Reporting currencies express the accounting in your primary and/or secondary ledgers in an additional currency representation. For example, the USD primary ledger balances can be expressed in CAD or Yen by assigning a balance level reporting currency to the primary ledger.

Unlike secondary ledgers, reporting currencies can only differ by currency from their source ledger. They must share the same chart of accounts, accounting calendar/period type combination, subledger accounting method, and ledger processing options as their source ledger (primary or secondary ledger).

Reporting currencies can be maintained at three different currency conversion levels:

• Subledger: Maintains a currency representation of your subledger journals, General Ledger journal entries, and balances.

  When using the subledger level reporting currency, you must define subledger accounting rules using Subledger Accounting. These rules provide instructions on how to convert subledger data entered into the source ledger to one or more subledger level reporting currencies.

  You must also define journal conversion rules. General Ledger Posting uses the journal conversion rules to automatically replicate specific journals, such as manual journal entries, to one or more subledger level reporting currencies.

  Note: Subledger level reporting currencies can only be assigned to primary ledgers, not secondary ledgers.

• Journal: Maintains General Ledger journal entries and balances in another currency representation.

  Journal level reporting currencies are maintained using the General Ledger Posting Program. Every time a journal is posted in the source ledger, the journal is automatically converted to the respective journal level reporting currency based on the journal conversion rules defined.

• Balance: Maintains balances in another currency.

  The General Ledger Translation program is used to convert balances from the source ledger to the balance level reporting currency. When you run Translation in your primary or secondary ledger and specify a target currency, the translated balances are reflected in the balance level reporting currency.

  Note: If a balance level reporting currency is not assigned to the ledgers in the accounting setup, a balance level reporting currency is automatically created the first time Translation is run. The name of the balance-level reporting currency is the same as its source ledger except its currency code, such as (USD), is appended to the end of its name.