Dynamics Community Forum Thread Details

Revaluation of bank account process

We have a USD denominated bank account running in a GBP ledger (reporting currency also GBP). Therefore this USD bank account gets revalued to GBP closing rate at the end of each month. However we've noticed that even though the revaluation appears to run ok, the actual GBP equivalent value is not in line with the USD reconciled statement balance when translated at the closing rate used by the revaluation.

We suspect that the cause of the differences is down to other transactions occurring in non-USD currency. For example, a customer pays a EUR amount into our USD account to clear their EUR invoices. We therefore have some historic balances in non-USD having built up over time that we believe are causing the USD balance to no longer have correct value in GBP in full at the closing rate. Can someone explain in more detail than what is on MS learn about how a revaluation would treat these balances when there are some cumulative balances in a different currency to that of the bank account? thanks