCIES, SECURITY RULES, CONSOLIDATION
01. What are the steps for MRC?
MRC is used for reporting in any other Currency including functional currency. We use
Primary and reporting set of books for MRC, the primary and the reporting SOB
should have the same COA and Calendar but may have different currency.
Steps for MRC

Define Primary SOB; this is done at SOB level at MRC tab by checking the
Primary SOB radio (B).

Define Reporting SOB, this is also done at sob by checking the reporting SOB
radio (B) and uncheck the budgetary control at Budgetary control Tab as they
are mutually exclusive. This SOB should have the same Chart of Accounts &
Calendar but the Currency may differ.

Open the periods in Primary & Reporting SOB.

Define daily conversion rates

Assign Reporting SOB to Primary SOB. Here we have to define the Conversion
options and GL Conversion Rules.

02. Explain
Currencies.

difference

between

Translation
Translation can be done for unlimited
Reporting Currencies.
For translation we should open prior
period and following periods.
Translation cannot be done for first
period.
For Translation we have to define period
average rate and period end rate.
The difference arising between period
average rate and period end rate will go
to Translation adjustment a/c
Translation is done Manually
Translation will be done by balance wise

Translation

and

Multiple

Reporting

Multiple Reporting Currencies

It is restricted to 8 reporting Currencies
in MRC
No such conditions prevails in MRC
We can translate for first period also in
MRC
In MRC only daily rates are defined.
Here no such difference as we are taking
the daily rates for translation.
MRC is automatic.
MRC is Transaction wise

03. Explain concept of budget formula. And what are the steps for defining
budget formula?
We define budget formulas to calculate budget amounts. Budget formulas can be
simple or complex. When you define budget formulas, you create a budget formula
batch. The batch contains one or more budget entries, and each entry contains one

or more formulas. Use budget batches and entries to group your budget formulas.
For example, you might combine all formulas for a single department or division into
one batch, or group all formulas for certain types of calculations into separate
entries. When you calculate budgets using a budget formula, General Ledger
replaces any existing budget amounts directly; it does not create a budget journal.
We can use budget formulas only for planning budgets
Steps for Budget formula
1
Define planning budget
2
Define budget organization for the planning budget, in this define the
ranges of accounts and in assign ranges the first line should be main
account (on which we perform the calculation with type as entered & line
2 should be the target A/c with type Calculated.
3
Create Budget formula here enter the main A/c and the target A/c and
formula for calculation and calculate for the required period.
04. What is the Diff between the Segment Rules and Account Rules? And
explain in brief?
Segment rules are defined in Consolidation. In segment rules we mention the
mapping rules between the parent & subsidiary SOB.
The mapping rules are of four types
1.Assign Single Value
2.Copy Value from
3.Use Rollup Rules
4.Not Assigned.
Segment rules make consolidation process fast and easy transfer of data between
the parent and subsidiary books.
Account rules: Map a specific subsidiary account or a range of accounts to a specific
account in your parent set of books. For example, you can map subsidiary account
02.300.5400.100 to account 01.100.3000.000.000 in your parent set of books. Or,
you might map the entire range of subsidiary accounts 02.300.5400.100 through
02.300.6999.100 to account 01.100.3000.000.000 in your parent set of books
Account Rules override segment rules if any conflict.
05. Is it required to have Translation for GCS?
No, Translation is required if the currency in parent and subsidiary SOB is different.
06. Can I use different mandatory account combination for reporting SOB?
Yes, we can have, but this will not have any effect in the primary SOB and will
override RSOB.
07.Whether my Budget Journals do transfer to Reporting SOB automatically.
No, budget journals will not transfer to Reporting SOB. Both are mutually exclusive
08. Can I have more than one Reporting SOB?

Yes, We can have up to 8 Reporting SOB

09. If I run a concurrent program to post all journals in primary whether the
same will post all journals in reporting SOB?
No, we need to post in RSOB because while posting the entry in PSOB it will create
only unposted entries in RSOB.
10. What is difference between Conversion options and GL conversion rules?
These options are available in MRC, while assigning the Reporting SOB to Primary
SOB.
In Conversion option we specify the Oracle Application and affective date of
Conversion
In GL Conversion Rules we specify the Source, Category and Conversion type.
11.Which dates conversion rate will be used for reversing journal in MRC i.e
the date of journal or date of reversal.
Date of Journal.
12.Can I have different first periods for primary and reporting SOB.
Yes, we can have different first periods due to which we cant transfer the data from
PSOB to RSOB for the prior periods of the RSOB
13. What are the differences between CVR and Security rules
Cross Validation Rules
1. The CVR are specific to COA
2. Restrict the Combination
3. Available for KFF

Security Rules
Specific to responsibility
Restrict to define segment value
Available for both KFF & DFF

14. What type of Value sets will not support the security rules?
None, Pair & Special.
15. If I perform consolidation whether my budget balances will also
consolidate?
No, we can perform consolidation for budgets also but the calendar should same.
16. Can I transfer different periods subsidiary SOB balances to parent SOB
by using Transfer Consolidation Data Set?
Yes, There is option of Subsidiary period available in Transfer Consolidation data set
where we can enter different periods of the Subsidiary SOB balances.
17. What are different methods of Consolidation?
1. Balances 2. Transactions

18. Whether my Budget amounts are converted to reporting currencies

automatically?
No, because budget and reporting set of books are mutually exclusive
19.Whether Global consolidation consolidates my subsidiary foreign
currency balances also?
Yes, while entering the foreign currency JVs in Subsidiary SOB there itself it will
convert to the functional currency of Subsidiary SOB.