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Ledger settlement of foreign currency adjustments

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Posted on by CU01041518-0

Hi,

I'm currently looking into the process of general ledger foreign currency revaluations in combination with ledger settlements.

I'm testing the following proces for a business with accounting currency EUR:

* Loan received of 17000 USD on 01/01 with rate 1 USD = 2 EUR

* Revaluation on 31/01 1 USD = 1.3333 EUR

* Revaluation on 28/02 1 USD = 1.11111 EUR

* Loan is paid back 04/03 at same rate as 28/02

* Revaluation performed 31/03 1 USD = 0.83333 EUR

Everything seems logical until I want to settle the receipt of the loan and it being paid back.

I'm using the following parameters on the general ledger parameters for ledger settlements:

After the posting of the reimbursement of the loan, I settle the receipt of the loan and the reimbursement. This triggers the system to post a realized gain.

When I perform the revaluation at the end of march, the previous revaluations are reversed for this specific transaction.

However, all revaluation vouchers remain open and unsettled in the ledger settlements page. When trying to settle, I receive the following message:

Could someone tell me where in the process i'm going wrong? Now it seems like these exchange rate adjustment transactions cannot be settled and will remain in the balance at all times.

Thanks in advance!

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Dynamics 365 Finance

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Ramit Paul 22,805 Most Valuable Professional on at

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Hi,

Well articulated!

I want to understand the merit of settling exchange rate gain and loss account.

Ideally these accounts are the result of your settlement and determines your profit or loss after realizing.

I am not clear why you need though, however I would still suggest to raise a MS ticket to get it checked by Product team.

Either this is a bug or this is a design by product.

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CU01041518-0 4 on at

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Hi,

When settling the receipt of the loan with the reimbursement of it, an automatic transaction is posted which posts the realized gain to the balance sheet account:

This transaction, for some reason, does not appear in the ledger settlement screen.

Since we now have a realized gain posted to the balance sheet account, I would like to settle all the unrealized gains as they total to 0 now.

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