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Help Understanding FX Adjustment Behavior in Business Central vs NAV

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Posted on by Jeel P

Hello BC Community,

I need some assistance understanding how the Foreign Currency Revaluation (FX Adjustment) process works in Business Central, especially compared to NAV.

My client recently migrated from NAV to Business Central (BC). We have successfully loaded the opening balances as of 31-Dec-2024, and run the FX adjustment for December 2024.

In NAV, no FX adjustment entry was generated for December. However, in BC, the system did generate an FX adjustment entry for the same period, even though the opening balances and exchange rates (both original and adjusted) match exactly in NAV and BC.

My Questions:
Which types of entries does the FX adjustment process apply to?

Only open entries (Invoices, Payments, Credit Memos)?

Or can it also impact closed/applied entries?

Which date(s) does the system consider when running the "Exchange Rate Adjustment" report?

Example Scenario 1 (FX for December 2024)
Currency Code: USD

Invoice Date: 15-Dec-2024

Invoice Amount: $1,000

Payment Date: 5-Jan-2025 (Applied to the invoice on the same day)

We ran the Exchange Rate Adjustment report on 8-Jan-2025, (system date) with the following parameters:

Starting Date: (Blank)

Ending Date: 31-Dec-2024

Posting Description: Adjmt. of %1 %2, Ex.Rate Adjust.

Posting Date: 31-Dec-2024

Document No.: FX Dec 2024

Adjust Customer: Yes

Currency Code: USD

How system generated an FX adjustment entry in BC and NAV in this case?

Example Scenario 2 (FX for January 2025)
Invoice Date: 7-Jan-2025

Invoice Amount: $2,000

Payments:

7-Feb-2025: $1,000

7-Mar-2025: $1,000

Application Dates: Applied on the actual payment dates (Feb & Mar)

We ran the Exchange Rate Adjustment report on 10-Mar-2025, (system date) with the following parameters:

Starting Date: (Blank)

Ending Date: 31-Jan-2025

Posting Date: 31-Jan-2025

Document No.: FX Jan 2025

Adjust Customer: Yes

Currency Code: USD

How system generated an FX adjustment entry in BC and NAV in this case?

What I'm Looking to Understand:
In both cases, how does BC generate entries differently from NAV?

What exact date or criteria does BC consider for deciding which entries get adjusted during FX?

Any insights or clarification would be highly appreciated!

Thank you in advance!

Regards,

Jeel P.

https://www.linkedin.com/in/jeel-paun/

Categories:

Dynamics 365 Business Central

Microsoft Dynamics NAV

Dynamics 365 Business Central migration

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Gerardo Rentería Ga... 25,157 Most Valuable Professional on at

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

Dynamics 365 Business Central – Walking through an Adjust Exchange Rates (revaluation) scenario in Business Central

Best Regards
Gerardo

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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If you're seeing different behavior in NAV compared to Business Central, it means one of two things: either the Adjust Exchange Rates batch job is being run with a different Ending Date, or the underlying documents differ between the systems, for example, they may have been closed on different dates, or their statuses (e.g., Open vs. Closed) may not match. The latter is probably what's happening since you manually imported these documents instead of creating them in the system.

While there have been some updates to the Adjust Exchange Rates function in Business Central, none of those changes should affect your specific scenario. The update allows you to run this function for each subledger individually (customers, bank accounts, vendors), among other things, it doesn't affect which specific documents are updated or not.

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

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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This feature has been updated in BC, and I suspect this is the problem.

Adjust exchange rates easily, replace the built-in batch job

https://learn.microsoft.com/en-us/dynamics365/release-plan/2023wave2/smb/dynamics365-business-central/adjust-exchange-rates-easily-replace-built-in-batch-job?wt.mc_id=DX-MVP-5004336

Thanks

ZHU

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Khushbu Rajvi. 20,275 Super User 2025 Season 2 on at

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Check this to: https://learn.microsoft.com/en-us/dynamics365/business-central/finance-how-update-currencies

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