Multi Currency

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 Microsoft Dynamics Business Central has multi-currency functionality in the Customer, Vendor and Bank ledgers, but does not have full multi-currency functionality in the General Ledger. The General Ledger does not include the transaction currency (TCY), so you cannot see the foreign currency amounts in the General Ledger. This is a problem for companies that have balances in foreign currency amounts in any account in the Balance Sheet other than the customer, vendor and bank control accounts.  For example, a company that has a $3 million foreign currency loan cannot revalue that loan in the standard version of Business Central unless the loan is set up as a vendor account, which causes issues with the payables ledger since you now have trade payables mixed in with loan balances. The Apptitude Multi-Currency App adds full multi-currency functionality to the general ledger and allows companies to revalue their Balance Sheet at month-end or quarter-end. The app also simplifies the way exchange rates are entered in a more intuitive way and improves the revaluation process. 

The Local Currency Amount (LCY) is the "functional currency" of each company. As defined by IAS 21, the "presentation currency" is the Additional Reporting Currency (ACY) in Business Central.  The Transaction Currency Amount (TCY) is the amount in the foreign currency.  The LCY amounts are revalued from the Transaction Currency Amounts (TCY) and not from the ACY amounts.  This is an improvement over the standard functionality which only allows the ACY amount to be revalued from LCY amount or vice versa. 

The app provides a function to suppress the revaluation of the LCY amount in any account, for example non-monetary and equity accounts in the Balance Sheet, to meet local GAAP requirements.  The revaluation of ACY amounts from LCY amounts meets IAS 21 and ASC 830 requirements. The ACY amounts for all Balance Sheet accounts will be revalued and any exchange gains and losses will be posted to Other Comprehensive Income.

Foreign currency transactions entered into the Vendor, Customer or Bank Ledgers will retain their currency code when posted into the General Ledger, and in addition you will be able to enter foreign currency transactions directly into the General Ledger using journal entries.

Currency gains and losses that arise from the revaluation of bank accounts will be treated as unrealized gains and losses. This is a departure from Microsoft which recognizes these gains and losses as realized.  Realized gains and losses do not arise until funds are transferred from one currency to another or when there is a cash payment or receipt. 

In addition, we have added a currency exposure report which allows "what-if" modelling to see the impact of changes in exchange rates. This allows you to analyze the impact of changes in exchange rates.