Relational Exchange Rate on Purchase Orders/Invoices

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Posted on by AW-07051152-0

We have been battling for an answer from our BC provider and not really getting anywhere, so would appreciate some other thoughts on this matter

We use FloatRates to update our Currencies on a daily basis - this works fine

We have our Relational Exch. Rate Amount set to 1.0 and also our Relational Adjmt Exch Rate Amt set to 1.0 under the Currency Exchange Rates

We use a Purchase Quote to Purchase Order workflow; receipting against Purchase Orders and then Invoicing at the same stage

Our foreign currency purchase invoices are being converted at the purchase quote creation date and not at the invoice posting date

Any online help is stating that the FX conversion should not be fixed until the invoice posting date and rate at that time, which does not appear to be happening for us

Can anyone help here please?

Thanks

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Dynamics 365 Business Central

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Jeffrey Bulanadi 8,762 on at

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Hi,

You're absolutely right, BC should apply the exchange rate based on the posting date of the invoice, not the quote or order creation date. If the rate is being fixed earlier, it’s likely due to how the currency setup and document flow are configured.

Here’s what to check:

BC assigns the exchange rate at the time a document is created, using the working date and the rate defined in the Currency Exchange Rates table. If the rate is fixed at the quote stage, it will carry through unless manually updated or overridden.

The Fix Exchange Rate Amount field in the Currency Exchange Rates table controls whether the rate can be changed later. If it’s set to “Currency” or “Relational Currency,” users can modify the rate during posting. If it’s set to “Both,” the rate becomes locked and cannot be changed downstream.

In your case, since the Relational Exchange Rate Amount and Relational Adjmt Exch Rate Amt are both set to 1.0, BC may be defaulting to a static rate unless the FloatRates service updates it dynamically and the document is refreshed before posting.

To ensure the correct rate is applied at invoice posting:

Set Fix Exchange Rate Amount to “Currency” or “Relational Currency”

Use the Change Exchange Rate assist edit on the invoice before posting

Confirm that the invoice’s posting date reflects the intended FX rate date

Avoid locking the rate at the quote or order stage unless required by policy

Helpful references:

Update currency exchange rates – Microsoft Docs
Change exchange rate on each journal line – Dynamics Lab
Foreign currency gains and losses – EBS Blog

If you find this helpful, feel free to mark this as the suggested or verified answer.

Cheers
Jeffrey

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YUN ZHU 96,039 Super User 2025 Season 2 on at

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This is standard behavior and requires customization if you want to recalculate based on the posting date before posting.

In addition, the Exchange Rates Adjustment batch is used to adjust these differences, so the exchange rate does not need to be accurate for each document.

Hope this can give you some hints.

Thanks.

ZHU

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Jainam M. Kothari 15,641 Super User 2025 Season 2 on at

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Hello,

You need to ensure the invoice Posting Date is current, review the exchange rate settings, and consider running the Adjust Exchange Rates batch job to correct discrepancies.

May this can help : https://learn.microsoft.com/en-us/dynamics365/business-central/finance-how-update-currencies

https://ebs.com.au/blog/foreign-currency-gains-and-losses-in-microsoft-business-central

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Sohail Ahmed 11,154 Super User 2025 Season 2 on at

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In standard Business Central, the exchange rate on purchase invoices is taken from the purchase order, not refreshed automatically at invoice posting. To apply the current rate at posting, you'll need a customization.

You should contact your Microsoft partner to adjust this logic as it's not handled by standard functionality.

✅ Mark this answer as verified if it helps you.

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