Understanding Exchange Rate Accounts in “Accounts for Automatic Transactions”

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Posted on by CU22110116-1

Hi,

I understand that Accounts for automatic transactions are system accounts that can also be configured through the posting profiles of each module. However, some accounts—such as Error account and Penny difference—can only be configured here.

My question is about the accounts Exchange rate gain and Exchange rate loss that appear in Accounts for automatic transactions. Are these the same accounts that are configured in the ledger for Realized gain and Realized loss during the foreign currency revaluation process? Or do they serve a different purpose?

Could someone clarify the difference between these accounts and how Dynamics 365 uses each of them?

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Dynamics 365 Finance

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H.M.Burhan 215 on at

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Understanding Exchange Rate Accounts in “Accounts for Automatic Transactions”

Hi,

Normally, this setup form is used to configure the posting profile for accounts that are generated after clicking Create default types, such as Penny difference in accounting currency. However, the best practice is to configure posting profiles in their relevant forms. In your case, the Exchange Rate Gain and Loss accounts should be set up in the Ledger form.

However, if those accounts are not set up in the Ledger form and you configure the Exchange Rate Gain and Loss accounts under Accounts for automatic transactions, then the system will pick the account from this form and post the entries without generating an error.

For the second part of your question—which accounts need to be set up under Accounts for automatic transactions?These should be the same accounts that you intend to configure in the relevant posting profile setup.

Further details can be found in the Microsoft documentation.

https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/accounts-for-auto-transactions

Additionally, you can find Recomended practise for the posting profile setup in the following documentation.

https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/recommended-practices-pstg-prfles

Cheers,

Burhan

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