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Currency Revaluation

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Posted on by Dv Acuma

Hi All,

As the year is about to end, I'm just wondering if there is a feature in the business central dynamics that automatically perform a currency revaluation each quarter? We have multiple currency bank accounts in which 3 are in foreign bank accounts. I'm just wondering if a currency revaluation through the system is possible.

Thank you in advance!

Regards,

Lawrence

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Financial Management

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Gavin 2,337 on at

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RE: Currency Revaluation

Hi,

That's great news. Thanks for the kind words :). Glad you've managed to get to the bottom of the issue.

Thanks

Gavin
Dv Acuma 34 on at

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RE: Currency Revaluation

Hi Gavin,

So, I've been putting the wrong information in the wrong column, that's why I'm getting the incorrect revaluation value, but I've finally got the gist of it, thanks to you! I appreciate you taking the time to explain this to me; our support has been pretty much useless after taking our money! We should be paying you instead! Lol. Anyway, thank you very much for thoroughly explaining this matter to me. I appreciate it!

Have a great week ahead!

Regards,

Lawrence
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Gavin 2,337 on at

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RE: Currency Revaluation

Hi,

Its difficult to comment without seeing your exact figures so below is a worked example from my demo system.

I created a new EURO Bank Account (my LCY currency is GBP)

I then posted these 3 transactions:

Therefore, my bank account balance is €600 with a GBP equivalent of £516, (GBP is my LCY currency)

I then added the exchange rate for 30/11/22 of 1.5 to the currencies table ready for the revaluation.

I then ran the Adjust Exchange Rate using the options below

This produced the following adjustment:

The GL Entries are:

As you can see the system has posted an adjustment of £116.00 which is correct. (the GBP balance at a rate of 1.5 should be £400 so the system posts an adjustment of £116)

Therefore, check the running balance LCY in the bank account ledger entries after you have ran the revaluation.

Please note its only the bank account ledger entries that the system uses to calculate the adjustment. It doesnt look at the GL entries as this doesnt hold any foreign currency amounts. (other than reporting currency which is something different)

Hope this helps you figure out what's happening on your system.

Thanks

Gavin
Dv Acuma 34 on at

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RE: Currency Revaluation

Hi,

Thank you very much for answering my questions!

However, I am now a bit more confused. So tried doing this to a practice company and I filed out the relevant currencies needed for the revaluation. I was able to run the revaluation (I only did it to the GBP bank account) and the value that the system generated is different to the balance sheet rate that I computed ahead of this. Oddly enough, it was off by about 6-7k. That's why I am a bit confused with how the system actually computes the revaluation.

My way of computing the balance sheet rate is:

End of the month rate (as per our central bank)

Multiply by: Ending Foreign Currency Running Balance as per the bank statement

Thanks

Lawrence
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Gavin 2,337 on at

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RE: Currency Revaluation

Hi,

When you post via "Adjust Exchange Rates" I dont think you can reverse the G/L Register but you could try this by going to the "G/L Register" page and selecting the G/L register that was created and testng this. However if not, you can just rerun the "Adjust Exchange Rate" batch job again with the correct rate and adjustments will be posted automatically.

With regards the rate, the system will use the rate entered in the exchange rate pages and adjust based on the filters in the "Adjust Exchange Rate" batch job. Its worth noting only the Customer, Vendor or Bank ledger entries are adjusted as these entry tables hold both the LCY and multi-currency values for the transaction. As only LCY values are stored in the General Ledger Entries table you can't revalue GL codes. (you can have one additional reporting currency but that is slightly different)

I always find its best to test this particular routine in a practice company to ensure you're happy with how its all working.

Hope this helps.

Thanks

Gavin

P.S Allowing a GL revaluation is posted on the MS ideas site here experience.dynamics.com/.../
Dv Acuma 34 on at

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RE: Currency Revaluation

Thanks! It is such a helpful website, just a last one; if ever the need arises, is there a way I can reverse the revaluation entry? How does the system compute what value it will put as a currency revaluation? Does it get the balance sheet rate and adjust the current amount accordingly?
Gavin 2,337 on at

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RE: Currency Revaluation

Hi,

I wrote this blog on the various fields which hopefully explains about the difference between relational and exchange rate amount fields.

thedynamicsexplorer.com/.../

Hope this helps.

Thanks

Gavin
Dv Acuma 34 on at

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RE: Currency Revaluation

Hi,

First of all, thank you so much for responding to this so quickly.

I have one question though, what is the difference between, Exchange rate amount, relational exchange rate amount, and adjustment exchange rate amount. I'm a bit confused by this.

Thanks!,

Lawrence
Gavin 2,337 on at

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RE: Currency Revaluation

Hi,

Yes. You need to run the "Adjust Exchange Rates" batch job and select "Bank Accounts"

Just ensure you have the correct adjustment rates entered for each of the "Currencies".

Hope this helps.

Thanks

Gavin