Exchange variation calculation

We have encountered a problem with Navision’s exchange variation calculation routine and have had no luck in resolving it. Would like to hear from anyone with similar experiences. Navision does not correctly apportion exchange differences on closed transactions. This poses a problem in the following situation (I will describe it step by step so you can duplicate it): 1. On 05 Jan., post a foreign currency invoice dated 20 Dec. (posted to 20 Dec). 2. Post collection of the invoice on 10 Jan. 3. Run FX routine on 31 Dec and again 15 Jan. When you run the exchange variation routine at month-end (31 Dec.) nothing will post for this invoice since it is not posted until 05 Jan. When you next run the exchange variation routine, it will post the entire exchange variation from 20 Dec. through 10 Jan. in January. Our financial statements are incorrect because the exchange variation from 20 Dec. through 31 Dec. is posted in the incorrect period. Our auditors have raised this as a significant concern, and do not feel that Navision is IAS-compliant, as a result. It is NOT POSSIBLE for us to “manually” fix this by always running the exchange variation routine AFTER posting an invoice, and BEFORE posting the collection. We post from entries generated automatically by other systems. Because of the large volume of transactions, dispersed locations and the complexity of our invoicing, we frequently receive invoices days or weeks after the actual invoice date: 1. Invoices may be in transit from remote locations to the central office. 2. Invoices are finalized late because of issues with customers. 3. Errors occur and invoices must be corrected, thus posted late. We cannot guarantee that invoices will ALWAYS be posted prior to the collection; some are posted the same day or even after the collection. Running the exchange variation takes about 30 minutes and generates about 350 lines. This is NOT a process that we want to do daily. (we run multiple companies and have approximately 45 accountants working concurrently in 26 cities). Any suggestions welcome

Hi Ramon, Navision calculates and posts the exchange rate fluctuations in two situations: 1. Unrealized Gains & Losses: These amounts are calculated on running the ‘Adjust Exchange Rates’ Periodic Activity. The Program revalues all the OPEN invoices between the given dates. The revised exchange rate considered for this batch job would be values that are mentioned in the Adjustment Ex rates fields in the ‘Currency Exchange Rates’ window, with the Starting Date falling on or immediately before the ‘Posting Date’ mentioned on the options tab of the ‘Adjust Exchange Rates’ batch job. 2. Realized Gain & Losses: Would be calculated on the Application of the Payments against the respective invoice/s. As I understand from what you mentioned above……you would like to calculate the Unrealized FX Gains and losses at the year end. This you can do by running the ‘Adjust Exchange Rates’ function with the ‘Posting Date’ as ’31-12-XX’. Yes, its true that you need to run this batch job after every invoice you post in the previous period. However, you can opt to wait until you post all the invoices for the previous period. In case, you are posting the Payment on 10 Jan (as mentioned in the above case). You should not apply the Payment until you run the batch job. Else, you would lose the calculation of unrealized gains/losses at the end of the year. That would imply that you should run this function after posting every invoice. A simple solution would be that 1. Create all the prior period Invoices and Payments. Do not post them until the end of the day. 2. Batch Post all the Prior Period Invoices created during the day. 3. Run the batch job, so that the system calculates and posts the Unrealized Ex rate for these transactions. 4. Post the payments thus respective Applications. You should try avoiding cases where you post the collections first, especially if it is foreign currency and the Invoice pertains to the previous year. cheers, vikram vicky_loka@hotmail.com Sr.Consultant, Connect-IT Solutions Pvt.Ltd, The NaviWorld Group 1068, 7th ‘A’ Main, 3rd Block, Koramangala, Bangalore 560 034. INDIA Telephone: +91 80 5520512 Telefax: +91 80 5520673 Email: coits@vsnl.com URL: www.naviworld.com