Dynamics Community Forum Thread Details

multicurrency in one transaction with LCY and ARCY

Dear Community ,

i have this business Scenario i would to check if there is a way to the solve the problem happening from it as follows:

My customer company have Set the LCY to AED, the ARCY (Reporting Currency) to USD with a fixed exchange Rate

when we make Purchase Invoice with FCY (GBP) for Example and post the transaction the Amount will be posted both in AED and USD

when we make the payment it is done from USD , with the exchange rate for USD to GBP for that date , the system will automatically post gain or loss on the LCY but not on ARCY

so looking at my GL the AP amount will be zero after posting the payment only for LCY but not ARCY

example

Invoice 1 GBP value = 11,822.50 exchange Rate to LCY = 4.903859 , LCY Amount = 57,975.87, ARCY Amount = 15,786.83

Invoice 2 GBP Value= 6,738.00 Exchange Rate to LCY =4.888845 , LCY Amount = 32,941.04 , ARCY Amount = 8,969.85

Payment USD Value = 25,268.260 to be applied to above 2 invoice with exchange rate USD to GBP =0.734538 , Exchange rate GBP to LCY = 4.921603

now the GL Entries which get created on the Payments are as follows :

Account name	Amount LCY	Amount ARCY
Cash	-91,347.40	-25,268.26
AP	91,347.40	25,268.26
FX Loss	430.49
AP	-430.49

As You can see the system already found the FX loss and posted for the LCY , but did not do that for the Additional Reporting Currency

in Result the AP Account will have the following Balances

Transaction	LCY	ARCY
Invoice -1	-57,975.87	-15,786.83
Invoice -2	-32,941.04	-8,969.85
Payment	91,347.40 - 430.49	25,268.26
Total	0.0	511.58

the AP will never but reconciled on the ARCY

any way i can solve the problem , or if there is wrong step i am doing or even a missed setup i have to enable to fix the issue

thanks and regards

Hi,

Thank you for posting on the Forum.

It would be my expectation that you would run the Adjust Exchange Rate batch job with Adjust Additional Reporting Currency checked to update the exchange rate values for ARCY balance. The result is By Design because the US$ value is $25,268.26, which matches the original ARCY Amount, thus there is no Gain or Loss for ARCY. To complete an update of the Balance Sheet ARCY values in total and record ARCY unrealized gain/loss amounts for updated value, the Adjust Exchange Rate process is required to be run for the ARCY. The process will run against accounts on the Balance Sheet with the setting on the Reporting Tab of the G/L Account Card for Adjustment setting of 'Adjust Additional - Currency Amount'.

Best regards,

Tom

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