Dynamics 365 Business Central – Making sense of the Currency Exchange Rates Page when setting Exchange Rates

Introduction

Coming from a Dynamics GP background I initially found the exchange rate setup in Dynamics 365 Business Central a little confusing. In Dynamics GP you set an exchange rate, and then configure whether you wish the system to divide or multiple the foreign currency amount by that rate, to get the local currency amount, and that’s it.

However, in Dynamics 365 Business Central things are a little different. In this post I’ll walk through the key fields in the Currency Exchange Rates page to explain how you can set Exchange Rates in Dynamics 365 Business Central.

** This post only goes through setting Exchange Rates for Documents. It doesn’t touch on the Exchange Adjustment side of things.

Currency Setup

To access the “Currency Exchange Rate” page you must first go to the “Currencies” page, highlight the currency in question, and then drill down on the “Exchange Rate”. Alternatively from the “Currencies” page you can highlight the currency and click “Process > Exch. Rates” as per below.

This should then open the “Currency Exchange Rates” window which is shown below:

As I mentioned previously this window looks a little confusing to me? It appears there’s more than one place to enter a rate for the same currency? There’s also no option to specify if you wish to divide or multiply the currency at a given rate? (which is something I’m used to). So where do you enter the rate exactly?

Making sense of it all

I’ve found the key fields in this window are the “Exchange Rate Amount” and the “Relational Exch. Rate Amount”.

The “Exchange Rate Amount” is the rate to use for the “Currency Code” selected on the line, and the “Relational Exch. Rate Amount” relates to the rate to use for the “Relational Currency Code”. (generally its left blank so its the local currency – see further below for an example where this isn’t the case)

This can be further explained in the image below

Therefore using the Currency Exchange Rates window shown above, as we have 1.0 in the Relational Exch. Rate Amount (GBP) and 1.3 in the Exchange Rate Amount (EUR) this means 1.3 Euros is equal to 1 GBP. (The “Exchange Rate Amount” is acting as the exchange rate)

Hence entering a transaction for €200.00 would equate to £153.85 (i.e. 200 / 1.3 = 153.85)

I could also flip this by entering 1.0 in the “Exchange Rate Amount” and 0.76923 in the “Relational Exch. Rate Amount” as per below:

This now means the “Relational Exch. Rate Amount” is acting as the Exchange Rate.

In this example €1 (Exchange Rate Amount) is equal to £0.76923 (Relational Exch. Rate Amount). Therefore entering a transaction for €200.00 would also equate to £153.85 (i.e. 200 * 0.76923)

Both would work exactly the same its just a slightly different configuration.

** I would tend to use the divide method as the rates make more sense in this scenario.

Bonus – Adding a Relational Currency Code

I’ve never come across a situation where the “Relational Currency Code” is anything other than blank (i.e. the local currency) however now we know how the relationships work let’s test this out.

I’ve therefore changed the Currency Exchange Rates page for EUR to include USD as the Relational Currency Code as per below

And the USD rate is below:

Therefore if I were to raise a €200 Invoice the GBP will be calculated as follows:

Step 1 Euros to USD :- €200 / 1.3 = $153.8462

Step 2 USD to GBP :- $153.8462 / 1.39 = £110.68

To confirm I added an Invoice in Business Central and below is the statistics page confirming our calculations

Conclusion

Although confusing at first (at least to me) understanding how the Exchange Rates are picked up and used is fairly straight forward. Its also flexible offering various options for how to calculate exchange rates.

Thanks for reading!

Dynamics 365 Business Central – A closer look at Journals and Documents

Introduction

Ever wondered why you have options to post to Vendors in a Sales Journal and Customers in a Purchase Journal? What do Documents and Journals have in common? How are Ledger entries and GL register created?

In this post I’ll explain more about Financial Journals and Documents and hopefully unlock some of their secrets along the way.

**Please note there are other journals such as Item Journals for inventory management which I wont cover in this post)

Journals

Journals are scattered throughout Dynamics 365 Business Central and can be used to record a whole manner of transactions. The most commonly used financial journals would be General Journals, Sales Journals, Purchase Journals, Cash Receipt Journals and Payment Journals.

Interestingly, under the hood all the journals are pretty much the same. All the journal pages are based on the Gen. Journal Line (81) table and all journals use the same Gen. Journal posting routine (codeunit) to create the relevant Ledger Entries and G/L Register.

As you can see from the image below although the General Journal and Sales Journal use different pages they are based on the same table.

The difference between the journals only really exists on their Pages and the actions and options available on those Pages.

For example the Payment Journal page has an action to run the “Suggested Payment Routine”, which is relevant to paying suppliers, and the other journals also have different actions. However, as they are all technically the same, nothing stops me creating a Payables Payment transaction in a Sales Journal and getting the correct Ledger Entries.

For instance, as you can see below although I’m in a Sales Journal I can still choose an Account Type of “Vendor”.

When you post the journal the relevant Ledger Entries and G/L Register are created and the journal lines are removed. (some exceptions exist like for recurring journals).

Therefore, taking all this into consideration, we could technically just use the “General Journal” page to record all of our financial transactions in Business Central, whether they be Sales or Purchase entries. We can also use one journal to record a whole host of different types of transaction. (as I show in this post)

Documents – Overview

When we refer to documents in Dynamics 365 Business Central we are referring to things like Sales Invoices and Purchase Invoices. (there are of course others such as Sales Orders, Sales Shipments, Purchase Orders, and Purchase Receipts)

They will have a Header and Lines, with the Header typically containing information on the Customer or Supplier and various dates, and the lines containing information or what you are selling or buying, for example items or GL codes.

When you post an Invoice, postings routines are ran to create the Ledger Entries and G/L Registers and new Posted Documents are created and the unposted document is removed. (you can archive Sales Orders using the archiving options in Setup)

For example if I were to Post a Sales Order via the “Ship and Invoice” option a Posted Sales Shipment and Posted Sales Invoice would be created along with financial Ledger Entries such as General Ledger and Customer Ledger Entries.

Documents – Posting

So what do Documents and Journals have in common? What makes them technically the same when it comes to the creation of the Ledger Entries and GL Registers?

As mentioned above when you post a Document the system runs posting routines to create the relevant ledger entries and it turns out these are the exact same posting routines that run when you are posting a journal (whether that be a General Journal, Payment Journal etc).

The posting routine responsible for this is “Codeunit 12, Gen. Jnl.-Post Line”. This is responsible for creating all the Financial Ledger Entries and G/L Register regardless of whether you are posting a journal or a document.

Therefore when you post a document its converted into journal lines, the lines then validated, and finally its posted in the same way as a journal.

Conclusion

The Gen. Journal Line table and Gen. Jnl.-Post Line codeunit do feel like the heart of Dynamics 365 Business Central. (certainly the financial heart)

I hope this article helped explain some of the concepts around journals that I found confusing when I started out with Business Central.

Thanks for reading!

Dynamics GP to Dynamics 365 Business Central – A handy list of equivalent Tables and Windows to help a GP user navigate BC

Introduction

In this post I’ve created a list of Dynamics GP tables and windows along with their Dynamics 365 Business Central counterparts. I’m hoping this will give any GP user venturing into BC a greater insight into how to navigate around Business Central and also which tables store the data. (I’ve included tables because us GP folk like to have a good nosy and understanding of things under the hood:))

At the moment this only includes General Ledger, Sales and Purchase information however I may add to the list in the future.

Please note the GP Window column lists the name of the window in GP. The BC Page column is the name of equivalent page in BC. Its also how you would search for the page in BC using the “Tell me” magnifying glass in the right hand corner of the Business Central screen.

General Ledger

DescriptionGP TableGP WindowBC TableBC Page
General Ledger CodesGL00100 / GL00105Account MaintenanceG/L Account (15)Chart of Accounts
Unposted GL JournalsGL10000 / GL10001Transaction EntryGen. Journal Line (81)*General Journals
Posted / Open GL JournalsGL20000Journal Entry EnquiryGL Entry (17)General Ledger Entries
History GL JournalsGL30000Journal Entry EnquiryGL Entry (17)General Ledger Entries

* Please note General Journals, and any other journal for that matter, can be used to post a whole manner of GL, Sales and Purchasing Transactions in Business Central.

SOP / Sales Ledger

Description GP TableGP WindowBC TableBC Page
Customer MasterRM00101Customer MaintenanceCustomer (18)Customers
* Unposted RM TransactionRM10301Receivables Transaction EntryGen. Journal Line (81)Sales Journals
Unposted RM Cash ReceiptRM10201Cash Receipts EntryGen. Journal Line (81)Cash Receipt Journal
Posted RM TransRM20101Receivables Transactions Enquiry – DocumentCust. Ledger Entry (21)Customer Ledger Entries
History RM TransRM30101Receivables Transactions Enquiry – DocumentCust. Ledger Entry (21)Customer Ledger Entries
Unposted SOP TransSOP10100 / SOP10200Sales Transaction EntrySales Header (36) /
Sales Line (37)
Sales Orders / Sales Invoices etc
Posted SOP TransactionsSOP30200 / SOP3030Sales Order Processing Document EnquirySales Invoice Header (112) / Sales Invoice Line (113)Posted Sales Invoices / Posted Sales Credit Memos

* These type of invoices/credits can also be entered via “Sales Invoices” in BC using GL Codes rather than items.

POP / Purchase Ledger

DescriptionGP TableGP WindowBC TableBC Page
Vendor MasterPM00200Creditor MaintenanceVendor (23)Vendors
*Unposted PM TransactionsPM10000Payables Transaction EntryGen. Journal Line (81)Purchase Journal
Unposted PaymentPM10300Edit Vendor PaymentGen. Journal Line (81)Payment Journal
Unposted Manual PaymentPM10400Payables Manual Payment EntryGen. Journal Line (81)Payment Journal
Posted PM TransactionsPM20000Payables Transaction Enquiry – Document
Vendor Ledger Entry (25)
Vendor Ledger Entries
Paid History PM TransactionPM30200Payables Transaction Enquiry – DocumentVendor Ledger Entry (25)Vendor Ledger Entries
Work Purchase OrdersPOP10100 / POP10110Purchase Order Processing Document EnquiryPurchase Header (38) / Purchase Line (39)Purchase Orders
History Purchase OrdersPOP30300 / POP30310Purchase Order Processing Document EnquiryPurchase Header Archive (5109) / Purchase Line Archive (5110)**Purchase Order Archives

* These can also be entered via “Purchase Invoices” using GL Codes rather than items.

** Archive Orders must be switched on for completed purchase orders to be archived.

Please note there are no equivalent summary windows in Business Central. Totalling and summary values are maintained by Flowfields in Business Central rather than separate tables. See this post for more details.

Conclusion

This is far from a comprehensive list however I’m hoping it contains enough information for someone moving from GP to BC to get started. There are also many more windows in GP and BC that hold similar information, or different ways of displaying the same information. The ones displayed above are just the ones I’ve chosen.

Thanks for reading!