Transaction Currency and FX Gain/Loss in Dynamics NAV

Transaction Currency and FX Gain/Loss in Dynamics NAV only works for transactions that involve the Customer (Accounts Receivable), Vendor (Accounts Payable), and Bank (Cash) subledgers. This requires companies that have significant foreign currency balances on the balance sheet to always use one of these subledgers to get the system to calculate foreign exchange gains and losses. This simply does not make sense for transaction types that have nothing to do with one of these subledgers. For example, accruals, short term and long term debt instruments, and other miscellaneous transactions and balances that are only recorded with a General Journal should also be able to be entered in a Foreign Currency and the system should manage the foreign exchange gains and losses automatically on these entries.

Another related weakness of Dynamics NAV, similar to the above, is that the system will only allow entry application and track “open” entries in subledgers. So companies must manually prepare balance sheet reconciliations on balance sheet accounts that are not connected to subledgers. There is nothing in the general ledger that allows a user to apply one entry in a balance sheet account to another, without using the AR, AP, Bank, or Fixed Asset subledger.

Our firm, through our subsidiary Verosoft (a Microsoft Dynamics ISV), has developed a set of objects which resolves these “gaps” in Dynamics NAV functionality.

High-Level Summary of the Solution Features (Transaction Currency and FX Gain/Loss in Dynamics NAV):

• OPEN G/L ENTRIES: The ability to setup application functionality on a G/L account and apply (fully and or partially; GL entries within an account against each other. Entries can be applied at time of posting or they can be applied manually after postings (same functionality as the AR and AP subledgers.))

• TRANSACTION CURRENCY. Transaction Currency is captured on every single accounting entry in the G/L whether it is made from a subledger, it is a system entry, or it is a manual entry. If no currency is specified, the local currency is assumed and written to the G/L entry. Currency code can be specified on any G/L entry and it is written to the entry.

• FX GAIN/LOSS on G/L ENTRIES. Unrealized FX gain/losses are calculated and posted on open GL entries with the “Adust Exchange Rate Batch Job” in the same way they are calculated and posted for AR/AP and Bank entries. Realized FX gains/losses are calculated and posted when open entries are closed. The standard NAV Additional Reporting Currency is updated accordingly and works with this enhancement.

EmergeNext ADNM (an ADNM International group company)
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