Currency exchange rate difference

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Posted on by Rana Anees

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Hii,

If we raise an invoice and there is difference between our AX currency exchange rates and Bank rates that time,
Does the AX automatically post the difference in some GL account?

Should we daily update the currency exchange rates in AX 2012 R3?

What is the standard procedure in this regard?

Thanks,

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Ludwig Reinhard Microsoft Employee on at

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RE: Currency exchange rate difference

Hello Rana Anees,

If you use 4.8 instead of the 4.25 default exchange rate, AX will post the payment first.

The voucher can be identified under inquiries - voucher.

Once you have the voucher form open you can select the 'related vouchers' button, which will show you the exchange gain/loss posted.

The exchange rate gain/loss itself is posted on the ledger accounts that you can find under GL-setup-ledger. At the very bottom of this form you can find the currency gain/loss accounts.

Please note that those currency gain/loss accounts can be overwritten at the currency level. That is, for each currency you can specify a different currency gain/loss account if you like.

Regarding some reports:

There is no specific currency gain/loss report available. Yet, once you know the currency gain/loss accounts you can analyze the generated transactions through the Trial Balance list page or the voucher inquiry form.

Best regards,

Ludwig

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Rana Anees 1,813 on at

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RE: Currency exchange rate difference

Thanks Ludwig Reinhard,

I got your point but have following confusion.

At your first reply.

"At the time you record a payment you can overwrite the AX rates with the bank rates and AX will post the difference between the original and the recorded rate as currency gain/loss"

For example our default exchange rate is 4.250 in currency table, and in a payment we overwrite exchange rate to 4.80. In this case as you said "AX will post the difference between the original and the recorded rate as currency gain/loss"

where in AX I can see the currency gain? some report?

and where it will post the difference? some GL account? and where configured?

Thanks and Regards,

Anees

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Ludwig Reinhard Microsoft Employee on at

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RE: Currency exchange rate difference

Hi Rana Anees,

For Question 1:

The exchange rate that you illustrate in the screenprint above are the ones that are used by default.

In my example, I entered a foreign currency (GBP) payment and AX suggests an exchange rate of 157.55, which is taken from the table that you show.

If your bank uses a different rate, lets say 155.00, then you can simply overwrite the suggested exchange rate in the field to apply the bank rate instead.

There are not many training materials, videos available that specifically deal with this topic. You can try checking the AX help site or TechNet if you need more information.

For Question 2:

If your bank uses a different exchange rate, then you directly overwrite the default rate in the journal. You do not have to update the currency table.

Best regards,

Ludwig

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Rana Anees 1,813 on at

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RE: Currency exchange rate difference AX 2012

Thanks Ludwig Reinhard,

For Question 1:

I am not getting how I can overwrite AX rates with bank rates and where AX will post difference? Where I can read more or video or images for more understanding?

For Question 2:

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Ludwig Reinhard Microsoft Employee on at

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RE: Currency exchange rate difference AX 2012

Hello Rana Anees,

For Question 1:

No, AX does not automatically post a difference in a GL account because it does not know your bank rates until you enter them when posting some kind of payment. At the time you record a payment you can overwrite the AX rates with the bank rates and AX will post the difference between the original and the recorded rate as currency gain/loss

For Question 2:

If you have a lot of foreign currency transactions, it is a good practice having the currency exchange rates automatically imported on a daily basis. If you don't, you can manually enter the rates whenever you require them.

Best regards,

Ludwig

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