Foreign Currency Revaluation

  • Foreign Currency Revaluation

    Posted by Kim McDonald on January 4, 2024 at 2:08 pm

    We are testing in UAT with the intention of using revaluation in D365. We saw a scenario when we run the revaluation for a month’s time, a reversing transaction in that month when the original transaction was in a prior month, that reversing transaction is not being revalued. MS says this is intentional “because that is how the code is written,” but I’m looking for any semblance of business rationale on why this might be the case. Is anyone else using revaluation and running into this issue?

    (note, if the the reversing transactions is in the same month as the original transaction, and we revalue that month, both transactions are revalued)

    Kim McDonald replied 1 month, 2 weeks ago 3 Members · 5 Replies
  • 5 Replies
  • Joseph Hurylovich

    Member
    January 4, 2024 at 2:40 pm
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    Hi Kim,

    I feel that the rational used by MS for the code not making changes in a previous month would be by design. When running any type of inventory models requiring an inventory close, settlement of transactions, recalculation to update inventory values, trying to reverse a transaction in an already closed and settled period would present some financial issues within the GL. Now, while I am not a financial Consultant, I would certainly ask one for better clarity regarding this type of issue. Especially in a multi-currency system.

    Regards

    Joe

    • Kim McDonald

      Member
      January 11, 2024 at 1:34 pm
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      Thanks, Joseph. I would agree with that.

      However, this scenario if for a transaction that is reversing a transaction in an open period. In fact, both the original transactions in November and the reversing entry in December are open periods in our testing.

  • Kim McDonald

    Member
    February 15, 2024 at 4:46 pm
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    Just following up should anyone else question this. It went to Microsoft and the answer was “working as intended”. They were not able to give the business reason *why* it was designed that way (but plenty of code screenshots!). They suggested custom changes if we wanted it to work differently, even though they had a case from 2020 with many, many customer requests/complaints on this.

  • Zvika Rimalt

    Member
    March 19, 2024 at 10:39 pm
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    Kim – I am not clear of the situation.

    First – what kind of revaluation are you doing? for the GL? or for a sub-ledger (AP, AR, bank etc.)?

    Also , I am trying to understand the timing – you have a transaction in November, and you are running GL revaluation for November date range, but surprised why a transaction in December is not getting revalued?

  • Kim McDonald

    Member
    April 3, 2024 at 3:10 pm
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    Hello,

    The revaluation is at the GL ledger.

    The situation is this:

    1. we have a GL transaction in November

    2. we reverse the GL transaction in December

    3. we run the GL revaluation in December

    4. the revaluation process does not revalue the reversal transactions from #3.

    Thank you!

    Kim

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