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Consolidation company and Exchange rates

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Posted on by Nicolas Payan

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.

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

Does anyone know why is this happening?

Regards.

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AD-22040756-1 642 on at

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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.

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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Amit 2,557 on at

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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

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Nicolas Payan 8 on at

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RE: Consolidation company and Exchange rates

Hello,

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

"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

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AD-22040756-1 642 on at

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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.

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