Business Unit Setup - Value 3 Entries

Value 3 properties refer to the third of the four currency values that can be held on a transaction. This is a predefined, fixed currency. This currency value can be defined as either a second base currency or a reporting currency.

  1. Complete this information in General:
    Value 3 Currency Name
    The name of the second base or reporting currency.
    Value 3 Currency Code
    The code identifying the second base or reporting currency.
    Note:  If this currency has not been defined using Currency Codes (CNC), it is added automatically.
    Value 3 Currency Post Rule
    The posting rule that controls whether or not the second base or reporting currency value is required on each ledger posting transaction. Available options are:
    • Undefined (or blank) - this option prevents a second base or reporting currency value being entered on any transactions.

      For example, the external file to be imported contains both base and reporting values, and the reporting value is not to be recalculated.

    • Always calculated - this option means the second base or reporting currency value is always present on every transaction and is always calculated by the system.
    Note: If currency adjustments need to be made in this currency alone, these posting rules can be overridden on a journal type.
    Value 3 Cur Amt Decimal Places
    The number of decimal places held for the second base or reporting currency value. A value can be held with up to three decimal places.
  2. Complete this information in Value Type:
    Value 3 Currency Type
    This determines the use of the Value 3 currency. Three options are available:
    • Not defined - the third currency value is not used in the business unit.
    • Second base currency - this is a second, parallel base currency. The base and second base currencies are always present on a transaction and represent the same value, in the two different currencies.
    • Reporting currency - this currency is used primarily for reporting. It appears on some or all transactions and is normally calculated by the system. A reporting currency cannot be used as the pivot currency.
  3. Complete this information in Amount Balancing:
    Value 3 Cur Amount Balancing
    You may wish to force the second base or reporting currency values on each transaction in a journal to net to zero to keep the ledger balanced. Sometimes, the values may not be exactly in balance due to conversion rounding errors. This option determines whether the transactions must balance, and if so how an imbalance is corrected. Two options are available:
    • None - the currency values do not need to balance.
    • Automatic - the system posts the amount of the imbalance to one of the Value 3 Currency Balancing accounts, depending on whether the difference is a debit or credit value. This option must be chosen if Value 3 is defined as a second base currency.
  4. Complete this information in Balancing Details:
    Rounding Threshold
    This amount is used as a tolerance check if the automatic balancing option is being used to balance the second base or reporting currency values on transactions. If the amount of an imbalance is greater than this amount, it cannot be posted automatically. This prevents very large postings being made under the guise of rounding errors.
    Credit Balancing Account
    The ledger account to which any automatically generated, second base or reporting currency balancing transactions with a credit value is posted. If you leave this blank, all balancing transactions are posted to the Debit/Net Balancing account.
    Debit/Net Balancing Account
    The ledger account to which any automatically generated, second base or reporting currency balancing transactions with a debit value is posted.
    Note:  Normally these entries are made before the chart of accounts is created. You must ensure these accounts are created and are not Memo accounts. Otherwise, error messages are received during posting.
  5. Save your changes.
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