A colleague made the statement below but he is no longer working for the company:
‘NAV / Jet does not hold the original currency code for revaluations. It can be assumed every item is one currency if the rate is correct. However if an account holds 2 currencies it fails. Since the revaluation has zero affect on Transaction amount it is only the LCY and ACY by currency that are wrong’
My customer asked the question below:
To be honest, not a very clear statement, but from my perspective, I would just want clarification that if transactions in more than one currency are booked to a AP/AR sub-ledger account then NAV will calculate the correct FX revaluation result (from TC to LCY) on a currency by currency basis for that account.
Although I understand that the GL Entries does not contain the original currency amount on GL entries and ACY, I do not understand why it would be correct if only one foreign (transaction) amount is used, but incorrect if multiple foreign amounts are used.
Does this makes any sense to anyone and if so can you please explain to me?
let’s try to disassemble this… In the G/L, you have only LCY and ACY amounts, named “Amount” for LCY and “Add.-Currency Amount” for ACY. Regordless of what is being posted in NAV, the Transaction Currency and the resulting amount in TC won’t be there.
In Bank, Customer and Vendor Ledger you can have TC code and amount, named “Currency Code” and “Amount” (and derivatives). LCY amounts will be in all subledgers named “Amount (LCY)” (and derivatives). There is another catch: Standard NAV doesn’t write the TC amount into bank entries when the bank account allows multiple currencies (no currency code is set).
So… from a reporting point of view, it is a good idea to use “Amount (LCY)” where available, and “Amount” for the G/L. This will deliver consistent results.
Regarding accounts with different currencies: You can have this in the Bank, Customer and Vendor Ledger. For a bank account, it results in no adjustment available. Adjust Exchange Rates only adjusts the balance for bank accounts, and this must be one currency only from the first posting. The batch filters for currency code in the bank account. For customer and vendor accounts, it can be any mix of currencies. The batch does the adjustment by entry (and by currency of the entry). This is a revaluation on a currency by currency basis.
All in all, the mistake you can make is to fetch the “Amount” fields from the subledgers in Jet and assume it’s LCY. Then you will get probably meaningless data. All other fields should be consistent.
Thank you for your detailed reply and apologies that I only reply to you now. I only returned from Mumbai yesterday and my customer’s restrictions on their network prevented me from picking up this message till today.
It all does make more sense to me now. The customer has 364 companies which will all be implemented on NAV and apart from only using ACY once before, I have never worked on such a big project until now. I will certainly pick up on this area as we are going live in August on the first 53 companies.
Here’s a link to the flyer: