Defining the Use of the Values 1,2,3,4 and Pivot Value
Every transaction can hold up to four values.
When you define a business unit, you must determine how each of these four values are used, if at all. You must also identify the pivot currency.
The three currency values available on a transaction are referred to as Value 1, Value 2 and Value 3. Value 1 is the base currency, Value 2 is the transaction currency, Value 3 is the second base or reporting currency and Value 4 is the fourth currency
Additionally in the Financials ledgers a fifth currency is available for holding the rate between one of the values 1-4 and a further currency. This is used for situations where the fourth currency is used as a banking currency and settlement needs to be made in an alternative banking currency. The value itself is not held against the posting. It is only the rate and the currency code which are recorded.
Every transaction must contain a base currency value. It is usually the national currency of the country in which the business unit is based. All of the reports and inquiries use this as the default currency. This is a fixed currency and it must be identified for the business unit.
Once it has been set and journals have been posted, you cannot change this currency.
The transaction currency and second base or reporting currency values are optional. You must determine whether or not they are required for the business unit and how they are to be used.
For each currency value you must determine: