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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Conso Currency Transla...
Small and medium business | Business Central, N...
Suggested Answer

Conso Currency Translation - Historical Rate

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Posted on by Kelvin Hew 195

We have setup 2 companies with 2 different currencies. "MYR" is the local currency for one of the company and also the local currency for the "Consolidate Report" company (Conso company), another company is using "USD" as local currency.

We understand that whenever we "Run Consolidation" in Conso company, system will auto convert the USD to MYR, BC will pickup the exchange rate from the "Average Rate (Manual)" and "Closing Rate" from the Business Unit screen. Since "Average Rate" and "Closing Rate" apply to Balance Sheet and Income Statement accounts, how about equity type of accounts (such as Share Capital and Retained Earnings account) which assigning to "Historical Rate"? We don't find any place to enter the "Historical Rate", unlike the "Average rate" and "Closing rate". How do we enter "Historical Rate" in BC?

Conso-_2D00_-Currency-Translation.jpg

I have the same question (0)
  • Suggested answer
    Kelvin Hew Profile Picture
    Kelvin Hew 195 on at

    We manage to identify how "Historical Rate" works in BC. Being moving from Dynamics GP, we thought the Multi-currency Translation mechanism moves the same in BC but it is not.

    The "Historical Rate" pick up the rate from the "Consolidated Report" company exchange rate screen before Run Consolidation.

  • Ola Darwish Profile Picture
    Ola Darwish 919 on at

    Hi Kevin,

    does that mean if in the chart of accounts I had the account translation historical and in the consolidation company in Business unit setup the currency exchange rate table is set to Local.  It will take the rate from the consolidation company exchange rate table

    so if the consolidation company rate table says that the rate for Jan is 1.3, rate for Feb is 1.5.  Then it will use 1.3 for Jan amounts  and 1.5 for Feb amounts? and will work same but get the rates from Business unit or consolidated company if the exchange rate table field is set to Business unit?

    is my understanding correct?

    Thanks

    Ola

  • Kelvin Hew Profile Picture
    Kelvin Hew 195 on at

    Hi Ola,

    Yes, your setup will work the same according to mine, and the rate should be picking from the Conso Company exchange rate table if you set Currency Exchange Rate Table to "Local".

    Kelvin Hew

  • Ola Darwish Profile Picture
    Ola Darwish 919 on at

    Hi Kevin,

    Thank you for your reply.  

    I still have an issue though with one scenario which is having accounts set to historical but actually those accounts have different historical rates.  so Retained earning should use historical rate that is different from, the equity account, different from fixed assets account.  how can we achieve that in Business central for the translated balances that are coming from a legacy system.  if you were a GP user. I m referring to something similar to  currency translation table where you can put for each account a different rate for the historical balance

    Thanks

    Ola

  • Suggested answer
    Kelvin Hew Profile Picture
    Kelvin Hew 195 on at

    Hi Ola,

    You made a good point here. I have made another testing based on your scenario, looks like setting the Currency Exchange Rate Table to "Business Unit" is the best practice here. By picking up the rate from "Business Unit", Conso Company able to translate the multiple transaction with different Historical Rate which happen in the same month. Refer to my screenshot below for one of the GL account in Conso Company, the exchange rate is picked from "Business Unit" exchange table by transaction date.  Thanks for asking the question.

    Hist-Translation.jpg

  • Ola Darwish Profile Picture
    Ola Darwish 919 on at

    Hi Kevin,

    Thanks for your email.

    I still don't know how to have different historical rates for different accounts on same date.  This is only needed when bringing balances from legacy system.  in GP we have the screen below that can put a different historical rate for each account.

    pastedimage1591190396971v1.png

    Thanks

    Ola

  • Kelvin Hew Profile Picture
    Kelvin Hew 195 on at

    Hi Ola,

    I think you should only take the final ending balance of each account as at the cut-off date as opening balance, then start new in BC, in my opinion.

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