Override protection

Override protection is a feature that prevents exchange rates from being overridden.

Because most currencies use no more than two decimals, but exchange rates can contain many more, currency exchange usually requires rounding up of results. Rounding up may result in journal entries that are out of balance by a few cents or summary totals that do not match the sum of their detail lines.

The possible solutions are to override transaction exchange rates so that the entries are in balance. Alternatively, you can correct the journal entries that are used for the entries to balance while keeping the exchange rates intact. This decision is made when an administrator defines a currency relationship.

Note: This feature is required for triangulated currencies. Countries participating in the European Monetary Union (EMU) are prohibited from changing the exchange rates between the euro and the participating national currencies. These are each fixed legally at a permanent, unalterable rate.

If the currency relationship is defined to require override protection, users cannot override the exchange rate retrieved from the currency rate table. The system cannot automatically override the exchange rate for the purpose of balancing journal entries.
If the currency relationship does not require override protection, users or the system cannot override the exchange rate when entering transactions.
The administrator can specify an override tolerance rate. An override tolerance rate is the percentage of variation that is permitted between the currency rate table exchange rate and the exchange rate used to override. If no override tolerance rate is specified, then all overrides are permitted.