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Multiple Foreign Currency Transactions

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Posted on by CU27090506-0

Can someone please explain to me how Business Central process multiple currency exchange for one transaction when:

LCY is different from AP Setup and Payment

LCY : PHP
AP Setup : USD 58.527
Posted Payment: EUR 62.3596

Purchase Invoice and General Ledger Entries in USD

Posted Payment in EUR

Posted Purchase Invoice: 3,280.50 (USD)

in LCY: 191,997.824

Posted Payment in LCY: 211,787.64

Why is the Debit Amount (LCY) on the Vendor Ledger Entry different from the GL Entry? (191k vs 211k)

Where did the 7,216.97 Realized Gain come from?

I hope someone can help me with this concern..

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gdrenteria 11,265 Most Valuable Professional on at

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Multiple Foreign Currency Transactions

Hi

I hope this can help you: Dynamics 365 Business Central – Making sense of the Currency Exchange Rates Page when setting Exchange Rates (thedynamicsexplorer.com)

Best

GR
CU27090506-0 27 on at

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Multiple Foreign Currency Transactions

Hi!

Can you also please help me out with the Realized Gains computation? I'm not sure how the 7,216.97 was computed..

The Purchase Invoice amount is 3,280.50 in USD.

Historical USD exchange rates on my previous post while the following is the historical EUR exchange rates:
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Yi Yong 1,001 Super User 2024 Season 2 on at

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Multiple Foreign Currency Transactions

Hello,

The practice is to create two lines instead of using Bal. Account No. for such scenarios.

You should debit the Vendor in USD and credit the bank in EUR.
CU27090506-0 27 on at

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Multiple Foreign Currency Transactions

This is the USD exchange rates from July to the latest.

I now know this is what factored in for the realized gain, but what was the computation to arrive at 7216.97 amount?

I also discovered that the 204k Payment Journal amount was caused by the user changing the currency from USD to EUR after selecting the posted purchase invoice. When the currency was changed, the Debit Amount remained the same.

How should I go about posting payments in EUR which Purchase Invoice was posted in USD?
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Valentin Castravet 24,002 Super User 2024 Season 2 on at

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Multiple Foreign Currency Transactions

When you post an invoice, the system uses the exchange rate for the invoice date. Later, when you pay the invoice, it uses the exchange rate for the payment date. Based on your screenshots, the invoice posted an amount of 191,997.824 in local currency, but the payment was for 211,787.64. The difference between these amounts represents the realized gain or loss, while the USD amount remained the same in both instances.

To clarify, since the invoice was posted in July and the payment was made in October, different exchange rates apply, leading to the gain or loss.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/
Yi Yong 1,001 Super User 2024 Season 2 on at

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Multiple Foreign Currency Transactions

Hello,

Can you provide the USD exchange rate on 10/1/2024 where the payment was posted?