Applies to Product - Dynamics 365 Business Central
What’s happening?
The customer is experiencing discrepancies in multi-currency reporting, specifically with their business unit operating in one currency and an additional reporting currency. The financial statements reflect incorrect calculations, showing values in the additional reporting currency lower than expected. While the income statement displays correct values, the balance sheet does not, leading to inconsistencies when drilling down into entries.
Reason:
This may be related to how the additional reporting currency is set up or how exchange rates are being applied in the system. Specifically, the "Adjust Exchange Rate" process may not be correctly revaluing the entire historical balance to the month-end exchange rate for balance sheet accounts. Setting a Starting Date in this process can lead to incomplete and inaccurate revaluation.
Resolution:
- Ensure that the average exchange rate is correctly set up for both the income statement and balance sheet dates.
- Confirm that the additional reporting currency is correctly configured in the system, allowing Business Central to automatically record amounts in both the local currency and the additional currency on each G/L entry.
- Run the "Adjust Exchange Rates" batch job to ensure that all posted entries are updated with the correct exchange rates. This process can help align the values in the balance sheet with the expected amounts.
- When running the "Adjust Exchange Rate" process, ensure that the Starting Date field is left blank to include all historical transactions.
- Check the status of the features "Enable use of extensible exchange rate adjustment, including posting preview" and "Enable use of G/L Currency Revaluation" in the Feature Management page. Any recent changes to these features could potentially affect the standard "Adjust Exchange Rate" process.
- After running the "Adjust Exchange Rate" process with a blank Starting Date, regenerate the Balance Sheet to see if the figures are now accurate.
- If the issue persists, focus on a single problematic balance sheet account and trace transactions from their original source document to the G/L entries to verify that the amounts are recorded correctly in both currencies.