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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Adjust exchange rate
Small and medium business | Business Central, N...
Answered

Adjust exchange rate

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Posted on 31 Mar 2025 15:33:26 by Alex_Ste 154
Does anyone  know the logic with BC  generates the GL entries movements of the exchange rate adjustment? Let me explain: in the face of n movements of detailed customer ledger entries  it generates only one GL entry record, which is the logic of the  merging?
Regards
Alessandro
Categories:
Dynamics 365 Business Central
  • Suggested answer
    Mansi Soni Profile Picture
    Mansi Soni 1,671 on 31 Mar 2025 at 16:03:07
    Adjust exchange rate
    Hello, In Business Central, the Exchange Rate Adjustment process consolidates detailed customer, vendor, and bank ledger entries into a single G/L entry based on currency, account type, and related G/L accounts. Instead of posting an individual adjustment for each transaction, the system groups adjustments by currency and account type, then summarizes the total exchange rate gain or loss for the period. This prevents excessive G/L entries while maintaining accurate financial reporting.

    The summarized adjustment is then posted to the Exchange Rate Gain/Loss accounts as defined in the General Ledger Setup, while individual detailed ledger entries are updated with the adjusted amounts. This logic ensures financial accuracy while optimizing G/L postings.

    For more details you can refer to below link

    https://learn.microsoft.com/en-us/dynamics365/business-central/finance-how-update-currencies

    Hope this answer will help you!

    Regards,
    Mansi Soni
  • Verified answer
    Khushbu Rajvi. Profile Picture
    Khushbu Rajvi. 12,667 Super User 2025 Season 1 on 31 Mar 2025 at 15:58:34
    Adjust exchange rate
    Business Central merges exchange rate adjustments into a single GL entry by grouping transactions based on Currency Code and Customer/Vendor Posting Group. Instead of posting separate adjustments for each customer ledger entry, it calculates the total adjustment per currency and posts a summarized entry to the Receivables/Payables Account and the Exchange Rate Adjustment Account. This simplifies financial reporting and avoids excessive GL postings while maintaining detailed adjustments in the Customer/Vendor Ledger Entries.
  • Suggested answer
    Saif Ali Sabri Profile Picture
    Saif Ali Sabri 1,559 Super User 2025 Season 1 on 31 Mar 2025 at 15:53:27
    Adjust exchange rate
    In Business Central, the Exchange Rate Adjustment process merges detailed customer/vendor ledger entries into a single G/L entry per currency and account combination. The logic behind this merging is:
     
    1. Grouping by Currency & Account – Adjustments for the same currency and G/L account are summed up.
     
    2. One Entry per Currency per Account – Instead of multiple detailed entries, BC posts a single consolidated G/L entry for the total adjustment amount.
     
    3. Posting Date Basis – The adjustment is posted based on the date of the exchange rate adjustment run, not individual transaction dates.
     
    4. Adjustment Type – It adjusts open entries based on the difference between historical and current exchange rates.
     
    This approach reduces G/L clutter while ensuring accurate financial reporting.

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