MULTICURRENCIES In Business Central

 

• MULTICURRENCIES:

Currencies determine the prices for products in the product catalog and the cost of transactions, such as sales orders, purchase order etc.

How to setup currencies in D365BC?

1. Select the company code which is mandatory field. The code must comply with ISO 4217.

2. Give description for code.

3. Specify the symbol for currency that you wish to appear on check and charts.

4. Specify the general ledger account number to which unrealized exchange rate gains will be posted. When the adjust exchange rate batch is run.

5. Specify the account which realized exchange rate gains will be posted.

6. Specify the account for unrealized losses.

7. Specify the account for realized losses.

1. Specify the size of interval to be used when rounding amounts in this currency. You can specify invoice rounding in currency table.

2. Specify whether an invoice amount will be round up or down.

3. Specify the number of the program will display for amounts in the currency.

4. Specify the number of decimal places the program will display for currency.

5. Specify the size of interval to be used when rounding unit amounts in this currency.

6. Specify the unit number of decimal places the program will display for currency.

7. Specify how the program will round vat.

1. Specify G/L realized gains account.

2. Specify G/L realized losses account.

3. Specify Gains Accounts.

4. Residual losses account.

Exchange Rates:

• How to setup Additional Reporting Currencies in D365BC?

Using the Additional Reporting Currency feature helps.

Show more accurate balances/net changes in the local (LCY) and/or foreign currency on the    chart of accounts page

Show more accurate amounts in LCY and/or $ on financial reports.

Using the Additional Reporting Currency function can also save time and increase precision of reporting for companies that use foreign currencies. 

In order to make the additional reporting currency function work, it’s necessary to set up the following four areas:

• Currency Card

• G/L Account Card

• General Ledger Setup

• Adjust Exchange Rate function (batch job)

 

1. Currency Card:

Step1:

 

The first component needed is the Currencies list. You can use the search box in D365BC

To go to Departments> Administration> Lists> Currencies

The system requires the Currency card that is to be set up as an Additional Reporting Currency

The four fields the system needs on this card are

• Realized G/L Gains Account

• Realized G/L Losses Account

• Residual Gains Account

• Residual Losses Account

 

These accounts are required for the system to be able to do the background posting if necessary.

 

1. Select main account for Realized G\L Gains Account.

2. Select main account for Realized g\L Losses Account.

3. Select Residual Gains Account.

4. Select Residual Losses Account.

STEP 2: 

G/L Account Card:

It’s necessary to go to the Chart of Accounts list 

 Departments> Financial Management> General Ledger> Chart of Accounts.

On a G/L Account Card, under the Reporting Fast Tab, the following three options available:

1. No adjustment 

2. Adjust amount 

3. Adjust additional currency amount

1. No adjustment:

If this option is selected when the Adjust Exchange Rate batch job is run (even if the Adjust G/L Accounts for Add.-Reporting Currency option is selected), the system will not update any amounts on these G/L Accounts.

2. Adjust amount:

        If this option is selected when the Adjust Exchange Rate batch job is run, the system will only   adjust the LCY amounts on these G/L Accounts. Only local currency amount adjusted.

3. Adjust Additional- Currency Amount: 

       If this option is selected when you run the Adjust Exchange Rate batch job, the system will only adjust the $ amounts on these G/L Accounts.

 

Depending on a particular company’s needs, G/L Account purpose, and type, different options can be useful. Users may find the third option most useful in most cases

The Adjust Amount and Adjust Additional-Currency Amount options should only be used on G/L Accounts posting types. Using them on an End-Total will cause an error upon running the Adjust Exchange Rate batch job.

 

 Step3:

General Ledger Setup:

The General Ledger Setup needs to be updated.

Navigation:

Departments> Financial Management> Setup> Administration> General Ledger Setup

The field of interest here is Additional Reporting Currency, which is located on the Reporting Fast Tab:

Add the field Additional Reporting currency.

When a currency is selected, the system displays a warning message. It’s the responsibility of the user to make sure that benefits of taking this step outweigh any negative outcome (if any). Essentially, the system warns that:

 

• If another Additional Reporting Currency has been used before, general ledger (GL) entries will be posted in the new one from now on; and

• Analysis View Reports (analysis by dimensions) must be updated the next time a user needs to run them.

 

If the user accepts, the system will automatically open a dialogue window to run the function that recalculates already posted GL entries in the newly selected Additional Reporting Currency.

 

 

 

 

 

 

 

 

The three fields that are required to be filled out in this dialogue window are:

• Additional Reporting Currency (already selected based on the selection on the General Ledger Setup)

• Document No.—This is the description that will help users identify the GL entries that will be the result of running this batch job

• Retained Earnings Acc.

 

 

 

Step4:

he next time the Additional Currency Exchange Rates need to be updated, it’s necessary to go to the Currencies list and click on the Adjust Exchange Rates button in the ribbon.

Often, companies update Additional Currency Exchange Rates together with customer, vendor, and bank account rates. However, it can also be done separately if necessary. What’s important is that the Adjust G/L Accounts for Add.-Reporting Currency field must be selected. The Document No. (This is the description that the system will assign to the related GL entries) and other fields can be adjusted as required based on the company’s needs.