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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Transactions on exchan...
Finance | Project Operations, Human Resources, ...
Suggested answer

Transactions on exchange rate gain/loss accounts without dimensions?

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Posted on by JuleWergne 2

Hi all!

When reviewing the exchange rate gain/loss accounts, we have found some transactions with and without financial dimensions, that were posted automatically by AX (AX2012 R3 Version).

Untill now we have not used actually the currency revaluation function in AX; so I suppose, those transactions were generarted automatically.

I wonder, if there some parameter in AX, that controls, if such transactions are generated or not?

and what can be the reason that some of them are without fin.dimensions? (the accounts are set up correctly in account structures).

 

Thank you in advance!

Best regards.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Transactions on exchange rate gain/loss accounts without dimensions?

    Hi JuleWergne,

    Let's try making a 'typical' example.

    When you post an invoice, your create accounting entries in the following form:

    Debit: Accounts Receivable Account

    Credit: Sales revenue account & findims

    Most of the time the debit transaction that is made on a balance sheet account is made without special financial dimensions, such as cost centers, etc.

    When the invoice is paid then a transaction in the following form is posted

    Debit: Bank/Cash

    Credit: Accounts Receivable account

    In case a cash discount is taken or a foreign currency gain/loss arises then there is usually no findim such as a cost center posted with this transaction.

    That is because AX has nothing to inherit this transaction from - remember that the AR account was not posted with a findim (cost center in my example).

    Does that help explaining your issue?

    Best regards,

    Ludwig

  • JuleWergne Profile Picture
    JuleWergne 2 on at
    RE: Transactions on exchange rate gain/loss accounts without dimensions?

    Hi Ludwig, hi Momen,

    you are right, the transactions are related to customer or vendor payments: a couple of examples that I viewed were e.g. invoices in USD and we make payment in EUR.

    Still, I don't quite understand: why AX generates these transactions without fin.dimensions?

    (if we speek not about manual generated currency revaluation, but about  transactions, which occur at the time of settling transactions with foreign currency). The original invoices are all with fin.dimensions.

    Do you have idea?

    Thank you!

  • Suggested answer
    MM-20051452-0 Profile Picture
    MM-20051452-0 on at
    RE: Transactions on exchange rate gain/loss accounts without dimensions?

    Hi Jule, 

    foreign currency exchange rate transactions occur also at the time of settling transactions with foreign currency for example (payment against invoices). And there is no option to turn off the exchange rate gain or less transaction unless you post all your transactions using the same as your legal entity currency and/or did not change your exchange rate at all and/or did not settle any of your transactions, which we do not recommend as it will lead to wrong bookings and reports. 

    Best regards, 

    Momen Mansour

    [quote user="JuleWergne"]

    Hi all!

    When reviewing the exchange rate gain/loss accounts, we have found some transactions with and without financial dimensions, that were posted automatically by AX (AX2012 R3 Version).

    Untill now we have not used actually the currency revaluation function in AX; so I suppose, those transactions were generarted automatically.

    I wonder, if there some parameter in AX, that controls, if such transactions are generated or not?

    and what can be the reason that some of them are without fin.dimensions? (the accounts are set up correctly in account structures).

     

    Thank you in advance!

    Best regards.

    [/quote]
  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Transactions on exchange rate gain/loss accounts without dimensions?

    Hi JuleWergne,

    Is it possible that those transactions are related to customer or vendor payments that have been made for invoices in foreign currency?

    Based on what you write that is what I would suspect.

    Can you check the transaction origin and origin of the vouchers?

    Best regards,

    Ludwig

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