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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Multicurrency Exchange...
Finance | Project Operations, Human Resources, ...
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Multicurrency Exchange Gain / Loss

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Posted on by Ramanan 237

Hi All,

Our functional currency is USD and we have configured multicurrency in our financial setup.

Please find below the three transactions we booked and all are in Multi Currency AED with exchange rate 3.6710

  1. JV 1 with debit of AED 1400 which equals to USD 381.37 (1400/3.671 = 381.3674748025061)
  2. JV 2 with credit of AED 700 which equals to USD 190.68 (700/3.671 = 190.6837374012531)
  3. JV 2 with credit of AED 700 which equals to USD 190.68 (700/3.671 = 190.6837374012531))

Now on balance on AED is 0 but in USD it is 0.01.

Is there any utility or routine steps to knock off the rounding difference and take it into exchange gain/loss?

pastedimage1612415409212v1.png      pastedimage1612415423462v2.png

Categories:
Microsoft Dynamics GP
  • Cheryl Waswick Profile Picture
    Cheryl Waswick on at
    RE: Multicurrency Exchange Gain / Loss

    The balances do net to 0.00 in 'Period 0' of the next year, but are carried forward as separate BBF's because they are in different currency ID's in the GL tables.   I can't think of any other way around this due to the different currency ID's,  and exchange rates, unless you would void them and key all the JE's in the functional currency ID so there is no exchange rate difference.  Since they are in period 0, the user should not see these entries.

  • Ramanan Profile Picture
    Ramanan 237 on at
    RE: Multicurrency Exchange Gain / Loss

    Hi,

    I did the manual JV for rounding adjustment, then after year end closing am getting debit and credit balances though technically the balance is zero.

    pastedimage1614856363591v6.png

    As the account has transactions on multicurrency AED and USD and even though it has zero balances system carry foward the net debit and credit to BBF, which we don't want.

    pastedimage1614856263539v5.png

    Any way to avoid it.

  • Gavin Profile Picture
    Gavin 2,339 on at
    RE: Multicurrency Exchange Gain / Loss

    Hi,

    If these were entered in Receivables or Payables and "applied" together the system would automatically create a rounding and post to the exchange rounding account. (i.e. if a Payment for 1400AED was posted and applied to 2 invoices for 700 AED then the system automatically recognises the rounding and posts an adjustment journal)

    However as these are General Journals (I assume this is the case as the screen shot shows them as having a GJ source document) you can't "apply" them together and force GP to create the rounding adjustment. As far as the system is concerned they are 3 independent journals. Therefore in this case you'll need to post a manual journal to the GL account for 0.01 USD and have the opposite entry post to the exchange account.

    Thanks

    Gavin

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