Understanding Ledger Type Rules
You use ledger type rules to control processing for a specific ledger type. You can simplify processing at the ledger level by specifying ledger dependencies and transaction creation parameters. For example, you can specify an alternate currency ledger and the tax ledgers that are associated with it.
You can also revise rules to comply with regulatory requirements. For example, some countries require that costs be rounded or truncated to one decimal place. You can specify that the ledger for that currency be rounded or truncated as necessary.
By revising ledger type rules, you override the normal default values. For example, you might have a default date pattern that you use for depreciation calculations for the company; but you might have to override this pattern for one tax ledger because of regulatory requirements.
You can control several aspects of processing for a ledger type, including:
Relationships to other ledgers.
Currency of the ledger.
Override date and period patterns.
Transaction processing.
You can specify that the cost from a ledger should be derived from another ledger type. If you specify that the cost in one ledger (for example, D1) should be derived from another ledger (for example, AA), then you must post cost to the other ledger, AA, first. The ledger type from which you derive the cost must be less than the ledger type to which you post the cost. For example, ledger type AA is alphanumerically less than ledger type D1. Therefore, costs in D1 could be derived from AA. Costs for the AA ledger cannot be derived from another ledger.