Additional exchange rate type for foreign currency revaluation in D365

Exchange rate type enhancement for accounts payable and accounts receivable foreign currency revaluation, Exchange rate type enhancement for bank foreign currency revaluation. These features allow users to use additional exchange rate types for foreign currency revaluation.

Users can define the accounting currency exchange rate type and the reporting currency exchange rate type for each legal entity, or for each vendor group, customer group and bank accounts.

When user runs foreign currency revaluation, the defined parameter exchange rate types can override the default type in the ledger setup.

First, we need to Enable Exchange rate type enhancement for accounts payable and accounts receivable foreign currency revaluation, Exchange rate type enhancement for bank foreign currency revaluation features in Feature management.

Set up an additional exchange rate type for Accounts payable foreign currency revaluation

• Go to Accounts payable > Setup > Accounts payable parameters.

On the Ledger and sales tax tab > Foreign currency revaluation > Exchange rate type source field, select one of the following options:

• Ledger – User can select Ledger in exchange rate type source, the exchange rate type which is defined in the ledger setup will be followed.

• Specific – User can select specific in exchange rate type source, where user can select the accounting currency exchange rate type and reporting currency exchange rate type that are defined in the current legal entity.

• Group – User can select group in exchange rate type source, the accounting currency exchange rate type and reporting currency exchange rate type that are defined in the vendor groups as shown below.

Set up an additional exchange rate type for Accounts receivable foreign currency revaluation

• Go to Accounts receivable > Setup > Accounts receivable parameters.

• On the Ledger and sales tax tab > Foreign currency revaluation > Exchange rate type source field, select one of the following options:

• Ledger – User can select Ledger in exchange rate type source, the exchange rate type which is defined in the ledger setup will be followed.

• Specific – User can select specific in exchange rate type source, where user can select the accounting currency exchange rate type and reporting currency exchange rate type that are defined in the current legal entity.

• Group – User can select a group in exchange rate type source, the accounting currency exchange rate type and reporting currency exchange rate type that are defined in the customer groups as shown below.

Set up an additional exchange rate type for cash and bank management foreign currency revaluation

• Go to Cash and bank management > Setup > Cash and bank management parameters.

• On the General tab > Foreign currency revaluation > Exchange rate type source field, select one of the following options:

• Ledger – User can select Ledger in exchange rate type source, the exchange rate type which is defined in the ledger setup will be followed.

• Specific – User can select specific in exchange rate type source, where user can select the accounting currency exchange rate type and reporting currency exchange rate type that are defined in the current legal entity.

• Bank – User can select Bank in exchange rate type source, the accounting currency exchange rate type and reporting currency exchange rate type that are defined in the Bank accounts as shown below.

Conclusion:

Incorporating an additional exchange rate type for foreign currency revaluation in Dynamics 365 offers organizations enhanced flexibility and precision in managing currency fluctuations. By tailoring revaluation settings to match specific business requirements, companies can gain more accurate financial insights, improve compliance, and streamline global financial operations. Whether aiming for standardized or custom revaluation approaches, Dynamics 365 provides a robust framework for effective foreign currency management.