How to Adjust Exchange Rates in Microsoft Business Central: New Preview Posting Feature Explained
Introduction
For companies operating in diverse countries or regions, managing business transactions and financial reporting in multiple currencies is essential. Due to frequent fluctuations in exchange rates, it’s necessary to update these rates regularly in Business Central.
Microsoft recently released a new feature you can now see how an exchange rate adjustment will affect your records before finalizing it. Just use the “Preview Posting” option on the Exch. Rates Adjustment report (Report 596). You can choose to see either detailed or summarized results and decide how dimensions are managed for gains and losses.
Steps to achieve the goal:
– Enable the New Feature:
- Go to Feature Management and select Enable All Users for the new feature. This will activate it for your account.
– Access Exchange Rate Adjustment:
- On the Currency page, find the Exchange Rate Adjustment action. Click it to see the new fields available.
- Starting date and Ending Date: Set to which all transactions you wish to see adjusted.
- Posting date: Set the same date as Ending Date.
- Adjust Customer, Adjust Vendor, Adjust Bank, Adjust Employee, Adjust Additional Reporting Currency: Set All the booleans to marked true to adjust all Open Customer, Bank, Vendor and the G/L Account whose reporting is marked as Additional reporting currency.
- Preview Posting: If you want to see preview what all transactions system will calculated for you.
- Adjust per entry: If you want to adjust and post each and every adjustment entry if marked true or you wished to post consolidated entry.
– Choose Dimension Settings:
- Source Entry Dimensions: Dimensions from the entry being adjusted will be transferred to the G/L entries for unrealized gains and losses.
- No Dimensions: G/L entries for unrealized gains and losses will not include dimension values.
- G/L Account Dimensions: Dimensions from the unrealized gains and losses G/L account will be used for the G/L entries.
– Preview Posting View:
Note: Due to local regulations, it’s not recommended to enable the “Enable use of new extensible exchange rate adjustment, including posting review” feature in the Swiss (CH) version.
Conclusion
The steps outlined in this blog, you can effectively utilize this feature to maintain accurate records and enhance your organization’s financial management capabilities. Whether you’re adjusting for a specific period or managing multiple dimensions, this feature streamlines the process and helps you stay compliant with local regulations. Implement these practices to ensure your business remains responsive to currency fluctuations.
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