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How to Handle Historical Exchange Rates in Microsoft Dynamics 365 Business Central

Jun Wang Profile Picture Jun Wang 4,088 Super User

How to Handle Historical Exchange Rates in Microsoft Dynamics 365 Business Central

When managing financial transactions across multiple currencies, maintaining accurate currency exchange information is crucial. Dynamics 365 Business Central supports this need efficiently, but what happens when you need to handle historical exchange rates? Here's a guide on how to manage both current and historical exchange rates using Business Central, including solutions for common challenges like posting journal entries with historical transactions.

1. Setting Up Additional Currencies

Firstly, setting up additional currencies in Business Central is straightforward. Navigate to the Currency list under Finance Management, and add new currencies as needed by specifying their codes, symbols, and rounding rules.

2. Integrating Exchange Rate Services

To automatically update current exchange rates, you can integrate services like floatrate.com. However, this typically covers current rates only.

3. Importing Historical Exchange Rates

For historical rates dating back to specific dates (e.g., 2000/01/01), you will need to import these manually as Business Central does not automatically fetch historical data.

Options for importing historical rates include:

  • Manual Entry: Enter rates directly into the Currency Exchange Rate page. This can be time-consuming but is feasible for smaller data sets.

  • Excel Import: Prepare an Excel file with historical rates and use the Configuration Packages feature to import this data. Here’s a basic step-by-step:

    1. Go to Finance Management > Setup > Exchange Rates.
    2. Prepare an Excel file with columns for Currency Code, Date, and Exchange Rate.
    3. Use the Configuration Packages to import your Excel file into the Currency Exchange Rate table.
  • Customization: If you frequently need to import historical data or data from different sources, consider developing a custom solution that automates these imports.

4. Handling Errors in Posting with Historical Rates

If you encounter errors like "There is no Currency Exchange Rate within the filter" when posting transactions with historical dates, this indicates that the required exchange rate for that date is missing.

To resolve this:

  • Ensure that the exchange rate for the transaction’s date is correctly entered in Business Central. This is crucial for transactions dated before the current system usage start date.
  • If you're not conducting revaluations or dealing with open invoices from the past, you can set a single exchange rate with a starting date of 01/01/2000. This approach generally stops errors, provided there’s no need for accurate historical rate conversions.

Conclusion

Handling multiple currencies and their respective historical exchange rates in Dynamics 365 Business Central requires a bit of setup and potentially some manual data entry. By utilizing the tools and features available within Business Central, you can manage both current and historical exchange rates effectively, ensuring financial accuracy across your business operations. For ongoing needs, consider automating the process through custom development or more frequent data imports.

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