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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Intercompany - Multi C...
Small and medium business | Business Central, N...
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Intercompany - Multi Currency

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Posted on by stephenm171 23

Does the Intercompany functionality support multi currency transactions - either the Parent Company or the child entity has a different local currency?

Also, if the child (local currency is AUD) company transacts a foreign currency eg USD - how is that managed within the Parent Company 1. where the foreign currency (USD) is the same as the local currency for the parent (USD) 2. where the Parent currency (Euro) is different to both the child local currency (AUD) and the foreign currency (USD) of the child transaction.

  • Suggested answer
    Bilal Haider Profile Picture
    Bilal Haider 69 on at
    RE: Intercompany - Multi Currency

    Hi,

    Yes it is supported by Business Central. No matter if the currencies are different for parent and child companies. It is simply handled as Business central handle different currencies of customers and vendors. You can even change the currency for IC transactions from the local currency. You need to setup Intercompany partner. See the image below:

    8468.Currency.PNG

    Let's take the example that you have written above. Taking the assumption that you have done IC setup and specified the currency of parent as USD. If child company has done a transaction in foreign currency USD and it is local currency for parent company then when you post this transaction it is treated as Foreign currency in child company but it will be treated as USD that is local currency (if you have not changed it on the Intercompany Partners setup). 

    Hopefully this will help you understanding this. Please verify if it answers your query.

    Regards,

    Bilal

  • Suggested answer
    Dirk Profile Picture
    Dirk on at
    RE: Intercompany - Multi Currency

    Hello,

    Yes, the Intercompany functionality allows intercompany transactions between multiple databases, for example, in different countries/regions, as well as multiple currencies, different charts of accounts, different dimensions, and different item numbering.

    Regards your examples 1 and 2

    I think that the USD transaction in the child, which is converted to LCY = AUD will be re-valuated into USD in the parent company. So there might be differences in the USD amoutn in child and parent, depending on the actual setup of the currency exchange rates in the different companies. I think there is no logic which compares the amounts in case the currency code is the same in the original transaction and the amount which is received through the IC functionality

    Please test this and if you face issues feel free to open a service request at Microsoft / ask your BC partner to open a service request on your behalf. 


    Please check here:
    https://docs.microsoft.com/en-us/dynamics365/business-central/intercompany-manage

    Does this answer your question?

    Thanks

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