About foreign currency revaluations for open vendor transactions [AX 2012]

Updated: March 25, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

The theoretical value, or book value, of open vendor transactions in foreign currencies varies over time, based on fluctuations in the exchange rates.

To update the value of your accounts payable, and to conform with generally accepted accounting principles (GAAP) in the United States, run the periodic job for foreign currency revaluations. The job uses a new exchange rate to revalue the amounts that were open, or not settled, on a specified date. The differences between the original posted amounts and the revalued amounts are posted to the ledger. The differences are also posted to vendor accounts as unrealized transactions of the foreign currency revaluation. Transactions that had foreign currency revaluations on a more recent date are not revalued.

Before you revalue foreign currency amounts on open vendor transactions for a specific date, you can run a simulation of the foreign currency revaluation to view the potential financial effect of the revaluation.

When you post the foreign currency revaluation, you can view and print a report that shows the following information:

  • The balances of vendor accounts that have transactions that had foreign currency revaluations. Balances are shown in the original currency and the accounting currency. In other words, the balances before and after the foreign currency revaluation are shown.

  • The amount of the foreign currency revaluation for each vendor.

  • The total amount of the transactions of the foreign currency revaluation for each currency.

A record is kept every time that you run the periodic job for foreign currency revaluations. You can query and view all the ledger transactions and vendor transactions that the foreign currency revaluation generated.

For more information about foreign currency revaluation, see the following topics.

Topic

Description

Simulate a foreign currency revaluation

Provides information about how to run a simulation of a foreign currency revaluation.

Revalue foreign currency amounts for customers or vendors

Provides information about how to revalue foreign currency amounts.

View the transactions of a foreign currency revaluation

Provides information about how to view the transactions of a foreign currency revaluation.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).

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