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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Project estimates on c...
Finance | Project Operations, Human Resources, ...
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Project estimates on contract currency (not company currency)

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Posted on by Nick Holden 12

Hi all,

I am wondering if it is possible to run estimates for a "Fixed price" project in the same currency than the one in the project contract (considering that project contract currency is different than company currency).

For instance, my company currency is EUR but my project contract is in USD. I would like to run estimates in USD (project contract currency) rather than in company currency (EUR).

Thanks in advance for your time.

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  • Suggested answer
    Gaurangkumar Jani Profile Picture
    Gaurangkumar Jani 4,512 User Group Leader on at
    RE: Project estimates on contract currency (not company currency)

    Hi Nick,

    As per the standard design system will generate estimates in Accounting currency only.

    It's logical to have Revenue and cost in accounting currency as they should always be comparable.

    In addition to that, all internal accounting require to post in Accounting currency.

    E.g: All sales and costs are always posted in Accounting currency in SO / PO.

    Only external documents are posted in different currecny.

    But how it will help you if the system allows you to estimate in contract currency?

    Thanks,

  • Nick Holden Profile Picture
    Nick Holden 12 on at
    RE: Project estimates on contract currency (not company currency)

    Hi Gaurangkumar Jani, thanks for your quick reply.

    Considering that the contract currency is different than accounting currency, then if devaluation occurs I need to register again same progress on estimation just to recognize that "revenue" (which is actually and exchange rate difference).

    Example:

    ACC = accounting currency

    On-Account transactions = 1000 USD

    Run estimates to post 10% progress (Exchange rate with my accounting currency 1 USD = 1 ACC) so 100 ACC are posted.

    Next month, exchange rate changes to 1 USD = 1.1 ACC. So when running new estimate at 20% (another 10% progress) new estimation is created for 120 (20% of 1000USD is now 220, not 2000) so as I have already posted 100, now 120 will be posted. However, 10 of that 120 should be allocated to first estimation as it is only exchange rate difference.

    Hope I have been clear about my issue.

  • Suggested answer
    Gaurangkumar Jani Profile Picture
    Gaurangkumar Jani 4,512 User Group Leader on at
    RE: Project estimates on contract currency (not company currency)

    Hi Nick,

    Don’t you think by doing this process you are violating IFRS15?

    I would suggest to check the legality or authenticity of this process from your Accounting consultant.

    Thanks,

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