Currency Creation

1. What is Currency?

• Currency represents the monetary unit used to measure and record financial transactions.
• Every country has its own official currency, such as:
• 🇮🇳 INR — Indian Rupee
• 🇺🇸 USD — US Dollar
• 🇬🇧 GBP — British Pound

In Oracle Financials, currencies play a key role in recording, reporting, and converting business transactions across different countries.

 

2. Types of Currency in Oracle

Oracle classifies currency into two main categories:

1. Monetary Currency
2. Non-Monetary Currency

 

2.1 Monetary Currency

• Monetary currency is used to record the actual monetary value of day-to-day business transactions.
• Examples: INR, USD, GBP, EUR, etc.

There are two subtypes of Monetary Currency in Oracle:

a. Functional Currency

• This is the primary currency of the Ledger.
• All accounting records, financial statements, and reports are maintained in this currency.
• Examples:
• For a company in India → Functional currency is INR.
• For a company in USA → Functional currency is USD.

Think of Functional Currency as your “base currency” for all financial activities in that ledger.

 b. Foreign Currency

• Any currency other than the Functional Currency is called a Foreign Currency.
• It is used when business transactions occur in a currency different from your ledger currency.
• Examples:
• For an Indian company (Functional = INR), USD is a foreign currency.
• For a US company (Functional = USD), INR is a foreign currency.

 Oracle uses conversion rates to convert foreign currency transactions into functional currency for reporting and accounting.

 

2.2 Non-Monetary Currency

• Non-monetary currency is also called STAT Currency (Statistical Currency).
• It is not used for financial amounts, but rather for statistical information or calculations.
• It helps in performance analysis, ratios, and reporting.
• Examples:
• Ratios
• Headcounts
• Percentages
• Meters, Units, etc.

Non-monetary currencies do not affect ledger balances, but are useful for additional reporting and KPIs.

 

3. Oracle Navigation to Define Currency

To define and manage currencies in Oracle Fusion Applications:

1. Navigator →
2. Setup & Maintenance
3. Tasks → Manage Implementation Projects
4. Click on your Implementation Project Name
5. Go to Financials
6. Define Common Application Configuration for Financials
7. Define Enterprise Structures for Financials
8. Define Financial Reporting Structures
9. Define Currencies → Manage Currencies
10. Click on Go to Task
11. Click on the “+” icon to add a new currency

Here, you can:

• Define new currencies (if needed)
• Enable/disable currencies
• Set precision, rounding rules, and effective dates
• Manage conversion rates

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