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) at all, so you cannot see the foreign currency amounts in the General Ledger. This is a problem for companies that have loan balances or accruals in foreign currencies, or any account with foreign currency transactions in the Balance Sheet or Income Statement 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 account unless the loan is set up as a vendor account. The Minerva Multi-Currency App adds full multi-currency functionality to the general ledger and allows customers to revalue their Balance Sheet and Income Statement at month-end. It also improves the way exchange rates are entered in a more intuitive way and improves the revaluation process. 

The Transaction Currency Amount (TCY) is the amount in the currency of that transaction. Foreign currency transactions entered into the Vendor, Customer or Bank Ledgers will retain their foreign 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. 

The Reporting Currency (RCY) is a new field added by the multi-currency app that is configured in a similar way to the existing Additional Reporting Currency.  The main difference being that the Reporting Currency can be revalued from the transactional currency TCY.   The Additional Reporting Currency (ACY) can only be revalued from LCY.

The Reporting Currency (RCY) can be enabled or disabled in the General Ledger Setup.  If you enable the Reporting Currency (RCY), Business Central will automatically record amounts in both Local Currency (LCY) and Reporting Currency (RCY) for each G/L transaction.  The Additional Reporting Currency (ACY) can also still be used with our app.  Thus, a single entry in the General Ledger can have up to four different currency amounts.

The ability to revalue the General Ledger from the transaction currency has been added in the multi-currency app. Local Currency (LCY) and Reporting Currency (RCY) will be revalued from the Transaction Currency Amount (TCY). This is an improvement over the standard functionality which only allows the Additional Reporting Currency (ACY) to be revalued from Local Currency (LCY) or alternatively the Local Currency (LCY) revalued from the Additional Reporting Currency (ACY). There is no revaluation from the transaction currency in the standard system, other than the three sub-ledgers (Vendor, Customer, Bank). Our app will allow any General Ledger account to be revalued, including both Balance Sheet and Income Statement accounts. 

Finally,  Currency gains or 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.