Setting the currency rules for a journal type

Journal Type Currency Overrides

The journal type determines the input and validation rules that apply to the transactions in the journal. When you define a journal type using Journal Type (JNT) you can override the multi-currency and memo value posting rules that have been established for the business unit.

For example, if the journal type is to be used to post currency adjustments, you may need to override the Value 3 Currency Post Rule in Business Unit Setup to allow you to enter amounts in the reporting currency rather than have them calculated automatically.

If the posting rule for a transaction value has been set to Undefined in Business Unit Setup, it means the transaction value is not being used in the ledger. You cannot override this setting using a journal type override. However, you can use an override to set the posting rule to 'Undefined' for a particular transaction value to prevent the value being entered for the journal type. For example, if transaction currency values are used throughout a business unit, but should not be entered on general journals, you would set the posting rule to 'Undefined' for the transaction currency on the journal type setup.

You can also set up a journal type that suspends all of the posting rules for a journal. This bypasses all of the amount and rate checking and should only be used in exceptional circumstances. See Overriding the Posting Rules for a Journal Type.

You can choose to override the currency rate tolerance checks for the journal transactions, and exclude the journal transactions from the revaluation processing.

Multi-Currency Journal Presets

In a multi-currency environment, you can use Journal Presets (JNP) to predefine some of the currency details for each line of a journal. For each of the four currency values that can be entered or calculated for a journal line, depending on the business unit currency rules, you can predetermine any of the following details:

• currency code (for the transaction currency or fourth currency values only)
• rate from pivot - the conversion rate to be used for the line
• amount.

For example, if you regularly repay part of a loan in euros that requires a fixed currency conversion rate, you might preset the transaction currency code to EUR and currency rate accordingly.

You can also preset the memo value, if required.

You can control whether or not these preset values can be overridden on Ledger Entry using the Enforce Presets option on Journal Presets (JNP).