Revaluation Concept in Oracle Apps

It is used to identify unrealized gain/loss amount which occurred due to foreign exchange rate fluctuations. The difference in revaluation will be transferred to unrealized gain/loss a/c. We run revaluation in two modules- i.e., GL & FA. In GL we run the revaluation to know the current asset & liabilities due to fluctuation in the currencies and In assets we run the revaluation to revalue the assets.
Note: Revaluation can be done only before making the payment or before receiving the amount in GL.
Setup Steps:
1. Define “Unrealized Gain (revenue) a/c & Unrealized Loss (Expenses) a/c” at account segment level.
Note: If required assign profile option “GL: Revaluation: Validate Gain & Loss A/c” at responsibility Level.
2. Define exchange rate type
3. Define Exchange rate.
4. Enter foreign currency journal & post it.

Note: If you want to see the changes you change the exchange rate.5. Run Revaluation.
6. Query revaluation journal and post it.

Now, Let see how to configure revaluation concept.

Step 1: Define Unrealized Gain A/c (Qualifier as: Yes, Yes, Revenue, No, No) and Unrealized Loss A/c (Qualifier as: Yes, Yes, Expenses, No, No) at account segment Level.

Navigation: Setup --> Financials --> Flex fields --> Key --> Values.

Step 2: Define Exchange Rate Type

Navigation: Setup --> Currency --> Rate --> Types.

Click on New and add "Rate Type" and " Description".

Step 3: Define Exchange Rates.

Navigation: Setup --> Currencies --> Rates --> Daily.

Click on "Enter by Date Range" button

Say "Apply".

Step 4: For Testing Revaluation Concept, Ensure one foreign currency journal exists. 

Navigation: Journal --> Enter

Step 5: Run Revaluation

Navigation: Currency --> Revaluation.

Enter name and description for revaluation
Currency Options: Choose single currency & USD
Rate Options: Choose Daily Rates & Exchange rate type
Choose Unrealized gain & loss accounts
Choose revaluation ranges

Say " Revalue"

Submit request window will automatically open with program as “Program – Revalue balances”

Fill all parameter details and submit the request.

Click on View --> request and ensure program completed normal

Say "View Output" 

Step 6: Now Query Revaluation Journal and post it

Navigation: Journal --> Enter.

Now, See the change and Post it.

Secondary Ledger Concept in Oracle Apps

- Optional Feature, Used for the purpose of tracking alternate accounting which is linked to your primary ledger.
- Can differ in one or more of the following from the primary ledger
            Chart of accounts
            Accounting calendar
            Currency
            Subledger Accounting Method (SLA)
- The Secondary Ledgers are used for supplementary purposes and can be used for global companies to comply with various legal requirements. 
Difference Between Reporting Currency and Secondary Ledger.

If you only need multiple currencies to support your reporting requirements, use reporting currencies with a primary ledger. If you need to account for your data using different calendars, charts of accounts, accounting methods (SLA) in addition to currency, use a secondary ledger.
Data Conversion Level
           1. Balance Level.
           2. Sub Ledger Level.
           3. Journal Level.
           4. Adjustment Only Level.
Setup Steps: 
1. Define Exchange Rate Type. 
2. Define Exchange Rate. 
3. Define Secondary Ledger. 
Navigation: Setup --> Financials --> Accounting Setup Manager --> Accounting Setup.
4. Come to Secondary ledger region & complete setup step options. 
5. Define Secondary ledger to the GL Responsibility with profile options “ GL ledger Name” 
6. Assign Secondary ledger GL Responsibility to User. 
7. Open periods in secondary ledger. 
8. Enter journal in primary ledger and post it. 
9. Query the journal in secondary ledger and post it.