Example: Unrealized foreign currency revaluation losses [AX 2012]

Updated: May 12, 2011

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

Example

The accounting currency has an exchange rate of 1.5 and the foreign currency has exchange rates of 12 on January 1, 12.5 on January 2, and 13 on January 3.

On January 1, a purchase order of 100.00 is created in the foreign currency, and on January 2, the foreign currency is revalued. (Click Accounts payable > Periodic > Foreign currency revaluation.)

Because the purchase order has not yet been paid, a transaction of 0.50 (12.50 – 12.00) in the accounting currency is posted to the ledger account that is selected in the Main account field, with an exchange rate posting type of Unrealized loss in the Currency revaluation accounts form.

On January 3, the vendor is paid. The foreign currency is revalued. The transaction of 0.50 in the accounting currency is reversed in the account in the Unrealized loss field.

A transaction of 1.00 in the accounting currency (13.00 -12.00) is posted to the account that is selected in the Main account field, with an exchange rate posting type of Realized loss in the Currency revaluation accounts form, because the loss has now been realized through the payment.


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