ArticlesAC: How to Manually Adjust Journal Entries Using Override Dual Values

Note that it only makes sense to override a Dual Value if there is a difference between home and dual currency, that is, if there is an exchange rate between them. While this article focuses on Dual Value, the Home Value can also be overridden using the same technique (using the Override Home Value field.

This use case is but one example of when an operator may need to override exchange rate values.  Others include where the rates themselves are set externally (such as in a bank transfer).  This document is limited to entering a transaction dual value (ignoring rates). 

• “Exceptions to standard practice” implies that while the system allows the operator to create this entry, the entry should not be necessary if the system has been set up correctly.   Unusual entries can have unintended consequences.  It is strongly recommended that working papers (audit notes) carefully document the context of these entries for audit purposes

Users with multiple companies using different home currencies may need to adjust journal entries to correct Dual Value amounts. These transactions are exceptions to standard operating practices:

• The transaction bypasses the use of exchange rates in calculation of a Dual Value
• The transaction will have zero dollar values for Document and Home Value, (normally the dual value is calculated based on the document value)
  • Normally a journal cannot have zero values for Document Value
  • The exception to this practice is when the system creates revaluation transactions (which does not affect the Document Value as it is not affected by exchange rate movement)

Setup Information

See the following in Help to learn about the override function:

• Overriding Currency Values and Rates on a Journal
• Journal Fields Reference (this document uses line level fields, not header)
• Journal Line Item Fields

The presence of override rates for Dual, Reporting and Journal (Home); and override values for Home, Dual, Reporting, Account, Dimension(s), Bank, GLA and Local GLA on both the header and detail lines provide insight into the variety and complexity of use cases

For the Manual Journal Using Override Dual Values use case, the relevant field is Override Dual Value on the Journal Line Item. Fields for rates and fields on the Journal header are not relevant.

Enable Custom Settings

1. Navigate to Setup > Custom Settings
2. Under Accounting Settings, enable the Allow Override when Value is Zero and Override Currency Values on Journal Line checkboxes

Set Up Page Layouts

The Journal Line layout, displayed on the Journal Header page on the Line Items Lightning tab, is dependent on field sets on the Journal Line that correspond to the tax treatment of the parent Accounting Company (SUT/ VAT/ Combined). This business logic is embedded in the Accounting Journals Lines Panel Lightning component.  

In the example used in this article, 

• The company of record uses a home currency of GBP and dual of USD
• The document currency is CAD

1. Open the Manage Lines VAT/GST field set
2. Insert the Override Dual Value after the Value field

Results

A correcting Journal is created to make the following entry:

• Company: Xxxxxx Xxxx Xxx.
• Document Currency: CAD
• Manual Journal
  
  
  

Journal: Note that Credit/Debit Value fields are zero
 

Posted Transaction
 

This article demonstrates how to create a transaction to correct valuation errors created in cross-company/cross-currency operations. The result are transactions with values in the Dual (or for that matter reporting) and zero values in Document and Home currencies.