Comments
This is a serious gap in this product. Business is becoming more global and more and more companies are dealing in multiple currencies. Paul's statement at the top sums it up - it needs to be there.
Category: Financial Management
The fact that D365 and NAV do not allow GL Accounts to be revalued is a major competitive weakness in the marketplace. Most other products have this functionality and I believe some of the European versions of NAV, for example the Swiss version, have this functionality but it has not been implemented in the NA version.
The main requirement here is to add the transaction currency to the General Ledger Entries table and then allow GL Accounts to be revalued at month end. We also need a flag on the Account Card to indicate whether that account should be revalued. Some accounts, for example fixed assets, should not be revalued although the accounting standards are changing all the time so we need the flexibility to either revalue or not revalues specific accounts.
The revaluation of the Additional Reporting Currency is not usefull since you can only revalue the ACF from the LCY or the LCY from the ACF, neither of whihc makes any sense from an accounting point of view. In reality both LCY and ACF should be revalued from the Transaction Amount which is not in the GL.
In general terms the balance sheet accounts should be revalued at the month end exchange rate and the income statement accounts should either be not revalued at all, assuming the correct exchange rates were in the system during the month, or they should be revalued at an average exchange rate for the month.
Category: Financial Management
Hi Ivan,
In Singapore, BC clients have many investments in many different currencies e.g. USD, JPY, SGD, MYR.
Likewise they also have many Accrued Revenue in multiple currencies. End of the month they would need to revalue those balances like Vendors/Customers.
The workaround solution (with some gaps) was to let them use Bank to record each investments, and accruals. However, the results of Adjust Exchange Rates would pass the exchange gain/loss to Realized Exchange Gain/Loss Accounts, that is incorrect. It should be posted to Unrealized Exchange gain/loss accounts.
I have supported Sage 300, SAP Business One - both solutions capture Foreign currency Amount, Currency Rate in Posted GL Entries (similar to BC Customer ledger entries). In GL it provides Revaluation function to revalue specific GL account and allow user to specify the intended Exchange gain / loss accounts.
These fit perfectly well for Investment and accrual scenarios above.
When clients were evaluating BC, this is the downside which holding them back.
Category: Financial Management
Ivan,
Some businesses report and post P&L G/L accounts at spot exchange rate (i.e. sales), but balance sheet G/L codes such as bank accounts and receivables should be updated on a regular basis to book any applicable forex gains/losses. So while I understand that the job will update all G/L values based on one exchange rate, in this instance there should be an option to isolate certain G/L codes to run this job and not overwrite historical conversions on others.
Dan
Category: Financial Management
Hi Kartina,
Can you please detail business process / situations where G/L accounts should be valuated at different currency exchange rates? Adjust Exchange Rates batch job allows you to adjust currency exchange rates for G/L account if you are using additional reporting currency. E.g. German company reporting to US headquarters according to specific exchange rate for EUR/USD.
Regards
Ivan Koletic
PM, Microsoft
Category: Financial Management
I need this feature. We always revalue G/L account Balance. Not only the customers and vendors.
Category: Financial Management
Business Central Team (administrator)