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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / XAU as a main currency...
Finance | Project Operations, Human Resources, ...
Answered

XAU as a main currency in Accounting system

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Posted on by Community member 5
Does Microsoft software allow to maintain records in the base currency XAU (gold) with automatic conversion of multi currency transactions?

In other words, here is an example:
In Xero Select, the base currency is USD. Invoices can be issued in any currency (except XAU/XAG/XDR and other synthetic currencies), and the program automatically calculates unrealized and realized currency gain/loss.

So the question is:
Does your software allow to use XAU as the base currency and automatically calculate unrealized and realized currency gain/loss?
  • Verified answer
    BillurSamdancioglu Profile Picture
    BillurSamdancioglu 15,811 Most Valuable Professional on at
    XAU as a main currency in Accounting system
    Hi,
     
    If you create these currencies and then select on ledger as main currency, then the calculation been done in these currencies.
    But you can not change the base currency once selected on ledger and transactions occur.
  • Community member Profile Picture
    Community member 5 on at
    XAU as a main currency in Accounting system
    Andre, I want to find ability to use XAU as a main/reporting currency for doomsday scenario (USD collapses) as a part of Enteprise Risk Management for our company.
     
    Can you please clarify in which program 'Technically it is possible'? and which setting should be done?
     
    Thank you in advance.
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,602 Super User 2024 Season 2 on at
    XAU as a main currency in Accounting system
    Hi,
     
    Can you tell us why you want to use XAU as the base currency? You mentioned that Xero Select has USD as its base currency. Technically it is possible, but I doubt if accountants and auditors will approve this. Depending on the use case, you can set up USD as the base currency and use XAU as reporting currency.
  • Suggested answer
    Hana Xue Profile Picture
    Hana Xue Microsoft Employee on at
    XAU as a main currency in Accounting system
    Hi,
    Finance uses the concept of accounting currency and reporting currency.
    • Accounting currency - This is the monetary unit of measure that is used to record the converted monetary value of economic transactions in ledger accounts. It is also be referred to as the "company" or ledger currency.
    • Reporting currency - The reporting currency is a secondary accounting currency, that measures the converted monetary value of transactions in a secondary currency, often for the purpose of consolidation or reporting to a parent organization.
    In Finance, you can calculate gain/loss for reporting currency only to fully support gain/loss posting during ledger settlement. The accounting currency is used for matching within ledger settlement. The ledger settlement will post a gain/loss for the reporting currency when the accounting amounts are balanced in the accounting currency. This feature can speed up the period-end close process by eliminating the need to manually post the gain/loss in the reporting currency if it has not already been posted.
    The system itself does not directly support XAU as the base currency. Typically, the base currency is the local currency of the country or region in which the organization is located, so in most cases the base currency is a fiat currency (e.g. USD, Euro, etc.). But organizations can develop custom or third-party integrations to meet specific requirements. You can check out the content about currencies.     Lab - Import exchange rates - Training | Microsoft Learn
    Best Regards,
    Hana

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