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Exchange Rate Adjustment to update the G/L

Closing Month, Activities
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Presenter: Sune Lohse, Chief Strategy Officer

What is an exchange rate adjustment in Business Central?

When you have updated the exchange rates, you can update the exchange on the gain/losses account in the G/L. There is a batch job for the exchange rate adjustments. It adjusts everything according to the exchange rate update.

This is what happens in the video

I’m doing that in my currency list in here, and I have a functionality from process which is called adjust exchange rates.

Normally, I would just select an ending date.

Till whatever period I want to adjust to and it will default suggest posting description then I will just normally leave in here.

The normal thing would be to adjust customer, vendor, and bank accounts meaning that the entries on customers, vendors, and banks in the local currency amount will be adjusted according to the exchange rate defined by the update.

And if you have reporting currency, you could select here also if you want to adjust the reporting currency in your G/l. Normally, this is just the way you would do it and you could do it per currency or you can do it for all currencies.

Note that if you have currencies without exchange rate, the batch job will stop, so it would only run with currencies that actually have an exchange rate.

And I have to enter my document number. Something like that and I can select OK and it will update into my G/L. Note that it would only update the gain and losses account in the G/L and it will update my vendors and customers and bank accounts as it’s displaying.

And as you can see here, some of the currencies has been adjusted in this scenario if, of course, there was something to adjust and if I want to, I can go into my G/L to see what it actually did.

And here I can see my adjustment made on the March of 31 that I’ve just did going into my gains and losses account.

Your gain losses account is on the income statement and, of course, it will change if you have any very big differences in your exchange rate, but normally it will follow the time you’re selling and buying so, therefore, it’s only if you have huge amount of money on your bank, for instance, in other currencies than your local currencies.

It could have some rather big impact into your income statement, but it’s only made on the gain losses account.