Microsoft continues to invest in Business Central, listening to the end user’s requests. The last couple of upgrades have included feature improvements to the currency functionalities. While the advanced dimension choices in currency adjustments are great, today I want to focus on the new Source Currency and G/L account revaluation feature.
Why Use the Feature?
Before this feature, if you needed the system to calculated exchange gains or losses on transactions, you needed to use either a Customer, Vendor, or Bank Account. In this global economy, foreign currency contracts and debt are becoming more and more common. Now, you can use this new feature directly with a G/L account and bypass the need for a master record per currency to get the same results.
Feature Management
To start, head over to feature management to turn on the feature. You will have to log out and back in for the features to be available.
G/L Account Setup
Next, determine which accounts require the ability to revalue foreign currency transactions. Select the appropriate Source Currency Posting. Blank will allow all currencies. Both the Multiple Currencies and Same Currency will allow only those selected in the Source Currency Code table. LCY Only will allow only transactions in your local currency.
Now, lets set the currencies allowed on this account:
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Finally, set the account to revaluation to get the foreign exchange postings.
Transactions in local and foreign currency are posted to the G/L account:
In the G/L, we can see both the local currency and now the Source Currency and its value:
And the Source Currency (foreign balances):
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Now, let’s revalue the USD balance of the account at month end.
A journal entry is created to review:
The original foreign currency balance hasn’t’ changed, but now we have recognized exchange gain or loss and the USD balance this account is accurate for month-end reporting.
Final Thoughts
I’m looking forward to implementing this feature both internally and with our customers. With very little effort, Business Central is now providing quick, easy access to critical currency data and functionality. Happy revaluations!
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