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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Exchange Rate issue
Finance | Project Operations, Human Resources, ...
Answered

Exchange Rate issue

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Posted on by Ramit Paul 22,797 Most Valuable Professional

Dear Experts,

I have a case and I need your suggestion for the below.

I am configuring a new legal entity and have a vendor Bangladesh and Currency BDT.

Accounting Currency is INR and Reporting Currency is EUR.

I have paired with INT to BDT and INR to EUR, hence this will work but why system asking for BDT to EUR?

Any other confg is missing ?

SRT.PNG

I have the same question (0)
  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Ramit,

    Do you have an exchange rate type for the reporting currency setup and does this setup include the BDT-EUR exchange rate?

    Best regards,

    Ludwig

  • Ramit Paul Profile Picture
    Ramit Paul 22,797 Most Valuable Professional on at

    Hi Ludwig,

    Thank you for your answer.

    Yes, my accounting currency exch rate type and reporting type is same and there I did not setup BDT to EUR.

    But I am trying to understand, why do we need that, because I have INR to EUR and BDT to INR.

    Wont this work, because we have somehow mapping between INR to EUR and BDT to INR.

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Ramit,

    Theoretically, you are correct that one could calculate the cross rate between BDT and EUR based on the other rates that you have setup.

    Yet, the financial markets are different and not always as perfect as that.

    Some people even make money out of that by 'exploiting' minor differences in cross rates; that's called arbitrage / arbitrage trading.

    So, I think D365FO is correct here not to calculate the cross rates automatically.

    On the other hand, you are also correct when you expect Dynamics calculating this cross rate because for almost all 'normal' companies those cross rate differences should be negligible.

    Best regards,

    Ludwig

  • Ramit Paul Profile Picture
    Ramit Paul 22,797 Most Valuable Professional on at

    Alright, fair enough.

    Does that mean (from product point of view) in Dynamics we need to have two pair for a single currency?

    Like, here in my case, I have BDT to INR and EUR to INR, and also I need BDT to EUR?

  • Verified answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 301,069 Super User 2025 Season 2 on at

    Hi Ramit,

    Ludwig is correct here. Indeed, the reporting currency also needs his own currency pair. I don't know if you have setup exchange rate services and which you are using. Some exchange rate providers do provide currency pairs for multiple base currencies.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Ramit,

    Right. You need some kind of - let's call it 'additional' setup :-)

    Best regards,

    Ludwig

  • Ramit Paul Profile Picture
    Ramit Paul 22,797 Most Valuable Professional on at

    Thank you Ludwig and Andre, appreciate your input here.

    I understood the concept now, thanks again.

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