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Dynamics 365 Community / Forums / Microsoft Dynamics NAV (Archived) / Forex difference poste...
Microsoft Dynamics NAV (Archived)

Forex difference posted by system when it shouldn't

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Posted on by Wadiya 22

Microsoft Dynamics Navision auto-post an entry to forex difference when I apply payments from a bank account to a vendor invoice of the same currency, although I posted the payment and invoice in the same month, and in the currencies I set the currency exchange rate for example on 1st January, so I presume that Navision should use that currency exchange rate for rest of the month. and I did not update the currency after that day, the invoice date posted was 27th January. The currency of the invoice and bank were both GBP. How can I fix this error, no currency exchange difference should be posted in such transaction.

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  • CU30070623-1 Profile Picture
    CU30070623-1 16 on at
    Forex difference posted by system when it shouldn't
    To address this issue, you might want to check your system settings and configurations. Ensure that the currency exchange rate you set for GBP on 1st January is still valid and hasn't been inadvertently altered. Additionally, verify that there are no automatic updates or overrides in your system that might be causing this discrepancy.And if you're looking to optimize your Forex trading experience, you might want to explore Forex VPS solutions like the ones at newyorkcityservers.com. They can help streamline your forex activities and keep everything running smoothly.
  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Forex difference posted by system when it shouldn't

    Ahmed,

    You can create a journal entry reversing the GL Accounts posted too for the FOREX. I am guessing the offset should be a Bank Account and the FOREX account. NAV should not produce a FOREX entry if the Invoice Currency Exchange Rate is the same for the Posted Invoice and Posted Payment Journal. I would triple check each entry to make sure the Rate used for the Posted Purchase Invoice and the one in the Payment Journal date.

    Hope this helps.

    Thanks,

    Steve

  • Verified answer
    Wadiya Profile Picture
    Wadiya 22 on at
    RE: Forex difference posted by system when it shouldn't

    Hi

    I managed to solve out this problem that time, and I think it is important to update it here since I get email notifications sometimes of people encountering the same issue.

    As I found out, the reason for the difference was that the document date & the posting date were different. 1 of them had a date falling under a different period affected by a different exchange rate than the one meant to be used. So what the system did is that it posted forex gain/loss for the difference between the forex rate of the document date and posting date. This is what the system did.

    Solution: Just keep the document date the same as the posting date. Or make sure that you update the currency exchange rate for the document 'date' to be the same as the posting 'date' exchange rate.

    This happens mostly when you recieve vendors' invoices this month for example to post but the actual invoice's date is way older.

    I hope this was helpful.

  • Wadiya Profile Picture
    Wadiya 22 on at
    RE: Forex difference posted by system when it shouldn't

    Thank you a lot for the help. 
    After looking into the matter, it turned out that the reason for the incorrectly created forex difference is that the posting date was different from the document date, the user entered the document date as the invoice date, and the posting date as the date they are posting the invoice. Once I aligned both the document date and the invoice date in a newly created invoice, that incorrectly created realized forex difference entry by the system previously did not get posted this time.

    I think that the system does the forex difference calculation based on the document date and payment date, not the posting date and payment date (there are cases when the invoice is created by the vendor long ago but sent to the customer this current month when the exchange rate is different, then ideally the system should post it based on the posting date exchange rate, and when payment is posted and applied on the same date, no forex difference should be picked up) 

    Sorry for the late reply, and thanks again!

  • Hannes Holst Profile Picture
    Hannes Holst 5,767 on at
    RE: Forex difference posted by system when it shouldn't

    Hi,

    FX will be calculated into LCY always.

    And, yes, when the last available FX-rate is from the 1st January, an invoice with the posting date 27th january will pick this up.

    There are fields in the Purchase Header & Purchase Line which are filled when the invoice is created.

    These fields might did contain old information. Updating the Currency Exchange Rates does not update the documents automatically.

    Create a new invoice & payment and give it another try. Make also sure that all your other documents dates are past the date of the exchange rate you want to use.

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