In the Accounting practice when dealing with foreign exchanges, we are required to book the expenses using the transaction date rate or average rates. At the end of the month, we are required to revalue the balance sheet balance using the month end rate, differences are booked to unrealized FX Gain/Loss.
In our situation, we have many intercompany transactions and usually book these transactions at the end of the month. Rather than having to book them in two separate entries, i.e.. first entry being booking at Average Rate then 2nd entry adjustment to balance sheet using the month end rate. We are doing the following entries as example:

Company A recharged expenses to Company B, rate as of 10/1/21 1 EUR to 1.15 USD, Month End rate 10/31/21 1 EUR to 1.10 USD

Company A (USD)- Parent company

DR. Intercompany Receivable $5,000
CR. Expense $5,000


Company B (EUR)- Subsidiary

DR. Expense 4,348 EUR (converted $5K to 10/1/21 rate)
CR Intercompany Payable 4,545 EUR (converted $5K at month end rate)
DR FX G/L 197 EUR


In the current Microsoft Dynamics system, it is only allowing us to use one currency rate to book the intercompany transaction. As we like how we would just book the entry in one entity and the Microsoft Dynamics system will automatically create/post intercompany transaction in the other entity, instead of us having to post entry in company A and then again in company B. But with this rates issue, this functionality does not help us at all. To properly account for this correctly, we must manually do the adjustment to month end rate monthly now. This defeated the purpose of us using the Intercompany functionality in Microsoft Dynamics. It is highly important to us to have the rates differentiated for us to feel comfortable using the intercompany function and actually save us time.