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2Hi all,
I would like your opinion on the following scenario linked to the realization of FX gains/losses. In this scenario, the legal entity accounting currency is EUR and the reporting currency is GBP.
Step 1 - An outstanding payable exists on a vendor account (1000,00 CHF).
Step 2 - A vendor payment journal is created, and the AP file is generated and submitted. Adjustments are made to allow a GL as offset account (rationale in later steps).
DR: Vendor 1000,00 CHF
CR: Ledger clearing 1000,00 CHF
Step 3 - Business stuff happens. Payment goes through an intermediary and is ultimately recorded at the Bank level in EUR.
Step 4 - Bank transaction is recorded in the system.
DR: Ledger clearing 1070,00 EUR
CR: Bank 1070,00 EUR
Step 5 - Ledger clearing account should be settled. FX gain/losses should be realized and recognized.
DR/CR: ?
CR/CR: ?
What would be the correct approach in Step 5 from a D365 FO perspective? Assume that the advanced ledger functionalities cannot be activated (we identified issues with the awareness feature). Also, assume the following overview for the Ledger clearing account.
| Date | Transaction amount | Transaction currency | Accounting amount | Accounting currency | Reporting amount | Reporting currency |
| 01/01/xx | -1000 | CHF | -1068 | EUR | -914 | GBP |
| 03/01/xx | 1070 | EUR | 1070 | EUR | 915 | GBP |
As a first thought, I would have journalized the entry manually to the FX gain/loss account. However, I realise we would have to enter a non-zero transaction amount in the FX gain/loss account, which is not normally something I would expect. Through every other revaluation/settlement functionality, the transaction amount on that G/L is zero, with deviations posted to the accounting and reporting currency only. I wonder about the wider implications of having a non-zero transaction value on that account (e.g., consolidation).
What would be the recommendation?
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