Our client is having a business of downstream petroleum distribution. 75% of Business is of exports and balance local. currently the statutory reports are sent to government which include Export business and local.
As part of EBS 12.1 implementation and during the reqirement phase message was clear that they would like to separate the local business and transit business. Another requirement was export products should be stored at USD currency since the exports are in USD and convertion into local currency will attract Exchage rates on every posting to GL and subledger.
To overcome this the proposed solution is create 2 ledgers with local currency and USD to handle local and Export Business respectively and consolidate into third ledger. once the offshore company is ready to handle the export transactions the business can have independent Financial statements.
Request all the Gurus to validate the above solution as per the best practices and suggest a way forward. I am open to from all Gurus.