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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Project Budgeting in d...
Microsoft Dynamics AX (Archived)

Project Budgeting in different currency

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Posted on by KrishnaKranth 85

Dear All,

I have a scenario where the legal entity's accounting currency is INR and a project is created with project contract in USD. I need to activate Project Budget on the same Project in USD. However when I approve the budget, system automatically considers the amount in INR which is my accounting currency.

Please suggest a work around or am I missing something here?

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Project Budgeting in different currency

    Hi KrishnaKranth,

    I was hoping that they have an AX company setup for their US business in which case you could have made use of the intercompany project functionalities.

    Isn't it an option to track all your budgets in INR?

    I am asking this because the control forms do an automatic currency conversion. That is, even if you invoice your customer in USD, the control forms with translate that amount into INR and compare it with the costs that you have in INR.

    Have you thought about transferring your project budget data into the budgeting module?

    In the budgeting module you have access to the currency field and can track your sales and revenue budget in USD.

    The actual-budget comparison in INR can then be done from the Project module and the actual-budget comparison in USD from the budgeting module and/or Management Reporter. Wouldn't that be a feasible 'workaround'?

    Ludwig

  • KrishnaKranth Profile Picture
    KrishnaKranth 85 on at
    RE: Project Budgeting in different currency

    Hi Ludwig Reinhard

    Yes the client sends people from India to execute the project in US. They are paid local transport expenses, food related in USD during the period of the project. Its a single entity set up. The client employees are sent on sub-contract basis so as such the client doesn't maintain US business as different legal entity.

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Project Budgeting in different currency

    Hi KrishnaKranth,

    The costs of a project are always recorded in the local accounting currency - in your case INR - because the assumption is that the actual costs are paid locally and consequently also the budget needs to be tracked in local currency.

    Is the project then run with people that are located in the US-branch of your customer or do you fly your people in from India into the US to execute the project there?

    And do you have a special AX-company setup for the US-business of your customer?

    Best regards,

    Ludwig

  • KrishnaKranth Profile Picture
    KrishnaKranth 85 on at
    RE: Project Budgeting in different currency

    Hi Ludwig,

    This is for Cost Budget.

    As the project will be executed from US most of the expenses incurred against the project will be either in USD or EUR. So my client needs to have cost budget in USD. Invoicing to the customer will be in USD only.

    Regards

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Project Budgeting in different currency

    Hi KrishnaKranth,

    Are you talking about the cost or the revenue budget or both?

    Where do the costs for the budget that your record arise in India or in the US?

    If all of your costs arise in India and if you pay your employees Indian Ruppes, I would expect that also the cost budget is recorded in Indian Rupees.

    For the revenue budget this might be different and depends on the agreement that you have with the customer.

    Is it possible that you provide us some additional information on

    (a) the invoicing currency that has been agreed upon with the customer

    (b) whether your costs arise in INR or in USD

    (c) any other Information that you can provide regarding the Project in regards to the currency and budgeting issue.

    Many thanks,

    Ludwig

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