At present there is single exchange rate master for Accounts Payable and Accounts Receivable in MS Dynamics 365 Finance and Operations. This leads companies to non compliance of accounting standards. Finance users need to be change the exchange rates on vendor invoices as in D365 there is no scope to change the exchange rates in receivables. This leads to manual intervention in AP invoices before posting and also leads statutory audit query of why exchange rate is changed before posting.

IAS-21 (Para 26)
As per IAS 21- Para 26 there should be separate exchange rates for receivable and payable.

In this case IAS 21 prescribes that when several exchange rates are available, the rate used is that at which the future cash flows represented by the transaction or balance could have been settled if those cash flows had occurred at the measurement date – that’s stated in the paragraph 26 of IAS 21.'

Receivables and other monetary assets would be settled at the buy rate and payables and other monetary liabilities at the sell rate.

Requirement
MS D365 should have separate exchange rate masters for Accounts Payable and Accounts Receivable so that IFRS and Ind AS compliance is met for the companies and smooth invoices posting is done without manual intervention.