Applies to Product - Dynamics 365 Finance
What’s happening?
Customers are experiencing discrepancies in currency conversion during the consolidation process, particularly in financial reports. This includes issues with exchange rates affecting the accuracy of Year-To-Date (YTD) balances in consolidation reports.
Reason:
The underlying cause of this is related to inaccurate currency translation of YTD balances in the consolidation report that directly reports on the consolidated legal entity.
Resolution:
For issues related to currency conversion in financial reports, it is recommended to review the setup of the accounting and reporting currency.
- Go to General ledger> Ledger setup> Ledger in every legal entity included in the consolidation process and check currencies and exchange rate types set for accounting and reporting currency.
- Go to General ledger> Chart of accounts> Accounts> Main accounts and select the main account with discrepancies in the corresponding legal entity. Check the default currency and if there are different exchange rate types defined per legal entity in Legal entity overrides tab.
- Review Foreign currency revaluation generated in General ledger before consolidation process in every company included in this process. Further information can be found in Foreign currency revaluation for General ledger - Finance | Dynamics 365 | Microsoft Learn
- Ensure that the correct exchange rates are applied during the consolidation process. In Consolidation online form> Currency translation tab check the configuration for currency translation during the consolidation process. More details can be found in Currency revaluation in a consolidation company - Finance | Dynamics 365 | Microsoft Learn