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Use different exchange rate type for foreign currency revaluation in AR/AP

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Posted on by Tony Mok

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As I know, foreign currency revaluation in AR/AP gets default exchange rate type from ledger. How can I get different exchange rate type for calculation by code?

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Juergen Salaboeck 10 on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Hi Tony,

did you find a solution for your problem?

BR

Jürgen
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Ludwig Reinhard Microsoft Employee on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Hi Tony,

Do you know why your client wants to have this?

You can of course make an adjustment for the exchange rate that is used when running foreign currency revaluations but you have to be careful with that because there are a number of related processes (e.g. payments) that will revert back to your adjustment.

This can quickly get tricky and I wonder why this is needed and why the standard functionalities are not sufficient?

Let's make a simplified example.

If you convert an open foreign currency amount of let's say HUF1000 by the D365FO standard exchange rate of let's say 5HUF:1USD then you will get an unrealized exchange rate gain/loss of let's say 50 USD. If you make the payment in the next month, this amount will just be reversed / eliminated.

In case your customer prefers a rate of 5.5HUF:1USD then you might get a unrealized gain/loss of let's say 60 USD. Also this amount gets eliminated when you make the payment in the next month.

So the whole issue is basically about shifting unrealized profit / loss amounts from one month to the other, which does not make you richer or poorer overall because you just shift things from one month to another one.

So, I really wonder for the underlying business requirement.

Would be great if you could explain in more detail before spending a lot of time on an adjustment with a limited added value.

Best regards,

Ludwig
Tony Mok 577 on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Hi Junaid Idrees,

I mean if user A runs some finance processes involving DefaultExchangeRateType, and user B runs foreign currency revaluation which will change DefaultExchangeRateType, then user A will be affected.
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Junaid Idrees on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

This shouldn't be an issue. For example payable guy is booking new invoice/payment in foregin currency and the person who is running currency revaluation he will run on specific dates and also can select the criteria by Customer/Vendor groups.

I usually suggest business users to run currency revaluation end of the week or at month end.
Tony Mok 577 on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Hi Junaid Idrees,

I thought of changing DefaultExchangeRateType of ledger during runtime, but it will affect the user daily operation if someone is doing finance function and another is doing foreign currency revaluation.
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Junaid Idrees on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Hi Tony Mok,

In D365 FO. If an exchange rate type isn't defined on the main account level then system use exchange rate from Ledger screen during foreign currency revaluation. If you want to use different exchange rate type for currency revaluation then you have to do the customization and before you start any code modification think from all prespective as we have currency revaluation function in AP/AR/Bank/GL modules and it impacts accounting and reporting currencies.
Tony Mok 577 on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Hi Ramit Paul,

I am the developer and I can add 2 more field in ledger, but the main point is how to change the logic of choosing the newly added field exchange rate type in foreign currency revaluation instead of original default exchange rate type.
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Ramit Paul 22,473 Most Valuable Professional on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Alright, so from the UI this is not in scope for selecting different exchange rate than the preset exchange rate in system, to meet this requirement, probably you need to talk to your developer for customization if feasible.
Tony Mok 577 on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Hi Ramit Paul,

For AP/AR, MAIN ACCOUNT is not related. Isn't it?

For ledger, as my client still use default exchange rate type for daily, but for foreign currency revaluation, they will use another set of exchange rate type. So, I cannot change default exchange rate type in ledger. I need to change the logic of getting exchange rate type in foreign currency revaluation. But, i have no idea on this.
Ramit Paul 22,473 Most Valuable Professional on at

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RE: Use different exchange rate type for foreign currency revaluation in AR/AP

Okay, I am writing the possibilities where you can add currency exchange rate type

1: You can add two different exchange rate type if your accounting currency and reporting type is different, see below.

2: You can add exchange rate type per account level

3: You can add exchange rate type for financial reporting level form each main account