Fx Exchange difference

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Posted on by BBBCMAN

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Hi All,

When we posted euro payable invoice in USD company in LCY we are getting 0.01 difference only sometime. I have added the amount rounding precision as 0.01 in currencies as well as realized/unrealized gain loss in currencies. Is there any other setup I am missing which causing this issue.

Thanks,

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BBBCMAN 455 on at

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Hi All,

anyone experience this please let me know.

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Grigorios Mavrogeorgis 2,721 Super User 2026 Season 1 on at

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Hi B,
Small one cent on currency conversion is often normal in BC, it is the rounding when euro amount convert to USD as your LCY, each line round on its own so the total can be off by a cent depend on rate and values. The realized/unrealized gain loss account is there exactly to absorb that, so in many cases it is not a real error.

But before you say it is fine, worth to check where the cent actually appear. If it is only when you apply a payment to the invoice across currency, then look at Appln. Rounding Precision and Rounding Precision (LCY) in General Ledger Setup, that one is for application. If it is on the invoice posting itself, then it is more the amount rounding and the gain loss setup you already done.

So the question is, the difference show on posting the invoice, or when you apply payment to it? And is it going to the right account? That tell us which setup to look

Glad to help - follow up if anything is unclear.
► If this solved it, marking it verified helps others too.
Regards,
Grigorios Mavrogeorgis
Business Central Consultant & AL Developer
Work: Gmsoft Limited
Blog: insidebusinesscentral
LinkedIn: linkedin.com/in/gregorymavrogeorgis

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OussamaSabbouh 18,239 Super User 2026 Season 1 on at

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Hello,
a 0.01 LCY difference on foreign currency payables is usually normal rounding behavior, not necessarily a missing setup. The Amount Rounding Precision on the Currency mainly affects the foreign currency amount, not always the LCY side, so also check General Ledger Setup for LCY amount/unit rounding, and check Purchases & Payables Setup > Invoice Rounding if you want BC to post small invoice rounding differences automatically to a rounding G/L account. Also note that realized/unrealized gain/loss accounts are for exchange rate differences during payment/revaluation, not for normal invoice rounding at posting.
Regards,
Oussama Sabbouh.

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BBBCMAN 455 on at

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Hi Grigorios & Oussama,

I am posting invoice and when the exchange rate has 3 decimal places no issues but current month has 4 decimal place euro against USD only then its creating problem with 0.01 cent issue.

Thanks

Babu

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Teagen Boll 3,334 Super User 2026 Season 1 on at

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Hi Babu,

You can check your rounding settings in the currency card:

You can change the invoice rounding precision, amount rounding precision and application rounding precision and test to see if it gets you the result you want.

Best,

Teagen Boll

Work: Catapult ERP

Social: LinkedIn

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BBBCMAN 455 on at

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Hi Teagen,

Invoice rounding precision I can add only 2 decimal so it can be 0.01 or 0.10 but I cannot add 0.001 so its doesnt work and I think this is a bug in BC.

Thanks,

babu

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BBBCMAN 455 on at

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Hi All,

following is my findings.

Exchange rate EUR = 1.181 USD (posted invoice in general journal with multiple lines no difference and posted)

Exchange rate EUR = 1.1635 USD (invoice in general journal has 0.01 difference)

Exchange rate EUR = 1.164 USD (invoice in general journal has 0.01 difference) - exchange rate changed from 4 decimal to 3 decimal

Exchange rate EUR = 1.161 USD (posted invoice in general journal with multiple lines no difference and posted) - exchange rate changed from 1.164 to 1.161

So its looks like the exchange rate should be closer to 2 decimal rounding an if its not it will have a difference of 0.01. If anyone have different idea to fix this please let me know.

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Teagen Boll 3,334 Super User 2026 Season 1 on at

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Hi Babu,

If you want to change the Amount Rounding Precision you also need to update the Amount Decimal Places:

As for the penny differences you experience those are most likely just automatic penny adjustments done in the system based off minor FX differences. It's hard to troubleshoot without looking at your data directly.

For example here is my FX table for a basic example in a company with CAD to USD (similar to your EUR to USD):

And my rounding section for USD:

In my invoice here is my FX calculation:

And on my payment here is my FX calculation where I have an FX gain/loss of 63$ relative to my invoice (1/1/2026 FX rate versus 1/1/2027 FX rate):

So unfortuantely I wasn't able to replicate your penny calculation difference.

But as a closing note, most of my clients simply just ignore the penny rounding as it's not a material amount and it does come up with FX conversions. Usually at the payment and the recognition of FX gains/losses it's a wash anyways and doesn't impact the financial statements.

Best,

Teagen Boll, CPA

Work: Catapult ERP

Social: LinkedIn

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BBBCMAN 455 on at

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Hi Teagen,

Increasing decimal placed didnt helped.

My post is General Journal - Invoice -Credit Vendor -1902.32

Multiple Debits - 44.97, 169.73, 1687.60 (all value is in Euro) and LCY is USD exchange rate is 1.1635

difference of LCY 0.01

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BBBCMAN 455 on at

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Hi Teagen,

The amount 0.01 is not significant but problem is user is not able to post this with the difference so it has to be manually corrected LCY before it get posted.

Thanks,

babu

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