TB Not matching due to Exchange Rate

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Posted on by Vinayak Hegde

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LE Accounting currency AUD and Reporting currency USD.

Users posted multiple general journals in USD in Jan, Feb and March. Here is the sample

Date	Transaction Currency (USD)		Accounting Currency (AUD)		Reporting Currency (USD)
	Dr	Cr	Dr	Cr	Dr	Cr
31-Jan-25	10000		15031		10000
28-Feb-25	5000		7469		5000
31-Mar-25		15000		22164		15000

Transaction and reporting currency is same so it made Zero at the closing of March however accounting currency is having balance. Forex revaluation process is not considering these accounts. How we can clear this balance.

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Dynamics 365 Finance

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André Arnaud de Cal... 304,708 Super User 2026 Season 1 on at

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Hi Vinayak,

What type of entries were posted by the user? Is about customer or vendor invoice and payment, bank transactions or ledger transactions?

In case of customer, vendor, or bank transactions, it should be considered by the currency revaluation options for these modules.

For ledger, I'm not sure how all got entered and posted in your environment. You can consider posting additional entries to clear the Accounting currency with an Exchange gain/loss account as offset. That will most likely have a balance in the reporting currency. You can clear that using a Reporting currency adjustment journals. See: Reporting currency out of balance when the year-end close is run - Finance | Dynamics 365 | Microsoft Learn

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CA Neeraj Kumar 5,135 Super User 2026 Season 1 on at

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Hi @Vinayak Hegde,

Since you are having balances in accounting currency for those GLs which are not part of Forex revaluation process (assuming you are talking about AP/AR), so have you tried to do the Foreign Currency Revaluation for GLs.

To do the same, you need to setup:

1) On the Main account page:

If the main account should be revalued in General ledger, select Foreign currency revaluation. If the main account shouldn’t be revalued (such as for AR and AP if revalued in the subledgers), clear this option.

If the main account is marked for revaluation, enter the Exchange rate type. This exchange rate type is used for revaluing the main account. Financial reporting exchange rate type is available for financial reporting. The two fields aren't kept in sync, allowing for different exchange rate types to be used for revaluation and financial reporting.

2) Process foreign currency revaluation

[taken from link: https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/foreign-currency-revaluation-general-ledger]

Regards,

Neeraj Kumar

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Syed Haris Shah 1,666 Super User 2026 Season 1 on at

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Hi Vinayak,

It seems the ledger account used in your transaction was not configured as a monetary account. You posted entries in USD (transaction currency) that translated into AUD (accounting currency) at different monthly exchange rates.

To resolve this, update the Main account setup by enabling the checkbox “Foreign currency revaluation” and assigning the correct exchange rate type and reporting exchange rate type.

Then, run the Foreign currency revaluation process (General ledger > Period close > Foreign currency revaluation). The system will automatically generate an entry to post the FX gain/loss with an amount of 336 AUD to the designated FX account and balance your GL account.

I tested the same scenario with a different exchange rate, not yours, in my environment. Before running the revaluation, the balance was showing as in the screenshot below.

After I updated the main account setup to enable “Foreign currency revaluation” and assigned the proper exchange rate type, I ran the GL currency revaluation job.

Once revaluation was processed, the system automatically generated the FX gain/loss entry, and my account balance was cleared.

Voucher for my Target Account 601504 after revaluation is as below. The balance is now showing zero.

If you find this answer helpful, please consider verifying the answer. 👍

Regards,

Syed Haris Shah

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CA Neeraj Kumar 5,135 Super User 2026 Season 1 on at

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Hi @Syed,

It's really helpful to see such detailed answer after testing the same in system. It's like a blog. Thank you so much.

Regards,

Neeraj

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Syed Haris Shah 1,666 Super User 2026 Season 1 on at

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@CA Neeraj Kumar Thank you! I’ll definitely convert this into a blog post and publish it for the benefit of the entire community.

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