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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Foreign Currency reval...
Microsoft Dynamics AX (Archived)

Foreign Currency revaluation.. Why ?

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Posted on by lally 8

Hi All ,

AX 2012 R3

AX has the Foreign Currency revaluation functionality for Main accounts , Customers , Vendors , I could understand the concept for Customers and vendors as client purchase/sale the materials to other country vendors/customers , so we need to run the revaluation batch job based on the client requirement.

The question is always companies will maintain the main accounts in the Company currency only , then why we need to run the foreign currency revaluation for main accounts ? Any light from pioneers with an example ?

Thanks in advance.

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Foreign Currency revaluation.. Why ?

    Hi lally,

    If you maintain the main accounts in company currency only there is no need to run the foreign currency revaluation for main accounts as no currency adjustment will be posted anyway.

    Regards,

    Ludwig

  • lally Profile Picture
    lally 8 on at
    RE: Foreign Currency revaluation.. Why ?

    Thanks Ludwig ,

    The point is why we need to maintain the company main accounts in foreign currency .. Can you share any example /business requirement ?

  • Suggested answer
    Kartik Kurup Profile Picture
    Kartik Kurup 435 on at
    RE: Foreign Currency revaluation.. Why ?

    Hi Lally,

    As far as I know, there is technically no need to run a reval process for the ledger if the Company currency is standard (only one currency is defined) for the main/GL accounts. 

    I can see a few scenarios where you'd have to run a reval:

    1) The issue arises when there is only one currency defined at the Company level (GL>Setup> Ledger) under accounting currency field and another currency defined under the Reporting Currency field. In this case, you'd have to define exchange rates as on the date of translation. 

    2) The legal entity occasionally or regularly transacts in a foreign currency directly at the GL level i.e. not through subledger.

    3) The legal entity has a foreign currency bank account in addition to their domestic currency bank account, and they have transactions towards them. This means that under best practices, each foreign currency should have a separate GL account.

    4) The legal entity uses multiple currencies to track their budget.

    That's all I can think of right now. Let me know if I have stated anything contradictory or if you have additional points to add.

    Also, in case you are running the reval process, always run the GL reval after AR and AP.

    Hope this helped.

    Thanks.

    Kartik

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