Automation in Foreign Currency Revaluation

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Foreign currency revaluation is a treasury concept defining the method by which international businesses translate the value of all their foreign currency open accounts – accounts payable and accounts receivable transactions – into the company’s local domestic currency. The theoretical value, or book value, of open transactions in foreign currencies varies over time because of fluctuations in exchange rates. To update the value of open transactions in Accounts payable and Accounts receivable, the companies need to run the foreign currency revaluation process in D365.
Foreign currency revaluation can be run for both Accounts payable and Accounts receivable. The process uses an exchange rate list of currency pairs to revalue the open amounts, or not settled amounts, on a specified date. The differences between the original posted amounts and the revalued amounts cause an unrealized gain or loss for each open transaction. The Accounts payable and Accounts receivable subledgers are then updated to reflect the unrealized gain or loss, and an accounting entry is posted to General ledger based on the setup and configuration that needs to be done before running the currency revaluation process. This process is crucial for correct financial reporting, especially when it comes to international companies where the reporting is done on a monthly basis.

From my experience working directly with the business and the end users part of the finance departments, the foreign currency revaluation is a crucial yet labor-intensive task, especially when it comes to a business model where the company operates in different markets and have transactions in a lot of different currencies.
But now, with Microsoft Dynamics 365 Finance and Operations 10.0.43 version, the users can automate this process and save significant time and effort. With just a one-time setup, the Business Process Automation scheduler will handle the monthly revaluations seamlessly. Say goodbye to manual work and hello to efficiency!

Feature name - Enable process automation for accounts receivable and accounts payable foreign currency revaluation

After enabling this feature, the users can find the 'Foreign currency revaluation' options in both the Accounts Receivable and the Accounts payable module:

When selecting the new option under periodic tasks, the users will see the foreign currency revaluation process automation form will open and here they can create a new process automation for schedule type 'AR foreign currency revaluation':

The process of creating a scheduled type 'AR foreign currency revaluation' is based on a belonging wizard where the users can set up the settings on how to run this functionality.

Following the second step of the wizard, the users will see two new fields related to the process automation:

Number of days adjustment for date of rate: in this field the users can set up the calculation of days in relation to the day that the process automation runs. So, where I set up in the previous step of the wizard that I run this process automation every 20th day of the month, minus 21 means that the last day of the previous month (20th day of the new month -/- 21 days) is the date where the rate needs to be taken from. This is adjustable as per the business requirements and business/regulatory needs.
Number of days adjustment for the date considered: this is the same calculation as in the field described above, but now for the date considered of the Accounts Receivable foreign currency revaluation.

Based on the configuration above, the AR foreign currency revaluation is scheduled.

Key benefits:

Increased Efficiency: Automates repetitive tasks, reducing manual workload
Improved Accuracy: Minimizes errors associated with manual calculations
Timely Revaluations: Ensures regular and timely updates to financial statements
Compliance: Helps maintain compliance with accounting standards and regulations

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Automation in Foreign Currency Revaluation

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