For each reporting set of books assignment you make, you must define conversion options for each combination of Oracle Application and operating unit for which you want to convert transactions to your reporting functional currencies. You can set conversion options for these applications:
General Ledger, Assets, Payables, Receivables, Projects & Purchasing

Conversion options you can set include the reporting conversion type, the action to take when a conversion rate cannot be found, and the range of effective dates for which transactions should be converted to reporting currencies. Also, you need to set some application specific options, such as

          o Oracle Assets: specify the Asset Book (depreciation book).
          o Oracle Payables: optionally specify the AP Reporting Secondary Book if you use combined basis accounting.
          o General Ledger: specify GL Conversion Rules, which control journal conversion at the journal source and category level.

2. Select Operating Units/Books from the poplist.

3. In the region below the poplist, select the application for which you want to define conversion options.

4. Enter your operating units/books information.

5. Choose Conversion Options from the poplist. The Conversion Options alternative region will appear.

6. Enter your conversion options.

7. Save your work.

Operating Units/Books Information
Operating Unit: For Payables, Receivables, Purchasing, or Projects, specify the operating unit for which your conversion options apply. This allows you to define different conversion options for each operating unit. Also, if you don't want an operating unit's transactions converted to your reporting currencies, you can choose to omit that operating unit when you define the conversion options for the related application.

Asset Book: For Assets, specify the asset depreciation book for which your conversion options apply. The asset depreciation book can be either a corporate book or a tax book. You can associate multiple asset depreciation books to a reporting set of books.
    Note: The asset depreciation book you specify must be linked to your primary set of books.

AP Reporting Secondary Book: For Payables, enter the AP Reporting Secondary Book if you use combined basis accounting and want your Payables secondary set of books transactions to be converted to your reporting currencies.

The diagram below illustrates the relationship between the AP primary and secondary books, and their related reporting sets of books. In the diagram, the Payables primary set of books is used for accrual basis accounting and the Payables secondary set of books is used for cash basis accounting.

You must enter a Reporting Conversion Type when defining conversion options for your subledger applications, such as Payables and Receivables.

For the reporting conversion type, you can specify your own conversion rate type or choose one of the predefined rate types. To specify your own, you must first define it in General Ledger.

No Rate Action: Determines the action MRC should take if it cannot find a rate for converting transactions to your reporting functional currency, for the reporting conversion type as of the conversion date.

Note: For General Ledger, the No Rate Action field is set for specific combinations of journal source/category on the GL Conversion Rules window. See: Define General Ledger Conversion Rules

You can select one of two options:

• Report Error: If MRC cannot find an exchange rate for converting to the reporting functional currency, you will receive an error when you try to save the transaction.
• Use Last Rate: If MRC cannot find an exchange rate for converting to the reporting functional currency, it retrieves the most recently entered exchange rate. If MRC cannot find a stored exchange rate, you will receive an error when you try to save the transaction.
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Additional Information: When searching for the exchange rate, MRC will only look backwards the number of days specified in the profile option, MRC: Maximum Days to Roll Forward Conversion Rate. If you have not specified an entry for the profile option, MRC will search back as far as the first entered exchange rate.

Effective Dates -- From/To: The range of effective dates for which you want to convert transactions to your reporting functional currency for the specified:

          o Application and operating unit for Receivables, Payables, Purchasing, and Projects
          o Application and Asset Book for Assets
          o Application only for General Ledger

You must enter a From date, which is the first date for which MRC will convert transactions.
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.

Changing Conversion Options
You cannot delete conversion options once you save them. You can, however, change some of them, depending on the application to which they apply:

All applications: You can change the effective dates any time. Note that the changes are effective immediately, but that they apply only to new transactions. The change has no effect on previously entered transactions.
Caution: We strongly recommend you do not change effective dates once you begin using MRC. Changing the effective dates may result in inconsistent transaction amounts and balances in your reporting sets of books.

All applications except General Ledger: You can change the Reporting Conversion Type and the No Rate Action values any time. Note that the changes are effective immediately, but that they apply only to new transactions. The change has no effect on previously entered transactions.

Payables: You can change the AP Reporting Secondary Book. The change is effective immediately, but applies only to new transactions. The change has no effect on previously entered transactions.
Caution: We strongly recommend you do not change the AP Reporting Secondary Book once you begin using MRC. Changing the AP Reporting Secondary Book may result in inconsistent transaction amounts and balances in your AP Reporting Secondary Book.