Applies to Product – Dynamics 365 Project Operations
What’s happening?
The accounting currency and reporting currency do not balance when posting correcting journals, resulting in discrepancies in the trial balance.
Reason:
The posting logic for transactions that generate accounting entries with transaction currency amount, accounting currency amount, and reporting currency amount. The calculation requires exchange rates to exist between the transaction currency and both the accounting and reporting currencies.
Resolution:
To resolve the discrepancies in the accounting and reporting currencies, follow these steps:
- Ensure that exchange rates exist between the transaction currency and both the accounting currency and reporting currency. Check that exchange rate type is defined for reporting and accounting currency in Ledger page from General ledger> Ledger setup and that every exchange rate type contains exchange rate for every pair.
- Create manual adjustment entries to balance the reporting currency value since Reporting currency adjustment journal (General ledger> Journal entries), which is calculated by the accounting currency amount multiplied by the exchange rate on the transaction date. The offset account for these adjustments should be one of the gain or loss dimensions. Here you can find more details to post these adjustments: Posting reporting currency gain/loss
For further details, refer to the documentation on dual currency in the general ledger: Dual Currency Overview.