Hi,
I need to know more about the estimates process in a Fixed Price project with a contract in a sales currency different than the base currency of the legal entity.
I observe that when the project has different on account transactions with future dates and changing my exchange rate, the contractual value changes but that change is posted in the Revenue account.
For example, I have two lines of transactions on account in my project:
10/31/2019 10,000 USD
11/30/2019 10,000 USD
In my table of Exchange Rates in General Account on the date of October I have an exchange rate 1 USD - 60 MXN
Therefore, when I am going to make my first estimate dated October, I can see that the total contractual value is 1,200,000 MXN, ( 20,000 x 60 calculation ). And the porcentage of progress indicated by 10%, therefore I recognize 120,000 MXN.
Then, in November change the exchange rate to 1 USD - 65 MXN
When I am going to make my second estimate in November, it can be seen that this 10% advance is no longer MXN 120,000 because my contractual value changed to MXN 1,250,000. Its no more 1,200,000 MXN.
And those 5,000 MXN difference (between 120000 and 125000) D365FO wants to recognize as if it were revenue...but it is simply the product of the exchange difference from one month to another.
Any ideas?
Thanks!!
