The way in which currencies are converted within Ledger Entry will depend on how the Value 1,2 and 3 tabs have been defined and which is the pivot.

Below you will see Ledger Entry being performed under the GAAP, Triangulation and Other scenarios described previously.

Click here to see the screenshot
The GAAP model Business Unit Setup was defined with:

As Value’s 1 and 3 are fixed single-code values (i.e. they are defined within the Business Unit Setup form) the Currency Code field is displayed greyed out here to prevent operators entering a different currency code.

The posting rule defined for Value 3 Reporting currency is 4-Always Calculated.  As you can see from the Journal line above, the Reporting currency USD has the amount field greyed out to prevent entry of a value.

The calculations for the GAAP model has been carried out as follows:

150,000 EUR converted to the Base currency GBP using the EUR to GBP rate of 1.44237704 giving a calculated amount of 103,995 GBP:

150,000 EUR has also been converted to the Reporting currency USD using the EUR to USD rate of 1.144. giving 171,600 USD.