An enterprise may carry on activities involving foreign exchange in two ways. It may have transactions in foreign currencies, or it may have foreign operations. In order to include foreign currency transactions and foreign operations in the financial statements of an enterprise, transactions must be expressed in the enterprises reporting currency and the financial statements of foreign operations must be translated into the enterprises reporting currency
Table of Contents
1.0 Introduction: 2
2.0 Setups and Prerequisites: 2
3.0 Import currency Exchange Rate Process.4
3.1 Configure an exchange rate provider. 5
3.2 Import currency exchange rates. 6
4.0 How the Foreign currency Revaluation Runs. 9
4.1 Prepare to run foreign currency revaluation. 9
4.2 Foreign Currency Revaluation for General Ledger. 10
4.3 Reverse foreign currency revaluation. 15
5.0 Dual currency. 16
5.4 Vendor invoices, sales orders, and sales agreements. 17
5.5.2 Financial reporting.. 19
5.5.3 Accounts payable and Accounts receivable. 19
5.5.4 Cash and bank management 20
6.0 Conclusion. 27
1.0 Introduction:
An enterprise may carry on activities involving foreign exchange in two ways. It may have transactions in foreign currencies, or it may have foreign operations. In order to include foreign currency transactions and foreign operations in the financial statements of an enterprise, transactions must be expressed in the enterprises reporting currency and the financial statements of foreign operations must be translated into the enterprises reporting currency.
The principal issues in accounting for foreign currency transactions and foreign operations are to decide which exchange rate to use and how to recognize in the financial statements the financial effect of changes in exchange rates.
2.0 Setups and Prerequisites:
Foreign currency revaluation feature in dynamics 365 deals with the method of translating the value of all foreign currency-denominated open accounts into the reporting currency. All payable and receivable transactions that are due to be settled in foreign currency, expose a transaction risk, which refers to the adverse impact that movements in the exchange rate could have on the companies books.
These revaluations generate differences in the value of the companys monetary assets and liabilities, which get recorded under unrealized gains and losses. When the transaction is settled, the differences in value between the firm sale or purchase commitment and the payment date are recorded as realized FX gains/losses on the balance sheet.
2.1 Ledger setup
This setup is as below:
The Ledger page is also used to control and define the currencies that will be used when transactions are posted to the general ledger. You must specify the accounting currency, which is the currency that is used in the Accounting currency column in the general ledger on all vouchers. Additionally, in the Reporting currency column, you can optionally select a second currency. If you select a reporting currency, all transactions will be recorded in that currency in the Reporting currency column in the general ledger on all vouchers.
If transactions are posted in a different currency, the system automatically converts the transaction amount from the transactions currency into the accounting currency and reporting currency on the voucher. On the Ledger page, in the Accounting currency exchange rate type field, select the type of exchange rate that is configured for the exchange rates that should be used to convert values from the transaction currency to the accounting currency on a voucher. If you selected a reporting currency, you must also set the Reporting currency exchange rate type field to indicate the exchange rate that should be used to convert values from the transaction currency to the reporting currency on a voucher.
If you’re using budgeting functionality, you can also set the Budget exchange rate type field to indicate the exchange rate that should be used to convert budget transactions from one currency to another.
2.2 Single or Dual currency
If you use two currencies, or if you use a single currency but transactions are posted in a different currency, you must configure the Accounts for currency revaluation FastTab on the Ledger page. On this FastTab, you define the default realized and unrealized gain and loss accounts that will be used by default when transactions are posted, if no account is specified on the Currency revaluation accounts page. (The Currency revaluation accounts page is used to configure different accounts for realized and unrealized gains and losses for each currency.)
Realized gains and losses are profits and losses that are made from completed transactions. They are recorded on the profit and loss statement. Unrealized gains and losses are profits and losses that have materialized, but the transaction isn’t completed. In other words, you’ve posted an invoice, for example, but the invoice isn’t yet settled and paid. Unrealized gains and losses are recorded on the balance sheet.
For more information about how to use two currencies, see Dual currency 5.0.
3.0 Import currency Exchange Rate Process
If a legal entity has received invoices in foreign currencies, the foreign currency must be converted into the local currency. This means that up-to-date exchange rates for different currencies are required. This topic provides an overview of the settings and processing required to import foreign exchange reference rates that are published by exchange rate providers, such as the OANDA Rates®
The following sections describe the flow of information that is used for setting up and processing the import of foreign exchange rates.
3.1 Configure an exchange rate provider
Before you can import exchange rates, you must set up the information that is required by the providers who offer the exchange rates. Use the Configure exchange rate providers page (General Ledger > Currencies) to select the exchange rate providers. Some exchange rate providers are included with the demo data in Dynamics 365 Finance.
The following table provides descriptions for the controls on this page.
| CONFIGURE AN EXCHANGE RATE PROVIDER | |
| Field | Description |
| Name | The name of the exchange rate provider. |
| Key | The unique identifier for each piece of configuration information that is required by the provider. This information is automatically added for each exchange rate provider that you add. |
| Value | Information for each key. This information is added for each exchange rate provider that you add. |
3.2 Import currency exchange rates
You must import exchange rates from the exchange rate providers source and add them to the Currency exchange rates. (General Ledger > Currencies) Use the Import currency exchange rates page to import the exchange rates.
The following table provides descriptions of the fields that are required to successfully complete the import process.
| IMPORT CURRENCY EXCHANGE RATES | |
| Field | Description |
| Exchange rate type | An exchange rate type. |
| Exchange rate provider | An exchange rate provider. OANDA Rates® |
| Import as of | This parameter manages whether to import as of the current date or for a specific date range. If you want to use a date range, enter or select the start and end dates. |
| Create necessary currency pairs | This check box manages the automatic creation of currency pairs, if the currency pairs that are imported do not exist. This option might not be available for some providers. |
| Override existing exchange rates | This check box manages the update of the existing exchange rate for a currency pair when the exchange rate for a specific date already exists. If you do not select this check box, the exchange rate for the specific dates is not imported if another exchange rate already exists. |
| Prevent import on national holiday | This check box manages the import of the exchange rate for public holiday’s date. For example, if you select this check box and use the European Central Bank as the exchange rate provider, the system will not update the exchange rate on a public holiday that is related to the current legal entity. This option might not be available for some providers. |
| Rate from the previous day | This check box is available if you enable ECB import on the current or previous date feature on the Feature management page. This check box is only available for the provider, Central Bank of Europe. Select this check box to import the currency exchange rate that is published by the European Central Bank on the previous working day at approximately 16:00 CET. By default, the check box is selected. Clear this check box to import the currency exchange rate that is published on the same working day. |
Below Image shows the updated exchange rates at Currency Exchange Rates Page.
4.0 How the Foreign currency Revaluation Runs
Foreign Currency revaluation in dynamics 365 can be performed on all open transactions at the ledger and sub-ledger level as depicted below.
Lets see how it works.
4.1 Prepare to run foreign currency revaluation
Before you run the revaluation process, the following setup is required.
On the Main account page:
If the main account should be revalued in General ledger, select Foreign currency revaluation. If the main account shouldnt be revalued (such as for AR and AP if revalued in the subledgers), clear this option.
If the main account is marked for revaluation, enter the Exchange rate type. This exchange rate type will be used for revaluing the main account. A separate field, Financial reporting exchange rate type, is available for financial reporting. The two fields are not kept in sync, allowing for different exchange rate types to be used for revaluation and financial reporting.
On the Ledger page(as per 2.1 above):
Specify the Exchange rate type. If the exchange rate type is not defined on the main account, this exchange rate type will be used during foreign currency revaluation.
Specify the realized gain, realized loss, unrealized gain, and unrealized loss accounts for currency revaluation. Realized gain and realized loss accounts are used when settling AR and AP transactions, and unrealized gain and unrealized loss accounts are used for revaluing open transactions and general ledger main accounts.
On the Currency revaluation accounts page:
Select different currency revaluation accounts for each currency and company. If no accounts are defined, the accounts from the Ledger page are used.
4.2 Foreign Currency Revaluation for General Ledger
As part of a period-end, accounting conventions require general ledger account balances in foreign currencies to be revalued using different exchange rate types (current, historical, average, etc.).
Below are the Basic Steps:
- Run the Foreign Currency Revaluation
- Verify the transactions
- Update adjustments in transactions (If Any)
- Post the Revluation (Rerun if you closed to adjust)
For example, one accounting convention requires assets and liabilities to be revalued at the current exchange rate, fixed assets at the historical exchange rate, and profit and loss accounts at the monthly average. The General ledger foreign currency revaluation can be used to revalue the balance sheet and profit and loss accounts.
Navigate to General Ledger > Periodic Tasks > Foreign Currency Revaluation.
- From Date and To Date: Define the date interval for calculating the foreign currency balance that will be revalued. When you revalue profit and loss accounts, the sum of all transactions that occur within the date interval are revalued.When you revalue balance sheet accounts, the From date is ignored. Instead, the balance to be revalued is determined by going from the beginning of the fiscal year until the To date.Date of rate: This date can be used to define the date for which the exchange rate should default. For example, you can revalue the balances between the date ranges of January 1 to January 31, but use the exchange rate defined for February 1.
- Main account to include: Select which main accounts to revalue: All, Balance sheet, or Profit and loss. Only main accounts marked for revaluation (on the Main account page) will be revalued. If you want to further restrict the range of main accounts, use the Recordsto include tab to define a range of main accounts, or individual main accounts.
- Legal entity: The revaluation process can be run for one or more legal entities. The lookup will display only the legal entities to which you have access. Select the legal entities for which you want to run the revaluation process.
- Currency to revalue: The revaluation can be run for one or more foreign currencies. The lookup will include all currencies that were posted within the date range relevant for the type of main account (Balance sheet or Profit and loss), for the legal entities selected to revalue. The accounting currency will be included in the list, but nothing will be revalued if the accounting currency is selected.
- Preview before posting: Set Preview before postingto Yes if you would like to review the result of the General ledger revaluation. The results of the preview can be exported to Microsoft Excel to retain the history of how the amounts were calculated.
From the preview, the user has the option to post the results of all legal entities using the Post button. If theres an issue with the results for a legal entity, the user also has the option to post a subset of the legal entities using the Select legal entities to post button.
After the foreign currency revaluation process is complete, a record will be created to track the history of each run. A separate record will be created for each legal entity and posting layer.
Unrealized gain / loss transactions will be created in General Ledger.
Once the revaluation is completed; the system will show the voucher as per below.
4.2 Reverse foreign currency revaluation
If you need to reverse the revaluation transaction, select the Reverse transaction button on the Foreign currency revaluation page. A new foreign currency revaluation historical record will be created to maintain the historical audit trail of when the revaluation occurred or was reversed.
You can reverse the results of the revaluation out of date order, but you may need to also reverse a more current revaluation to ensure the correct balances for each revalued main account. The reversals can occur out of date order because there is no way to control which main accounts are revalued and the frequency of when they are revalued. For example, an organization may choose to revalue their cash main accounts on a quarterly basis, but all other main accounts monthly.
It must be answered or reported that:
- Why you reversed the Revaluation? and
- Why you Re-run the Revaluation? (With or without reversal)
5.0 Dual currency
This functionality is referred to as dual currency. The changes for dual currency can’t be turned off through a configuration key or parameter. Because the reporting currency is used as a second accounting currency, the way that the reporting currency is calculated in the posting logic has changed.
In addition, several modules have been enhanced to track, report, and use the reporting currency in various processes. The modules that are affected include:
- General ledger
- Financial reporting
- Accounts payable
- Accounts receivable
- Cash and bank management
- Fixed assets
- Consolidations
After an upgrade, you must complete specific steps for Cash and bank management and Fixed assets. Therefore, be sure to read and understand the relevant sections of this topic.
5.1 Posting process
The posting logic has been changed for all transactions that generate an accounting entry to general ledger. Here is how the reporting currency was previously calculated:
Transaction currency amount > Accounting currency amount > Reporting currency amount
For example, a transaction is entered in the Canadian dollar (CAD) currency. The CAD amount is translated to the accounting currency, which is the US dollar (USD). The USD amount is then translated to the reporting currency, which is the euro (EUR). Therefore, the exchange rates must exist between CAD and USD, and between USD and EUR.
Here is the new calculation:
Transaction currency amount > Accounting currency amount
Transaction currency amount > Reporting currency amount
Because of this change, exchange rates must now exist between CAD and USD, and between CAD and EUR.
5.2 Reports and inquiries
Various reports and inquiries now show both reporting currency amounts and accounting currency amounts. Not every report and inquiry has been updated. For example, reports that show amounts only in the transaction currency haven’t changed.
The changes follow one of two patterns:
- If the report or inquiry had enough space to show amounts in both the accounting currency and the reporting currency, the reporting currency amounts were added.
- If the report or inquiry didn’t have enough space to show amounts in both currencies, an option was added so that users can select which currency is shown.
For various reports and inquiries, logic was also added to suppress the reporting currency amounts if the reporting currency is the same as the accounting currency, or if the reporting currency wasn’t defined on the ledger for the legal entity.
5.3 Financial journals
The financial journals, such as the general journal and vendor invoice journal, have been updated so that they include additional information about the reporting currency. Totals for the voucher and journal are now shown in the reporting currency. Additionally, information about the reporting currency’s exchange rate now appears on the General tab of the journal lines. Therefore, you can override the reporting currency’s exchange rate when you enter transactions.
5.4 Vendor invoices, sales orders, and sales agreements
Vendor invoices, sales orders, and sales agreements have been updated to include a fixed exchange rate for the reporting currency. A fixed exchange rate can be defined for both the accounting currency and reporting currency when the transaction currency is different. When the accounting currency and reporting currency are the same, the fixed exchange rate will be kept in sync by using the accounting currencys fixed rate as the reporting currencys fixed rate. The reporting currency fixed exchange rate cannot be changed for this configuration. When the accounting currency and reporting currency differ, a fixed exchange rate can be defined for both the accounting currency and reporting currency during transaction entry. If the reporting currency has not been defined on the ledger, the Reporting currency fixed exchange rate field is not enabled, and no reporting currency amount is calculated.
5.5 Module changes
The following modules use the reporting currency as a second accounting currency:
- General ledger
- Financial reporting
- Accounts payable
- Accounts receivable
- Cash and bank management
- Fixed assets
- Consolidations
5.5.1 General ledger
If a reporting currency was defined on the ledger, the general ledger already tracked reporting currency amounts on every accounting entry. However, those amounts are now translated from the transaction currency amounts.
The following additional changes were made in the General ledger module:
- A separate exchange rate type for the reporting currency can be defined on the ledger. If an organization doesn’t want to use a different exchange rate type, you can leave the field for the exchange rate type for the reporting currency blank. Alternatively, you can select the same exchange rate type that is used for the accounting currency. If you leave the field blank, the system uses the exchange rate type for the accounting currency.
- A new journal, the Reporting currency adjustment journal, enables adjustments to be posted to ledger accounts in the reporting currency only. This journal enables posting only to ledger accounts. It doesn’t support intercompany, and the currency must be the reporting currency of the legal entity where the journal is posted. When the journal is posted, the transaction currency and accounting currency amounts are 0 (zero), and the reporting currency amount is posted with the amount that is entered on the transaction. Because the way that the reporting currency is used in the Accounts payable, Accounts receivable, and Fixed assets modules has changed, this journal can be used for adjustments after an upgrade. For examples that show how this journal can be used, see the sections for those modules.
- The process for period allocation has been updated so that it allocates amounts in the transaction, accounting, and reporting currencies. Previously, amounts were allocated in the transaction and accounting currencies, and then the accounting currency amount was translated to the reporting currency. That behavior could cause a balance to remain on the ledger account in the reporting currency. Now, when amounts are calculated and used in the accounting entry, no translation occurs.
- The process for foreign currency revaluation already revalued amounts in the reporting currency. However, the reporting currency amount is now calculated through the transaction currency amount, as described in the Posting process section earlier in this topic.
- Many reports and inquiries in the General ledger already had the reporting currency, but a few didn’t. One example is the Trial balance list page. This list page now includes columns for both the accounting currency and the reporting currency. Note that the columns for the reporting currency are hidden if the accounting currency and the reporting currency are the same, or if no reporting currency was defined on the ledger.
5.5.2 Financial reporting
An enhancement to the Financial reporting module lets you include reporting currency amounts on a financial statement in two ways. On the column definition, you can report directly on the reporting currency amounts that are posted to the ledger (new functionality). Alternatively, you can continue to translate amounts from the accounting currency to the reporting currency (existing functionality).
This change is available through the Currency display setting in the column definition. If you select Reporting currency from ledger, amounts in the column aren’t translated. Instead, they are reported directly from the general ledger. If you want the column to show translated amounts, select the Translate to XXXX option, where XXXX is the reporting currency that the column should show. In this case, accounting currency amounts will be translated to the selected currency by using the existing translation functionality.
5.5.3 Accounts payable and Accounts receivable
The Accounts payable and Accounts receivable modules already tracked reporting currency amounts. However, the amounts weren’t shown or used for various processes. The following changes were made:
- Reporting currency amounts are now shown on transactions for both customers and vendors. Reporting currency amounts are also shown for the open balance of each transaction.
- The aging process has been updated so that an organization can view the aging buckets in either the accounting currency or the reporting currency.
- Various inquiries and reports were updated so that they show reporting currency amounts. Examples include the Customer to ledger reconciliation and Vendor to ledger reconciliation
- The process for foreign currency revaluation already revalued amounts in the reporting currency. However, the reporting currency amount is now calculated through the transaction currency amount, as described in the Posting process section.
- Upgrade consideration: Before an upgrade, the reporting currency amounts for documents (invoices, payments, and so on) are calculated through the accounting currency. For example, an invoice is posted before an organization upgrades, and the invoice isn’t paid. During the upgrade, the invoice’s accounting entry isn’t changed. However, after the upgrade, the changes for dual currency are in effect. Therefore, when a payment is made for the invoice, the payment’s reporting currency amount is now calculated through the transaction currency amount. When the payment and invoice are settled, a slight difference might be calculated in the realized gain/loss amount, because reporting currency amounts are now calculated differently. If the difference that is calculated is considered significant, the new Reporting currency adjustment journal can be used to adjust the balance of the realized gain/loss and Accounts payable/Accounts receivable ledger accounts in the reporting currency only.
5.5.4 Cash and bank management
Previously, the Cash and bank management module didn’t track any reporting currency amounts for transactions that were posted against each bank account. After an upgrade, reporting currency amounts are automatically tracked for any new transactions that are posted. However, reporting currency amounts must be added to previously posted transactions in the subledger.
- Upgrade consideration: Because bank account transactions didn’t previously track reporting currency amounts in the subledger, a wizard has been added so that you can add reporting currency amounts to bank account transactions. This wizard does not post to the general ledger again. Instead, it takes the reporting currency amounts from the general ledger and updates them in the subledger tables.
- To start the wizard, select Cash and bank management> Setup > Add reporting currency amounts to bank account transactions.
- The wizard shows transactions for all bank accounts in the current company that have a reporting currency amount of 0 (zero). Only transactions that were posted before the upgrade are included.
- For each bank account transaction, the wizard finds the corresponding accounting entries in the general ledger and enters a default reporting currency amount. Although the amounts can be edited, we recommend that you not edit them. Otherwise, you might not be able to reconcile the bank account balances to the general ledger. The only time that you should edit an amount should is if the reporting currency amount can’t be found in the general ledger. In that case, the wizard will show an amount of 0 (zero) for the reporting currency.
- If you select Cancel in the wizard, the bank account transactions and any changes to the reporting currency amounts are saved until the next time that you run the wizard. However, the reporting currency amounts aren’t updated on the bank account transactions. That update occurs only when you select Finish in the wizard. You can run the wizard multiple times. Therefore, you can fix any incorrect reporting currency amounts if you make a mistake.
- No processes in Cash and bank management were changed, but various reports and inquiries were updated so that they show reporting currency amounts. The cash flow forecasting reports are an exception. They weren’t updated to include the reporting currency amounts.
- https://docs.microsoft.com/en-us/dynamics365/finance/cash-bank-management/bank-revaluation
5.5.5 Fixed assets
Previously, the Fixed assets module didn’t track any reporting currency amounts for transactions that were posted against each fixed asset book. After an upgrade, reporting currency amounts are automatically tracked for any new transactions that are posted. However, reporting currency amounts must be added to previously posted transactions in the subledger.
In addition, major changes have been made to the depreciation process. These changes require user action after an upgrade. It’s important that you read and understand the following changes, even if you aren’t yet using Fixed assets.
- The way that the depreciation process determines the reporting currency amount has changed. The following scenario compares how depreciation previously determined the reporting currency amount and how it determines the reporting currency amount now.
Depreciation scenario
An asset is acquired and posted with the following amounts. Note that the reporting currency amount is posted in the general ledger, but it isn’t stored in the Fixed asset subledger tables.
| TABLE 1 | |||||
| Transaction type | Transaction amount | Exchange rate | Accounting currency amount | Exchange rate | Reporting currency amount |
| Acquisition | 1,000,000 DKK | 2.0 | 500,000 USD | 2.5 | 200,000 EUR |
Previous depreciation for the reporting currency
At the end of the year, the depreciation proposal is run and calculates the following amounts.
| TABLE 2 | |||||
| Transaction type | Transaction amount | Exchange rate | Accounting currency amount | Exchange rate | Reporting currency amount |
| Depreciation | 50,000 USD | 1.0 | 50,000 USD | 2.6 | 19,230.77 EUR |
When the depreciation proposal is run, it calculates the accounting currency amount by using the depreciation method. It then translates that amount to the reporting currency by using the current exchange rate between USD and EUR. This translation causes issues, because the asset can’t be fully depreciated in the reporting currency when the spot rate is used.
New depreciation for the reporting currency
The depreciation process has been changed so that the reporting currency amount is also calculated by using the depreciation method. Here are the results when depreciation is run on the asset.
| TABLE 3 | |||||
| Transaction type | Transaction amount | Exchange rate | Accounting currency amount | Exchange rate | Reporting currency amount |
| Depreciation | 50,000 USD | 1.0 | 50,000 USD | 2.5
[!NOTE] Although this exchange rate is shown, it isn’t used to translate to the reporting currency. |
20,000 EUR |
When the depreciation proposal is run, it calculates both the accounting currency amount and the reporting currency amount by using the depreciation method. The amounts are then used in the accounting entry in the general ledger. No translation is done to determine the reporting currency amount.
- Upgrade consideration:Because fixed asset book transactions didn’t previously track the reporting currency, a wizard has been added so that you can add reporting currency amounts to fixed asset book transactions. This wizard does not post to the general ledger again. Because the way that the depreciation proposal calculates reporting currency amounts has changed, the wizard must be run and completed for every company before an organization can enter any depreciation transactions.
- To start the wizard, select Fixed assets> Setup > Add reporting currency amounts to fixed asset books.
- The wizard shows transactions for all fixed asset books in the current company that have a reporting currency amount of 0 (zero). Only transactions that were posted before the upgrade are included.
- The wizard does not pull the reporting currency amounts from the general ledger. As was described in the previous scenario, the reporting currency amounts that were originally posted to the general ledger incorrectly used the spot rate. Those amounts should not appear in the fixed asset subledger, because the next depreciation calculation will use the incorrect amounts. Instead, the wizard finds the exchange rate on the date of the first acquisition. It then uses that exchange rate to recommend the reporting currency amount that should be posted in the subledger. For example, here is what the wizard might show for the previous scenario.
| TABLE 4 | ||||||||
| Fixed asset | Book | Transaction type | Transaction date | Currency | Amount in transaction currency | Amount | Exch rate | Reporting currency amount |
| BUIL-00001 | 200_SLLT | Acquisition | 6/3/2016 | DKK | 1,000,000 | 500,000 | 2.5 | 250,000 |
| BUIL-00001 | 200_SLLT | Depreciation | 6/3/2016 | USD | 50,000 | 50,000 | 2.5 | 25,000 |
| BUIL-00001 | 200_SLLT | Depreciation | 6/3/2016 | USD | 50,000 | 50,000 | 2.5 | 25,000 |
| BUIL-00001 | 200_SLLT | Depreciation | 6/3/2016 | USD | 50,000 | 50,000 | 2.5 | 25,000 |
- Many customers tracked their asset transaction details in workbooks. These details include the exchange rates and amounts. If you have this data in a workbook, you can create a custom exchange rate type and update it with the exchange rates from the workbook. This exchange rate type will then be used to enter a default exchange rate on the acquisition date and calculate the reporting currency amount. If an exchange rate type isn’t selected, the wizard uses the exchange rate type that was defined on the ledger.
- The exchange rate and reporting currency amounts can be changed. If the exchange rate is changed, the reporting currency amount is recalculated by using the new rate.
- If you select Cancelin the wizard, the fixed asset book transactions and any changes to the exchange rate or reporting currency amounts are saved until the next time that you run the wizard. However, the reporting currency amounts aren’t updated on the fixed asset book transactions. That update occurs only when you select Finish in the wizard. You can run the wizard multiple times. Therefore, you can fix any incorrect reporting currency amounts if you make a mistake.
- When the reporting currency amounts are completely updated in the subledger, you must set the Have you updated all the reporting currency amounts on the fixed asset book transactions? option to Yes and then select Finish. Depreciation calculations can’t be completed until you set the Have you updated all the reporting currency amounts on the fixed asset book transactions? option to Yes. After that option is set to Yes, the wizard is no longer available.
- After the fixed asset transactions in the subledger are updated with reporting currency amounts, those amounts won’t match the amounts that were originally posted to the general ledger. However, the Reporting currency adjustment journal can be used to update the balances of the depreciation ledger accounts in the general ledger, so that they match the amounts that were originally posted.
- A new Asset transaction reporting currency amounts entity that has been added in the Data management workspace lets you export the data from the wizard. You can then use the data to determine the balance in the fixed asset subledger for the depreciation transactions. That balance can then be used to determine the amount of the reporting currency adjustment in the general ledger.
- Upgrade consideration: New setup fields have been added to fixed assets and are used in the depreciation calculation. You might have to update these fields before the next depreciation calculation.
- On the fixed asset book (Fixed assets> Books), the General FastTab has a new Acquisition price in reporting currency
- On the fixed asset book (Fixed assets> Books), the Depreciation FastTab has a new Expected scrap value in reporting currency
- In the Fixed asset parameters (Fixed assets> Setup > Fixed asset parameters), the General FastTab has a new Minimum depreciation amount in reporting currency
- On books (Fixed assets> Setup > Books), the General FastTab has two new fields: Round off depreciation in reporting currency and Leave net book value at reporting currency.
- Because the depreciation proposal now calculates amounts in both the accounting currency and the reporting currency, the Fixed asset journal has been updated so that it shows depreciation amounts in the reporting currency. For depreciation transactions, the transaction currency is always the accounting currency. Therefore, those amounts will continue to appear in the Debit and Credit Two new columns, Debit in reporting currency and Credit in reporting currency, have been added to the grid.
- The new fields are available only when the transaction type is one of the four depreciation types: Deprecation, Depreciation adjustment, Extraordinary depreciation, or Special depreciation allowance.
- If a deprecation transaction type is entered in the Fixed asset journal, the reporting currency amounts will appear in the new columns. Those amounts can be changed.
- If the accounting currency and the reporting currencies on the ledger are the same, the amounts will be kept in sync. If you change the Creditamount, the Credit in reporting currency amount will automatically be changed so that it matches it.
- If any other transaction type is entered in the Fixed asset journal, the Debit in reporting currency and Credit in reporting currency amounts are never shown, either before or after posting. The accounting currency and reporting currency amounts are still available on the voucher that posts to the general ledger.
5.5.6 Consolidations
To enable this functionality, go to the Feature management workspace and select Enable dual currency functionality in General ledger consolidation.
In General ledger consolidation, a new option has been added to consolidate either the accounting or reporting currency amounts from the source companies. If the accounting or reporting currency is the same as the accounting or reporting currency in the consolidation company, the amounts will be copied directly rather than translated.
- You can now choose whether to use the accounting currency or the reporting currency from the source company as the transaction currency in the consolidation company.
- The accounting or reporting currency amounts from the source company will be copied directly to the accounting or reporting currency amounts in the consolidation company, if either of the currencies are the same. The accounting and reporting currency amounts in the consolidation company are calculated using the exchange rate if neither of the currencies is the same.
6.0 Conclusion
Finance Team must Audit and perform accurate transactions to achieve the Revaluation goals. Also, check the relevant accounting standards applicable to your region. Run, Verify and post the final version of the Fx revaluation. Avoid rerun to reduce reporting liabilities.
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