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Consolidation company and Exchange rates

Posted on by 89

Hello everybody,

How to determine exchange rate when running function of consolidation?

I am trying to run a consolidation in a US company, its local currency is in USD Dollars and the business unit to consolidate is in AUD Dollars.

The period to consolidate is 6/30/2020 and its currency exchange rate is 1.45.

pastedimage1664983357773v1.png

 But when I run the consolidation, it takes a different currency exchange rate

pastedimage1664983526466v2.png

Does anyone know why is this happening?

Regards.

  • AD-22040756-1 Profile Picture
    AD-22040756-1 624 on at
    RE: Consolidation company and Exchange rates

    Please go to your Currencies page -> Currency Exchange Rates and change the Fix Exchange Rate Amount field to Currency. Then go back to the Business Unit -> Change Exchange Rate and you will be able to overwrite the Exchange Rate Amount of 1.54554

    The Fix Exchange Rate Amount field controls what field you can edit/overwrite - the Exchange Rate Amount or the Relational Exch. Rate Amount. 

    pastedimage1664990925610v2.png

    pastedimage1664991084921v3.png

  • Nicolas Payan Profile Picture
    Nicolas Payan 89 on at
    RE: Consolidation company and Exchange rates

    Hello,

    Indeed, when I look at the closing rate, this value is displayed, where should I change it?

    pastedimage1664988222221v1.png

    "Also, are you consolidating directly in your USD company? It sounds like you are. Best practice is to create a 3rd consolidated company. You will then consolidate both the USD and AUD companies into the consolidated company. "

    Answer: That is exactly what I am doing, the hole process is that I have two environments, one for the US companies and another one for AUS companies, I need to consolidated everything in the US Environment, Here's a picture of the process

    pastedimage1664988196312v1.png

  • Suggested answer
    Amit_Sharma Profile Picture
    Amit_Sharma 2,545 on at
    RE: Consolidation company and Exchange rates

    Hi,

    Refer the below link

    https://learn.microsoft.com/en-us/dynamics365/business-central/finance-consolidated-company-reporting

    Regards

    Amit Sharma

    www.erpconsultors.com

  • AD-22040756-1 Profile Picture
    AD-22040756-1 624 on at
    RE: Consolidation company and Exchange rates

    You have to update the exchange rates the consolidation will use on the Business Unit. Typically you will have to update the Average and Closing rates.

    The Last Closing Rate is automatically updated by the system and you should only change if you are re-doing a consolidation in a previously consolidated month. I bet if you look at the Closing Rate in here you will see your 1.54155 rate. 

    pastedimage1664983919859v1.png

    In your screenshot you have the Currency Exchange Rates Page, the system will only use the rates from this page for G/L Accounts with the Consol. Translation Type Historical. And the source of the table (consolidated company or subsidiary) also depends on your setup in the Business Unit Card -> Currency Exchange Rate Table Field where you can select Local (to use the table from the consolidated company) or Business Unit (to use the table from the subsidiary being consolidated)

    Also, are you consolidating directly in your USD company? It sounds like you are. Best practice is to create a 3rd consolidated company. You will then consolidate both the USD and AUD companies into the consolidated company. 

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