Hello all,
Note: Currency of source company and currency of consolidation company are different
In D365 F&O, when we run monthly consolidation , only the debit or credit of balance sheet accounts gets converted based on the consolidation rate specified in consolidation online page.
But the opening balance amount always remains the same when we run month on month consolidation.
Client requires the total closing balance (opening balance + debit - credit) at the end of the month to be converted based on the consolidation rate in consolidation on line page.
Is it possible to meet client expectation in F&O.
(Example)
| Source company currency |
JPY |
| Consolidation company currency |
USD |
| |
|
| Dec 24 USD/JPY rate |
0.0065 |
| Jan 25 USD/JPY rate |
0.0069 |
| Feb 25 USD/JPY rate |
0.0070 |
| Month |
Source currency |
Source amount (Debit) |
Consolidation currency |
Exchange rate |
Consolidated amount |
| Dec-24 |
JPY |
1000 |
USD |
0.0065 |
6.5 |
| Jan-25 |
JPY |
2000 |
USD |
0.0069 |
13.8 |
| Feb-25 |
JPY |
3000 |
USD |
0.0070 |
21 |
What F&O does
| Month |
Opening balance (USD) |
Debit (USD) |
Credit (USD) |
Closing balance (USD) |
Remark |
| Dec-24 |
0 |
6.5 |
|
6.5 |
1000 JPY*0.0065 = 6.5 USD |
| Jan-25 |
6.5 |
13.8 |
|
20.3 (6.5 + 13.8) |
2000 JPY*0.0069 = 20.3 USD |
| Feb-25 |
20.3 (6.5 + 13.8) |
21 |
|
41.3 (20.3 + 21) |
3000 JPY*0.0070 = 21 USD |
What client expects
Opening balance + movement of each month to be consolidated at the rate for the month
Dec 24
1000 JPY @ exchange rate 0.0065 = 6.5
Jan 25
Opening balance (1000 JPY) + Jan 25 movement (2000 JPY) = 3000 JPY @ exchange rate for Jan 25 (0.0069) = 3000*0.0069 = 20.7 USD
Feb 25
Opening balance (1000 JPY) + Jan 25 movement (2000 JPY) + Feb 25 movement (3000 JPY) = 6000 JPY @ exchange rate for Feb 25 (0.0070) = 42
Sincerely,
Sriram
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