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37Pre-requisites: Enabled the GST conversion feature.
Note: AUD is the accounting and reporting currency; GBP is the transaction currency.
- Posted a Free text invoice on 8/07/2021 for 550 GBP (out of which 50 GST)
The rate used for this calculation was 0.4 GBP for 1 AUD - Performed the Foreign currency revaluation on the 31/07/2021.
The following transactions were generated for the GST Payable account using the rate as of 31/07/2021 - Settled GST
- Ran the trial balance after settlement. Only the balance in transaction currency was transferred to the GST settlement account
Based on https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/dual-currency-for-tax, if the tax settlement is not balanced in the reporting currency for certain reason such as the sales tax conversion path is "Accounting currency", or the exchange rate change in a single tax settlement period, then the system will automatically generate accounting entries to adjust the tax amount variance and offset it against realized exchange gain/loss account, which is configured in Ledger setup.
I was hoping that this feature would handle the accounting/reporting currency balance due to foreign currency revaluation as part of the settlement process.
Does anyone currently use the GST conversion feature and can advise how it works?
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