Ledger Settlement - Exchange Rate Differences

(0) Share

Report

Posted on by Mohammed_Saad

Hello My Friends,

I have Two transaction For ledger account Is Called long term loan ,the first for the creation of loan and the second for the payment ,loan in US Dollar(Transaction Currency),I want to settle the loan against the payment ,My Problem in Accounting currency is not balanced because Exchange rate for loan is 3.75 and Exchange rate for Payment is 3.751 , Difference is 157.75 I Tried Foreign currency revaluation for the account to include it in the settlement, but it's giving me the Total value for all revaluation(for all transactions) in one line not for each transaction and I Can't split this value, how cant i fix it ? any one can advise me ?

notice:

Transaction Currency US Dollar

Accounting Currency Saudi Riyal

thanks in advance.

3771.Capture2.JPG

I have the same question (0)

All responses (9)

Answers (1)

André Arnaud de Cal... 299,399 Super User 2025 Season 2 on at

Like (1)

Report

RE: Ledger Settlement - Exchange Rate Differences

Hi Mohammed,

Is there a difference in the reporting currency or the accounting currency? Can you show what exact revaluation was posted against what exchange rate?

Was this reply helpful? Yes No
Mohammed_Saad 26 on at

Like (0)

Report

RE: Ledger Settlement - Exchange Rate Differences

Hi André,

Yes,Accounting currency ,revaluation has been posted based on 3.751

the creation of loan has been done on 3.75

the payment has been done on 3.751

Was this reply helpful? Yes No
Ludwig Reinhard Microsoft Employee on at

Like (1)

Report

RE: Ledger Settlement - Exchange Rate Differences

Hi Mohammed,

Is the loan is tracked in a main account only?

The exchange rate revaluation is that posted as an unrealized loss?

Can you share the voucher for the exchange rate revaluation?

Best regards,

Ludwig

Was this reply helpful? Yes No
Mohammed_Saad 26 on at

Like (0)

Report

RE: Ledger Settlement - Exchange Rate Differences

Hi Ludwig,

Was this reply helpful? Yes No
Ludwig Reinhard Microsoft Employee on at

Like (1)

Report

RE: Ledger Settlement - Exchange Rate Differences

Hi Mohammed,

The FX loss is posted to the unrealized loss account.

Is that right for you?

Do you differentiate between realized and unrealized gains/losses?

Best regards,

Ludwig

Was this reply helpful? Yes No
Mohammed_Saad 26 on at

Like (0)

Report

RE: Ledger Settlement - Exchange Rate Differences

yes,it's posted to unrealized loss account.

yes ,i have separate account for the realized gains/losses ,after settlement the unrealized will be closed and the transaction will go direct to the realized account

Was this reply helpful? Yes No
Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

RE: Ledger Settlement - Exchange Rate Differences

Hi Mohammed,

I don't think that this applies for GL FX gains/losses recorded.

Have you tested this in a different demo/test system?

Best regards,

Ludwig

Was this reply helpful? Yes No
Sandesh boloor 88 on at

Like (0)

Report

RE: Ledger Settlement - Exchange Rate Differences

Hi All,

I know I am replying to the old thread, But still this remains valid for me as well.

There is a new feature https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/awareness-between-ledger-settlement-year-end-close "Awareness between ledger settlement and year-end close" functionality. When we read this and try to apply it doesn't make any sense in using the ledger settlement functionality as the settlement is done based on the "Accounting currency" instead of "Amount in Transaction currency".

Very practical example, If a transaction is posted on 01 Jan 2023 with Transaction currency as 1,000.00 EUR, Accounting currency 800.00 GBP and Reporting currency 1,351.35 USD with exchange rate between EUR to GBP is 80.00 and EUR to USD is 74 (Conversion factor is 100). Assume another transaction is posted to offset the 01 Jan 2022 on "15 Jan 2023" with Transaction currency as -1,000.00 EUR, Accounting currency -830.00 GBP and Reporting currency -1,428.57 USD with exchange rate between EUR to GBP is 83.00 and EUR to USD is 70 (Conversion factor is 100).

In the above example if we try to settle the transactions then system is summing the Accounting currency and the difference is 30. GBP, hence system is not allowing to do the settlement. If system had done the summing on the Transaction currency then there wouldn't be any difference and would you settled the transaction.

Not sure if there is any legitimate reason why Microsoft have developed the logic in such way?

Was this reply helpful? Yes No
BillurSamdancioglu 19,197 Most Valuable Professional on at

Like (2)

Report

RE: Ledger Settlement - Exchange Rate Differences

Hi,

Yes this is a common need but still not applied in the system .

There are couple of ideas for this in Ideas portal.

You may vote for.

Was this reply helpful? Yes No