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Currency Translation using Financial Reporting in D365 F&O

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Posted on by Girish_AX

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While preparing consolidated Balance Sheet (Statement of Assets and Liabilities), one company has invested in the equity capital of the other. The Investing Company currency is INR whereas the Subsidiary Company books are in USD. The Subsidiary Co. received USD and the accounting was done at a transaction rate entered at the transaction level and not from the currency rate master.

Now while we set the Equity Capital account set to Currency Translation = Transaction date, the Financial Reporter considers the rate in the exchange rate table to translate the balance and not the rate entered at the transaction level. This happened when in a data migration, the transaction was entered at the actual rate whereas the rate on that date differs substantially.

Is there a way to set an account to not translate while using the Financial Reporting and maintain it at the entered rate?

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Ludwig Reinhard Microsoft Employee on at

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Hi Girish,

The currency translation options that you have available at the main account level cannot do the translation that you are looking for (=> taking the manually entered exchange rate)

What you can test is whether the financial reporter translation features can help.

Please check out the currency display option in the column structure of your report to see if you can get the right translation by making use of this option.

If you can't then you have to enter a calculated column to get your report data translated in the way you need.

Best regards,

Ludwig

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Girish_AX 191 on at

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Hi Ludwig,

To confirm, the Currency Translation setup at Main Account level will pick rates from the Exchange Rate Master. So if I have set it to Transaction Date, it will pick rate from the rate master as on that date and there is no way to pick the rate from the transaction. Is that correct?

The way around, which you've suggested, is to get the numbers in transaction currency and then convert it using calculation formula within reporter. This may not help fully since the transaction rate is to be used only for equity capital and reserves, whereas all other numbers in the Balance Sheet are translating as expected and need to dynamically change based on the period end rates.

Regards,

Girish Patnekar

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Ludwig Reinhard Microsoft Employee on at

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Good Morning Girish,

My understanding about the manually entered exchange rate in the journal and the exchange rate used for translation in the MR is the same that you have.

Would be great if you could test whether the workaround with the manual translation (calculation) works for you and keep us updated here.

Many thanks and best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Good Morning Girish,

My understanding about the manually entered exchange rate in the journal and the exchange rate used for translation in the MR is the same that you have.

Would be great if you could test whether the workaround with the manual translation (calculation) works for you and keep us updated here.

Many thanks and best regards,

Ludwig

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Girish_AX 191 on at

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Hi Ludwig,

I have tried to test with a scenario where an exchange rate exists in the rate master for a particular currency pair. On that date, the accountant enters a transaction but with a different exchange rate at the transaction level.

Now when we use 'Transaction Date' the system refers to the rate in the Rate table and not the actual rate selected on the transaction.

The other option that you suggested was to handle it in the MR. This may not be feasible in cases where some lines are to be handled at the transaction (manual) rate while others are at the rates from the rate tables..!

I will explore further and post if I get any optimal workarounds.

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Sudheer K 5 on at

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Hi Girish,

We are facing exact same issue, could you please let us know any workaround for this.

Thanks & Regards,

Sudheer Katta.

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OsmanIstanbul 2,818 on at

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Hi,

You can use reporting currency for such consolidated reports. The system will give you exchange rate on the transaction level.

Best

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