Exchange Rate Differences

Hi All, one of my clients has reported an exchange rate difference when doing a Post Application. Let me explain. They order goods from a US vendor and when it is shipped they pay for it and raise a Payment Journal. On the Payment Journal they ensure that the exchange rate at the time is specified and post it. When the goods arrive in the UK they raise a Purchase Journal, document type Invoice again ensuring that the exchange rate is the same as the Payment Journal or changing it if it is different and post it. Some time later they go to apply entries, Shift F9 on the Invoice, F9 on the payment and post application. As I said sometimes thee is a different which goes to the Exchange Rate Discrepancy account. I cannot reproduce it in the test system, could this be a setup issue. They are using version 4.0…thanks

Wsn’t there an issue with Navision reading the date of the application and getting the exchange rate from the application date? I cannot remember and it could be a false memory, but process the journal and payment, alter the exchange rates in between and after the transactions, then apply it today, so Navision thinks there are three different rates one for each date of the transaction, payment, invoice and allocation. I am probably talking rubbish though as it is Friday afternoon!

I saw there are problem in 4.0 in application between different currencies (e.g. invoice in USD and payment in GBP) I will test in SP2 as soon as I’m able to install it. Another point is that usually when you apply you should select payment Shift+F9, then invoice F9, this is to be sure the application will take care of Discount Payment, I don’t know if this could influence calculation of exchange differences.

Hi Steven, this is exactly what I was wondering but I cannot reproduce it. Regardless of what exchange rate (wierd or sensible) or amounts (small and large) I cannot reproduce what they are saying. Sure enough though they are getting this as I can see the small amounts in the discrepancy account. Hi Sgrunt, thanks for the suggestion about selecting payment first but in his case there were no discounts involved and its was all in dollars

I’ve one question for you, since they apply after posting, you should be able to look at the two original entries in Detailed Vendor Ledg. Entry and see the LCY Amounts in the Initial Entry record. Did you control that entries? Have they the same LCY Amount?

Hi, I’ve created a sample Navision process documentation. I’ve used Adjust Exchange Rate batch job for the sample. You can find it at my site: It might help you figure out where the problem is. Borut

Hi Borut, thank you for the info, I will check it out and see if it helps my problem…Paul