web
You’re offline. This is a read only version of the page.
close
Skip to main content

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Is it possible to adju...
Small and medium business | Business Central, N...
Answered

Is it possible to adjust the fx yourself without using the fx Adjustment feature?

(4) ShareShare
ReportReport
Posted on by joshtechsolutions 5,039
Hi Community,
 
One of my accountant decided to do adjustment of exchange rate themself using payment journal and they seems to be doing for  quite a few years, hence when I introduce them to the Exchange Rate adjustment, they don't think it is adjusting the correct FX.
 
 
however, they think that theirs is correct.
 
My question:
 
1. May I know Is it possible to adjust the exchange rate yourself without using the Exchange Rate Adjustment feature? if so, how do you do it?
 
2. I notice that when doing Exchange rate adjustment, it adjusted many of the fx in old entries.
 
3. How can I know when I posted a sales or purchase invoice, are there any adjustment being made?
 
I understand that the 3 questions might not be directly related to each other, you can just answer one, that will be good for me.
 
Thank you!
Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Suggested answer
    Jeffrey Bulanadi Profile Picture
    Jeffrey Bulanadi 9,116 Super User 2026 Season 1 on at

    Hi Josh,

    FX handling in BC can be nuanced, especially when manual practices have been in place for years.

    Yes, it’s possible to adjust FX manually without using the Exchange Rate Adjustment batch. Many accountants do this via the Payment Journal or General Journal by entering the exchange rate directly on the line. This posts the realized gain or loss based on the rate they input, but it bypasses the system’s unrealized gain/loss logic. It’s valid, but it requires discipline to ensure consistency across reporting periods and audit trails.

    The Exchange Rate Adjustment batch job, on the other hand, recalculates unrealized gains/losses on open entries, like unpaid invoices or bank balances. That’s why it touches older entries: it’s not changing the original posting, just revaluing them based on the current rate. This behavior is expected and aligns with standard accounting practices for month-end or year-end FX revaluation.

    As for knowing whether an adjustment was made when posting a sales or purchase invoice, the system uses the exchange rate defined for that posting date. You can check the Currency Code and Exchange Rate Amount on the invoice or journal line. No FX adjustment is made at posting unless you override the rate manually. Adjustments are posted later via the batch job or manual journal entries.

    Helpful References
    Update currency exchange rates – Microsoft Learn
    FX adjustment behavior – Dynamics Community thread
    Manual FX handling – Yun Zhu’s blog
    Adjust exchange rates easily – Microsoft Learn


    If you find this helpful, feel free to mark this as the suggested or verified answer.

    Cheers
    Jeffrey

  • Suggested answer
    Rishabh Kanaskar Profile Picture
    Rishabh Kanaskar 6,225 Super User 2026 Season 1 on at
    Hi,
     
    Yes, it is possible to adjust foreign currency manually without using the Exchange Rate Adjustment feature, but it’s not recommended because it can break the automatic FX gain/loss calculations.
    > You can post a manual G/L journal entry or Payment Journal debiting/crediting the currency difference accounts directly to adjust the value.
    > The Exchange Rate Adjustment feature, by contrast, automatically calculates gains/losses based on open entries and posted amounts.
     
    To check if an adjustment was made for a posted invoice:
    > Review the Applied Entries or Ledger Entries for that invoice.
    > If an FX Gain/Loss account was posted or a separate adjustment journal entry exists, the invoice has been affected by exchange rate adjustments.
     
    Using the feature ensures consistent and auditable FX adjustments. Manual adjustments can be done but require careful tracking.
     
    Thanks
    Rishabh
  • Verified answer
    Sumit Singh Profile Picture
    Sumit Singh 11,790 Super User 2026 Season 1 on at
    Hi,

    1. Can you adjust exchange rates manually without the Exchange Rate Adjustment feature?

    Yes. Users can manually adjust foreign currency amounts by posting journal entries (e.g., in the General Journal or Payment Journal) to account for currency differences. This is often done by:
    • Calculating the difference between the original LCY amount and the new LCY amount based on the updated FX rate.
    • Posting the difference to realized or unrealized gain/loss accounts manually.
      However, this approach is not recommended because it bypasses automated tracking and reporting of currency adjustments. The standard method is to use the Adjust Exchange Rates batch job, which updates LCY amounts for posted entries and posts gains/losses systematically.[1][2]
      Learn more

    2. Why does the Exchange Rate Adjustment affect old entries?

    The Adjust Exchange Rates batch job recalculates LCY amounts for all open customer, vendor, and bank ledger entries (and optionally G/L accounts) based on the current exchange rates. It adjusts unrealized gains/losses for open entries, even if they were posted months or years ago, because those balances are still outstanding and subject to FX fluctuations.[2]
    Details here

    3. How to check if an adjustment was applied to a posted invoice?

    1. Customer/Vendor Ledger Entries
      • Open the Customer Ledger Entries or Vendor Ledger Entries page.
      • Look for additional entries created by the Adjust Exchange Rates batch job. These entries will:
        • Have Document Type = “ ” (blank).
        • Show Description = “Adjust Exchange Rate” (or similar).
        • Contain the adjustment amount in LCY Amount (difference posted).
      • These entries are linked to the original invoice via Applies-to ID or Entry No..
    2. General Ledger Entries
      • Navigate to G/L Entries filtered by the posting date of the adjustment.
      • Look for postings to Unrealized Gain/Loss or Realized Gain/Loss accounts (as defined in Currency setup).
    3. Exchange Rate Adjustment Registers
      • Go to Exch. Rate Adjmt. Register page.
      • Each run of the batch job creates a register with details of all adjusted entries.
    References
    [1] Update currency exchange rates - Business Central
    [2] Adjust exchange rates in Dynamics 365 Business Central
    [3] Extending currency exchange rate adjustments - Business Central ...
    Please mark “Verified” if it helps.
     
  • Verified answer
    Valentin Castravet Profile Picture
    Valentin Castravet 32,664 Super User 2026 Season 1 on at
    1. It can be done manually but its going to take a huge amount of time to get it correct, and my guess is that this is not happening. For example, for AP/AR the adjustment posts adjusting entries at month end, and then when the invoice is closed the system reverses the adjusting entries that were posted at month end and posts new adjusting entries for when the invoice is closed. If the user is posting adjusting entries manually, are they only posting adjusting entries at month end, or are they reversing them manually as well every single time an invoice is closed? 
     
    This seems more like a case of the user not understanding how the system process works. It works great for many companies so its definitely correct. There's no reason to do all this manual work if the system can do it for you.
     
    2. For AP/AR its going to adjust any entry that's open, so if you have old entries that are still open that's why they're getting adjusting.
     
    3. There's no adjustments made by this function when the original invoice is posted. The system simply converts the foreign currency amount into the local currency. However, adjustments are made when the invoice is closed. You can look at the G/L Entries created to figure out which are the adjustments. 
     
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 100,212 Super User 2026 Season 1 on at
    Hi, hope the following helps.
    Dynamics 365 Business Central: Change the exchange rate on each journal line/document
     
    And in fact, there is a Currency Factor field on the Sales/Purchase document. If you want to enter it manually every time, you can do a simple customization...

     
     
    Hope this helps.
    Thanks.
    ZHU
  • Suggested answer
    Nimsara Jayathilaka. Profile Picture
    Nimsara Jayathilaka. 5,001 Super User 2026 Season 1 on at
    Hi

    Manual adjustments are possible, but risky and not automated.

    The Exchange Rate Adjustment feature ensures all open entries are corrected based on current rates.

    You can always trace adjustments per invoice through Ledger Entries to verify any FX impact.

     

    Thanks

    Nimsara

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Introducing the 2026 Season 1 community Super Users

Congratulations to our 2026 Super Stars!

Meet the Microsoft Dynamics 365 Contact Center Champions

We are thrilled to have these Champions in our Community!

Congratulations to the April Top 10 Community Leaders

These are the community rock stars!

Leaderboard > Small and medium business | Business Central, NAV, RMS

#1
OussamaSabbouh Profile Picture

OussamaSabbouh 2,012 Super User 2026 Season 1

#2
YUN ZHU Profile Picture

YUN ZHU 986 Super User 2026 Season 1

#3
Teagen Boll Profile Picture

Teagen Boll 659 Super User 2026 Season 1

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans