Setting the currency balancing rules

All of the base currency values on the transactions in a journal must balance before the journal can be posted.

This means the total of the debit base currency values must equal the total of the credit base currency values.

If these values do not balance, you can determine how this imbalance should be corrected. It can be corrected automatically by the system, or you can force the operator to balance the journal manually. If it is corrected automatically, the balancing amount is posted to a nominated account, for example a suspense or rounding difference account.

When you define a business unit, you can determine the balancing rules for the base currency. The balancing can be Automatic or Manual. If it is Automatic, you must identify the balancing accounts and you can set a limit on the balancing amount to ensure very large adjustments are not made automatically.

In a multi-currency environment you can also determine whether or not the transaction currency, second base/reporting currency, and fourth currency values must also balance on a journal, and if so, identify the balancing accounts for each.

Note: Where multiple transaction currencies, or multiple fourth currencies, are present within the same journal, the system does not balance each of these currencies individually but it can balance Value 2 or Value 4 in total.