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Dynamics 365 Community / Forums / Microsoft Dynamics NAV (Archived) / Residual account on co...
Microsoft Dynamics NAV (Archived)

Residual account on consolidation business unit

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Posted on by Community Member

Hi

can someone please explain under what conditions NAV would post to the residual account assigned on the business unit card when we run consolidation?

I am consolidating 100% of a subsidiary with the same LCY currency so there should be no exchange difference.

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  • Hannes Holst Profile Picture
    Hannes Holst 5,767 on at
    RE: Residual account on consolidation business unit

    Hi,

    I'm not so familar with Business Units, but I have checked the code.

    What I understand is, that the Residual Account is used as a balance account, when exchange rates must be handled.

  • Community Member Profile Picture
    Community Member on at
    RE: Residual account on consolidation business unit

    Thank you Hannes that makes sense but I still don't know why the system needs to handle exchange rates on business units that are not assigned any currency code, which means they have the same currency as the consolidation company. 

    I would appreciate if you can tell me whether you noticed any other triggers for residual amount calculation.

  • Hannes Holst Profile Picture
    Hannes Holst 5,767 on at
    RE: Residual account on consolidation business unit

    Hi,

    Have a look for this HowTo: https://msdn.microsoft.com/en-us/library/hh168758(v=nav.90).aspx

    Follow the description and make sure that no Currency Exchange Rates are entered for your Business Units.
    When this is the case, no additional fx-rate postings will be done.

  • Verified answer
    Community Member Profile Picture
    Community Member on at
    RE: Residual account on consolidation business unit

    I have done all the checks and made sure it's not a currency exchange problem.

    1. the exchange rate table is empty in both the subsidiary AND the consolidation Company.
    2. Currency code on the business unit is blank
    3. Consol. translation method is set to "Closing" for BS accounts and "Historical" for IS accounts.

    I have done a quick reconciliation of the consolidation entries posted, and i have noticed the following:

    • for GL accounts assigned the "closing rate", a balancing entry was posted to the residual account on the consolidation end date.
    • for GL accounts assigned the "historical rate", a balancing entry was posted to the residual account on the transaction date.

    the above was true regardless of whether foreign currency transactions existed or not.

    I resolved this by doing the following:

    1. since the companies did not use any currencies, i set the cons. translation method to "closing rate" on all the GL accounts in both consolidation and subsidiary companies.
    2. i removed the "residual account" value from the business unit card
    3. when i ran the "import database" report again, the balances consolidated and no residual account was required.

    The above solution only works if currencies are not used in either company. 

    Thanks for the replies.

    Roula

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