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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / How to close LCY-only ...
Small and medium business | Business Central, N...
Suggested Answer

How to close LCY-only Customer Ledger adjustment entries?

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Posted on by CU29070502-2 30

Our LCY is GBP and customer transactions are in EUR. Due to incorrect historical currency factors, we posted LCY-only adjustment entries through the Customer account to correct the Customer Ledger and AR balance.

The original EUR invoices are already fully applied to payments, and the bank is reconciled. Therefore, the new LCY adjustment entries remain open.

How can we close/apply these adjustment entries without unapplying the original invoices/payments, affecting the EUR balances, or disturbing the bank reconciliation?

Categories:
Microsoft Dynamics NAV
Dynamics 365 Business Central
  • CU02090542-0 Profile Picture
    CU02090542-0 2 on at

    To close open LCY-only customer adjustment entries without unapplying settled EUR invoices or impacting bank reconciliations, post a zero-amount transaction using a Payment or Cash Receipt Journal. Select the customer account, leave both the EUR and LCY journal line amounts set to zero, and use the **Apply Entries** feature to link and offset the open LCY adjustment records against each other. When you post the journal, the entries will be marked as Closed in the Customer Ledger without generating general ledger movements, altering EUR balances, or affecting bank ledger accounts. 

  • Suggested answer
    Ahmad Subhani Profile Picture
    Ahmad Subhani 794 on at

    Solution: Apply the LCY adjustment entries only against each other (not the original invoices/payments), via Customer Ledger Entries → Actions → Application → Apply Entries, assigning the same Applies-to ID to just those correction entries, then Post Application once Balance = 0.00.

    If they don't net to zero, post a small offsetting LCY journal line (Currency Code blank) against the customer to clear the residual, then apply/post it the same way.

    Since Amount (FCY) = 0 on these entries, this won't touch EUR balances or bank reconciliation — just verify no unexpected realized gain/loss lines appear in G/L Entries after posting.

  • CU29070502-2 Profile Picture
    CU29070502-2 30 on at

    @CU02090542-0 We tried but it's not allowing to post as it's asking for a balancing account.

    @Ahmad Subhani when we try applying against each other then the net amount is becoming higher. What's the solution in that case.

  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 2,746 Super User 2026 Season 1 on at

    Hello,

    You should create a new LCY-only entry to Credit the Customer Ledger and Debit the AR G/L Account (Customer Posting Group) with the same amount as the original LCY-only adjustment entries.

    Then apply it to the LCY-only adjustment entries.

     

    This way, the adjustment entries will be offset and no net-change to the financial statement.

     

  • CU29070502-2 Profile Picture
    CU29070502-2 30 on at

    @Yi Yong That would negate the correction we want to pass for the affected GLs. 

  • Suggested answer
    AndrewThomas81 Profile Picture
    AndrewThomas81 2,717 Super User 2026 Season 2 on at

    I would try posting a new entry for the adjustment amount in LCY so that it fully matches off, and use the realised gains/losses account as the balancing account

     

    Kind Regards

     

    Andrew Thomas FCCA MCP

    YouTube - Use Business Central

    LinkedIn

  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 2,746 Super User 2026 Season 1 on at

    Hello,

    Do you mind showing the invoice entries and the adjustment entries made?

    Also, if you are not reversing the original invoice then you will need to manually calculate the realized gain/losses. So whatever adjustment you made, need to be negate(reverse) and post into realized gain/losses.

  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 19,350 Super User 2026 Season 2 on at

    Hello ,

    In standard Business Central, you cannot close an isolated LCY Customer Ledger Entry without applying it to another open customer entry of the opposite sign; the Apply Customer Entries page only works with open entries, so because the original EUR invoices/payments are already fully applied, there is nothing available to close these new GBP adjustments against. Posting an opposite GBP customer entry would close them, but it would also reverse the AR/customer correction you were trying to preserve. Also, Adjust Exchange Rates will not solve this retrospectively because Microsoft states that it processes open customer/vendor ledger entries only. Therefore, if the LCY values in the customer subledger genuinely need correction, the standard supported approach is to unapply the relevant EUR invoice/payment, correct the exchange-rate setup, make the required adjustment/reapply, and then reapply the entries; unapplying the customer application is different from reversing the bank payment, so you normally don't need to undo the bank reconciliation itself. If only a financial G/L correction is required, consider a controlled G/L correction instead, but don't use it to artificially reconcile the Customer Ledger because that can create a subledger-to-AR control-account difference. 

    Regards,
    Oussama Sabbouh

  • Suggested answer
    Grigorios Mavrogeorgis Profile Picture
    Grigorios Mavrogeorgis 3,363 Super User 2026 Season 2 on at

    Hi, don't need to touch the original invoices at all. Applications are independent of each other, so as long as the adjustment entries are applied only among themselves, the EUR invoices and the bank stay exactly as they are.

    If the adjustments went in as pairs, debit and credit, just open Customer Ledger Entries, Apply Entries, tick the two and Post Application. 

    If it's one-sided, post an offsetting entry in the general journal on the same customer, balancing to the correction account you already used, then apply that pair together. 

    Try to avoid  applying an LCY adjustment against a EUR invoice. That throws realised gain/loss and starts moving your currency balances.

    Glad to help - follow up if anything is unclear.   

    â–º  If this solved it, marking it verified helps others too.       

    Regards,
    Grigorios Mavrogeorgis
    Business Central Consultant & AL Developer

    Work: Gmsoft Limited
    Blog:  insidebusinesscentral
    LinkedIn: linkedin.com/in/gregorymavrogeorgis

  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 103,085 Super User 2026 Season 2 on at

    Hi, as far as I know, this is a standard feature in the current version.

    Thanks.

    ZHU

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