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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / budget control statist...
Microsoft Dynamics AX (Archived)

budget control statistic using budget rate type ?

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Posted on by agus 1,174

hi expert,

I want to make sure the "default budget exchange rate type" will impact to calculation on budget statistic menu ? is that correct ?

or am i wrong ? need advice please

exchange-rate-type.png

regards,

agus

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I have the same question (0)
  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Agus Setiawan,

    Has the budget amount that you show above been entered in foreign currency, that is a currency other than IDR?

    Best regards,

    Ludwig

  • agus Profile Picture
    agus 1,174 on at

    hi ludwig,

    budget amount in IDR, but transaction in USD.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Agus Setiawan,

    I see. And the budget amount of 11970000 is in IDR, right?

    Have you actually entered a budget amount in a foreign currency let's say in EUR?

    Can you possibly test this in a demo machine to see what this parameter setting does?

    Doing that should then convert the EUR amount into IDR based on the exchange rate that is specified with your budget exhange rate type.

    Hope this answers your question.

    Best regards,

    Ludwig

  • agus Profile Picture
    agus 1,174 on at

    hi Ludwig,

    Have you actually entered a budget amount in a foreign currency let's say in EUR ==. I entered all budget entries in IDR currency.

    so, your suggestion is should enter budget entries in IDR and USD as well ?

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Agus,

    :-) That's not what I tried to say.

    This budget exchange rate should not have an influence on your budget data as long as you budget all amounts in IDR.

    If you want to budget some amounts let's say in EUR - because you have a large customer in Germany - then you can enter those budget amounts for this customer in EUR currency by entering for example a sales amount in EUR. This amount is then converted into your IDR by the budget exchange rate.

    If you do not budget in IDR, this rate should not really matter. I saw that you have USD as secondary currency specified. The secondary budget amounts in USD should be influenced by this budget exchange rate. However, for what reason do you need your secondary currency budget amounts in USD? I would assume that your management is interested in IDR data and not some converted USD data that they have to approve.

    Hope this helps clarifying this.

    Best regards,

    Ludwig

  • agus Profile Picture
    agus 1,174 on at

    hi Ludwig,

    to be honest, I still confuse. :-) anyway thank you so much for your explanation.

    just need confirm the logic in AX base on my scenario :

    1. I have 2 exchange rate type : budget & default. master rate for budget 13.300 & default is 13.318

    2. I entered budget in IDR. let say IDR 5.000.000 each month

    3. on February had transaction USD 900 & posted.

    4. If I looked at trial balance, posted in IDR amount $900 X 13.318 = 11,986,200, but if I looked at budget control statistic menu displayed IDR 11.970.000 (calculated from $900 X 13.300 ==> exchange rate type "Budget")

    so, base on above scenario, on budget control statistic menu, actual column will use exchange rate type = budget

    actual amount between TB and control statistic will different

    is that correct ? :-)

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Agus,

    Your example is what I would expect AX doing.

    The question is why you need a different budget exchange rate.

    If you are worried about the exchange rate fluctuation that might distort your actual-budget comparison, then your budget rate makes sense because you budgeted 900$ and do not want to have a distortion in the variance measured because of a IDR-USD fluctuation. This would, however, require that you make use of a single budget rate for the whole budgeting period. This might look strange if you compare it with your Trial Balance but if you suffer from high inflation then this budget comparison is right.

    If, on the other hand side, you do not see a high inflation and large exchange rate fluctions of let's say (>20%) then I would not make use of a separate Budget Exchange rate and use the same as for actual accounting. Unfortunatlely, I do not know the volatility of the IDR against the USD and can thus not assess whether you need a separate exchange rate type or not.

    Hope this helps.

    Best regards,

    Ludwig

  • agus Profile Picture
    agus 1,174 on at

    The question is why you need a different budget exchange rate ==> basically I did not know what was the impact, after implemented I see the different, so may I change directly the default setup in ledger as "default" for budget exchange rate type ?

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Agus,

    Is this a live system?

    I do not like changing this setup because I saw some difficulties/trouble related to this.

    If it is a live system, I would rather change the exchange rates setup or consult a developer before changing the exchange rate type.

    Theoretically, changing this setup should be fine but I would not test this in a live system.

    Best regards,

    Ludwig

  • agus Profile Picture
    agus 1,174 on at

    ok Ludwig, i'll check first with my developer. thank you for your help

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