Overriding the posting rules for journal types
When you define a business unit in Business Unit Setup, you define the normal posting rules for the organization. These rules apply to all ledger entry, unless they are overridden on a particular journal type.
When you define the normal rules, Business Unit Setup restricts the posting rule options you can select for each type of value. It only allows you to choose options that will maintain the integrity of the financial data. For example, the base currency value is mandatory, so when you define the posting rule for this value for the business unit, you cannot select the Only present if entered option because that would make the base currency value optional.
Overriding the posting rules
The Journal Types Posting Override form is the same as that of Journal Types (JNT), except for the Security tab, in which there are some additional options that allow you to override the posting rules in the journal type.
- Because the posting override options on a journal type are so powerful, they are not available in the basic Journal Types (JNT) form; they are available in a special version of the form called Journal Type (with Posting Rules) (JDX).
- You can use the security facilities Security Console or User Manager and in Form Permissions Editor (FPE) to ensure that only authorized users can update the posting overrides using the (with Posting Rules) version of the form.
You can use Journal Type (with Posting Rules) form to define a journal type that overrides the normal business unit posting rules, for some or all of the transaction values. You can apply any of the posting rules available to the transaction value, provided the value is being used i.e. the posting rule is not set to Undefined on Business Unit Administration (BUA).
For example:
- If the transaction currency business unit posting rule is set to 'Only present if entered', you could define a journal type that insisted on a transaction currency value being entered by choosing 'Must be entered' as the override posting rule for the value.
- You could define a journal type to post local adjustments that are not reflected in the reporting values by setting the override posting rule for the Value 3 reporting currency to 'Undefined'.
The posting rules available can be set as overrides on the following value types:
| Posting Rule | Can be used as override on the following: |
|---|---|
| Undefined | Any value type |
| Only present if entered | Transaction currency, 2nd base currency, memo value, fourth currency |
| Must be entered | Base currency, reporting currency, memo value |
| Calculated if not entered | Base currency, transaction currency, fourth currency |
| Always calculated | 2nd base or reporting currency |
| Must not be calculated | Transaction currency and fourth currency |
| Can be blank | Transaction currency and fourth currency |
| Rate only | Fifth currency |
The Must Not be Calculated Posting Rule
The Must not be calculated posting rule can only be used for the transaction currency (value 2) and the fourth currency and can only be set as a posting override for a journal type.
It is similar to the Only Present if entered rule. Using the Only present if entered rule, if a currency code is entered, the system calculates the corresponding currency amount/rate. It is therefore impossible to enter a transaction that does not include both a currency code and associated currency amount.
However, using the Must not be calculated posting rule, if a currency code is entered on a transaction, you must also enter an amount as the system will not calculate the amount/rate. If sufficient currency details are included, rate tolerance checking is carried out for this posting rule, but this results in a warning which can be overridden, rather than an error message.
The can be blank posting rule
The Can be Blank posting rule allows you to 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.
Suspending the Posting Rules
You can also suspend the posting rules for all of the transaction values in use. This should be used with great care because it bypasses all of the amount and rate checking and should only be used in exceptional circumstances. For example, it allows you to post a second base value without the corresponding base currency value.
To suspend the posting rules you must set the Suspend Post Rules option and set all of the posting rules to either Undefined or Only Present if Entered.