Setting the currency posting rules

When you set up the business unit settings in Business Unit Setup you must define a posting rule for each currency value.

This determines whether or not the currency value is required on each ledger posting transaction, whether it must be entered manually or can be calculated.

There are several options available, only some of which are available for each type of currency value and depending on which currency is the pivot:

  • Undefined (or blank) - this option prevents a currency value being entered.
  • Only present if entered - this option allows a currency value to be entered manually on a transaction. However, the value is not mandatory, so if it is not entered the value is not calculated.
  • Must be entered - this option can be used to force a currency value to be entered manually on every journal transaction.
  • Calculated if not entered - this option means the currency value can be entered, or if it is not entered, it will be calculated automatically from another value entered.
  • Always calculated - this option means the currency value is always present on every transaction and is always calculated by the system.
  • Rate Only - this option means that the currency rate can be entered but not the currency amount. This option is only available for the fifth currency and all amounts for this currency are calculated when required.

These posting rules can be overridden for particular journals using Journal Types Setup (Posting Overrides) (JTX). For example, under normal circumstances the business unit may be set up to prevent manual postings in the reporting currency using the 'Always calculated' option. However, in exceptional circumstances you may need to be able to post to this currency value to make an adjustment, so a special journal type would be established which sets the 'Only present if entered' posting rule.

There are two additional posting rules that are not available in Business Unit Setup, but are available as overrides for values 2 and 4 only:

  • Must not be calculated - this option means that if the currency code is entered, an amount must also be entered as the amount will not be automatically calculated. The transaction line can be held on the journal hold file, but not posted to the ledger.
  • Can be Blank - as with the Must not be Calculated option, this option means that if the currency code is entered, the amount will not be calculated. However, unlike the Must not be calculated posting rule, you can enter a Currency Code with no amount entered, but only if the Chart of Accounts Value 2 Currency Control is set to Prohibited for the account. With this option the transaction line can be posted to the journal hold file or the ledger.