The Triangulation Model Business Unit Setup was defined with Value 1 as GBP, Value 2 Transaction currency (in the above example we have used USD) and Value 3 as Second Base currency.  Value 3 Second Base has been defined as the pivot currency.

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 fields are displayed greyed out here to prevent operators entering a different currency code.  Also as Value 3 is Second Base and pivot, both Base and Second Base rate fields are greyed out.

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

Ledger Entry has performed the calculations as follows, converting the Transaction currency USD to the pivot currency EUR, then to the Base currency GBP.

200,000 USD converted to EUR via the EUR to USD rate –

            200,000 / 1.144      =  174,824.17

 This intermediate, or pivot, value has been converted to GBP via the EUR to GBP rate –

            174,824.17 / 1.44237704 = 121,206.29.