How do configure FX hedging or interest rate hedging in Navision 2018?

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Posted on by joshtechsolutions

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Hi Community,

I would like to find out this...

My company is selling and purchasing in foreign currencies, so I was wondering if we can do any FX hedging in the NAV, for example..

Sales person and supplier agree on the price, then base on the price of the agreement and the FX rate of that day which they agreed. The FX rate is set and will not be change on the actual day of transactions.

Are we able to set this sort of hedging in Navision?

Thank you!

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YUN ZHU 90,017 Super User 2025 Season 2 on at

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RE: How do configure FX hedging or interest rate hedging in Navision 2018?

Hi, Yeah, I agree with Igne on this.

If you want to record the amount in the exchange rate of the day, I think you can enter the amount in the local currency converted at the exchange rate of the day on the order, and then add a field, such as the amount in foreign currency, of course, this is based on customization.

Hope this helps as well.

Thanks.

ZHU

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KTA 1,200 on at

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RE: How do configure FX hedging or interest rate hedging in Navision 2018?

First of all most of the decisions related with currency exchange aren't a software related issue. Most of it goes with national taxes laws and accounting audit. Related with this it's not the same to have little amount of operations in another currency that have most of them.

As previous replies said most companies use the process of currency revaluation. When companies don't use that could be for several reasons:

- Their amount of operations in big and this kind of process will change all the accounting.

- To avoid risk due to exchange rates changes, they could use for example exchange rate insurance or they even have a bank account in foreign currency so the real rate won't be that day rate, would be the exchange rate of the day of the money goes in that account.

- And so on...

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joshtechsolutions 4,927 on at

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RE: How do configure FX hedging or interest rate hedging in Navision 2018?

Hi Zhu,

Let me try to explain again.

Let's say i'm purchasing something from supplier at the USD FX rate of 1.3548 on 04 Jan,

however due to waiting time and stock delay. Payment was only made yesterday. If I was to pay with the sum of yesterday's FX rate, i may incur loss, as yesterday's FS Rate is 1.3819. About 0.0271.

So am I right to say I would like to do a hedging of FX rate? If not what do you call this, and can this be done in Navision?

Or as Inge mentioned, i have to do adjusted currency rate?

Thank you so much!

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YUN ZHU 90,017 Super User 2025 Season 2 on at

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RE: How do configure FX hedging or interest rate hedging in Navision 2018?

Hi, I may not fully understand your question, but I think you just need to enter the exchange rate for the day each day. (Of course you can also use Exchange Rate Services to input automatically.)

For example, This will automatically take the exchange rate of the effective date when entering the order for that day.

Hope this helps as well.

Thanks.

ZHU

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Inge M. Bruvik 1,035 Moderator on at

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RE: How do configure FX hedging or interest rate hedging in Navision 2018?

You can set an exchange rate on the sales order before it is invoiced so you know what rate the invoice will be posted with,

If you want that rate to not be changed until the date of payment you need to exclude those Customer Ledger Entries from being adjusted by the "Adjust Exchange Rate" procedure that you will find in the doc Marco linked you to.

Be aware that is some situation Business Central will suggest you update the exchange rate on the order and will promt the user for that. So you will need to instruct them to say no to that question after the exchange rate is set.

The alternative to that will be to do some customization to depress the suggested exchange rate updates.

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joshtechsolutions 4,927 on at

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RE: How do configure FX hedging or interest rate hedging in Navision 2018?

Thanks Marco. Yes we have been doing the update of currency rates, but I think FX hedging maybe kinda different.

So just want to see if anyone has done before.

Thank you!

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Marco Mels on at

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RE: How do configure FX hedging or interest rate hedging in Navision 2018?

Hello,

We have this in our docs just to start with:

docs.microsoft.com/.../finance-how-update-currencies

Thanks.

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