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Currency Exchange Issue

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Posted on by Jack Carter

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Hi Community, We are facing an issue in our Business Central setup related to currency exchange rates. Our local currency is set as US Dollar (USD), and the additional currency is set as Canadian Dollar (CAD). To maintain the exchange rates, we update the currency exchange rates at the end of each month and then run the "Adjust Exchange Rates" functionality. However, after running the adjustment for this month, we noticed a discrepancy in one of our chart of accounts, specifically a G/L account for one of our banks. The issue is as follows:

1.The balance in the local currency (USD) shows as a positive amount.

2.The balance in the additional currency (CAD) shows as a negative amount.

3.The difference between the two balances is significant and appears to be incorrect.

We have checked and verified the exchange rates and their adjustments, but the discrepancy still persists. Could anyone help us identify the cause of this issue and suggest a way to resolve it?

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Dynamics 365 Business Central

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Yi Yong 2,563 Super User 2025 Season 2 on at

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Hello,

Can you provide more information?

You are showing the revenue G/L accounts and these are credit by nature.

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Jack Carter 110 on at

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@Yi Yong
Hi Community, We are facing an issue in our Business Central setup related to currency exchange rates. Our local currency is set as US Dollar (USD), and the additional currency is set as Canadian Dollar (CAD). To maintain the exchange rates, we update the currency exchange rates at the end of each month and then run the "Adjust Exchange Rates" functionality. However, after running the adjustment for this month, we noticed a discrepancy in one of our chart of accounts, specifically a G/L account for one of our banks. The issue is as follows:

1.The balance in the local currency (USD) shows as a positive amount.

2.The balance in the additional currency (CAD) shows as a negative amount.

3.The difference between the two balances is significant and appears to be incorrect.

We have checked and verified the exchange rates and their adjustments, but the discrepancy still persists. Could anyone help us identify the cause of this issue and suggest a way to resolve it?

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Gerardo Rentería Ga... 25,367 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Set up bank accounts - Business Central | Microsoft Learn

With foreign currency bank accounts, direct posting results in differences that accumulate as you post more bank reconciliations.

Best Regards
Gerardo

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YUN ZHU 95,739 Super User 2025 Season 2 on at

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This is hard to tell, you can export all the details to compare.

If the difference is large, the possibility of manual posting cannot be ruled out.

Hope this can give you some hints.

Thanks.

ZHU

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Jainam M. Kothari 15,639 Super User 2025 Season 2 on at

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Hello,

May be this can help you : https://usedynamics.com/business-central/finance/exchange-rate-adjust/

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Valentin Castravet 31,485 Super User 2025 Season 2 on at

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When you ran Exchange Rates Adjustment function, did you select the option to adjust additional reporting currency?

When you mentioned you checked the exchange rates used, did you check the adjustment column (highlighted yellow below):

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Khushbu Rajvi. 20,614 Super User 2025 Season 2 on at

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Hope this helps you as well: https://learn.microsoft.com/en-us/training/modules/adjust-exchange-rates-dynamics-365-business-central/

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