Defining the use of the currency values

In Order Fulfilment, every transaction can hold up to four values, three currency values and a memo value. In Financials every transaction can hold up to five values, four currency values and a memo value.

When you define a business unit, you must determine how each of these values are used, if at all. You must also identify the pivot currency.

The four currency values held on a transaction are referred to as Value 1, Value 2, Value 3, and Value 4. Value 1 is the base currency, Value 2 is the transaction currency, Value 3 is the second base or reporting currency, and Value 4 is the fourth currency.

Every transaction must contain a base currency value. It is usually the national currency of the country in which the business unit is based. All of the reports and inquiries use this as the default currency. This is a fixed currency and it must be identified for the business unit. Once it has been set and journals have been posted, you cannot change this currency.

The transaction currency, second base or reporting currency, and fourth currency values are optional. You must determine whether or not they are required for the business unit and how they are to be used.

For each currency value you must determine:

• whether or not it is required.
• whether it can be entered manually or calculated automatically.
• the journal posting rules that apply.
• the journal balancing rules that apply.
• the number of decimal places to be used.