Anuradha G

User wants to create deferral for previous months. Currently we have an option to override dates and process deferral for previous months.

But this is too much of manual work as customer has more than 500 invoices per month. They would like to have parameter to create deferral for previous months under "revenue and expense deferral parameter".

For now we have an option under deferral start date as beginning of the current month and beginning of the next month. If we can have some parameter like this to create deferral for previous months it would be great.

When the revenue recognition ends on 30.11 and you also have posting date 30.11, the exchange rate should not use the actual positing date (2^nd December).

In this example (which are using actual currencies from the actual period), this contract has a difference in contract value on 40735 USD because the exchange rate is using 2^nd December instead of 30^th november. This is making wrong accruals and many contracts with high amounts make very high differences in accruals than would be in the fiscal period end.

Business impact:

The issue of incorrect contract value calculations in fixed-price contracts denominated in foreign currency poses significant financial and operational risks. Specifically, when posting revenue recognition, the exchange rate for these contracts is inaccurately applied, as the rate from December 2nd is used instead of November 30th.

This discrepancy resulted in a $40,735 USD variance in the contract value for a single example, leading to incorrect accruals. When scaled across multiple contracts, particularly those with substantial values, the impact becomes materially significant. Such discrepancies distort financial statements, compromise the accuracy of fiscal period-end reporting, and could lead to regulatory non-compliance or audit findings.

Furthermore, the issue introduces inefficiencies as teams may need to perform manual corrections, increasing workload and the risk of errors. Addressing this problem promptly is crucial to ensure the integrity of financial reporting, maintain stakeholder confidence, and reduce operational inefficiencies.

Please refer to the work item 979192.

At https://learn.microsoft.com/en-us/dynamics365/finance/localizations/italy/emea-ita-competence-date is stated that "On the General ledger parameters page, on the Ledger tab, set the Transaction date reference to competence date option to Yes. After the competence date functionality is turned on, you can specify Transaction date as an acknowledgment date for each journal that can be used to post the adjustment and closing transactions for the fiscal year:".

Despite the checkbox is turned off the Transaction date (AcknowledgementDate) is automatically populated and can be manually adjusted.

At the same link is also stated that "you can specify Transaction date as an acknowledgment date for each journal that can be used to post the adjustment and closing transactions for the fiscal year:

General journal (General ledger_Journal entries_General journals), Fixed assets journal (Fixed assets_Journal entries_Fixed assets journal), Bank account reconciliation (Cash and bank management_Bank accounts_Bank accounts_Reconcile_Account reconciliation), Closing period adjustments (General ledger_Period close_Closing period adjustments), Year-end close (General ledger_Period close_Year end close_Run fiscal close), Project – Post costs (Project management and accounting_Periodic_Time and Material_Post Costs_Post), Project – Accrue revenue (Project management and accounting_Periodic_Time and material_Accrue revenue), Project – Estimate post (Project management and accounting_Periodic_Estimates_Post estimates), Project – Estimate reverse (Project management and accounting_Periodic_Estimates_Reverse estimates)" but the Transaction date (AcknowledgementDate) is automatically populated and can be manually adjusted also when it comes to vendor invoices for example.

Expected results: We should not be able to use the functionality without enabling “Transaction date reference to competence date option to yes”. And use this on accounts payable as this is not listed on document.