Introduction

Recently I helped someone in the Business Central forum with a query on revaluing their bank accounts using the “Adjust Exchange Rate” batch job.

We went back and forth for a while, trying various things, however in the end it was resolved by providing a simple worked example of the whole process that the user could compare to their process.

Therefore I thought it might be useful to write this up for anyone else who may have similar issues and want to see the whole process in action. (and as a bonus I can also use it as a reference point in future 🙂 )

** For info the original forum post can be found here

The Scenario

In this scenario my local currency (LCY) is GBP and I have a EURO bank account with several transactions that I wish to revalue at month end using a rate of 1.5.

Step 1 – The initial transactions

To prepare for the revaluation I need some transactions on the EURO bank account. Therefore, I’ve posted the three entries below using different exchange rates.

The transactions total €600 with a LCY amount of £516.

Step 2 – Set the month end rate

Next, I set the month end rate of 1.5 in the Currency Exchange Rate page. This is the rate I want to revalue the bank account ledger entries at the end of month.

** For more info on how to set exchange rates, and what each field in this page means, I wrote this blog post.

Step 3 – Run the “Adjust Exchange Rate” batch job

Finally, I run the “Adjust Exchange Rate” batch job with a posting date of 30/11/22 and added a few additional filters to revalue the bank account ledger entries.

Step 4 – The Results

The system should create an adjustment of £116. This is because the bank account ledger entries total €600, which when revalued at the new rate of 1.5, equal an LCY amount of £400, and the current LCY amount is £516. Therefore an adjustment of £116 is required.

If we look at the General Ledger entries the Exchange Rate Adjustment has created, we can see this is exactly what has happened.

The system has also created a bank account ledger entry to record the exchange adjustment

Conclusion

The “Adjust Exchange Rate” batch job is an essential tool for companies that post transactions in foreign currencies and wish to revalue their customers, vendors and bank accounts.

However, one limitation to the routine is the inability to revalue an individual GL code, which some companies may find an issue, especially if migrating from Dynamics GP which has this functionality as standard. This is because only the LCY amount is held on the General Ledger Entries. (as well as the reporting currency which is something a little different)

Hopefully this functionality will be added in a later version of Business Central :).

Thanks for reading!