I am busy with an implementation for a company which have 364 legal entities world-wide. This customer have third-party products which will be replicated to the master company, pick up the NAV data e.g Posting Groups from a template and then propagated to the rest of the companies.
I have an issue though… the local currency in their third party product have a currency against it. If these transactions is send to NAV the local currency would have a code and the NAV will treat it in the same way as a foreign currency.
Would there be any issues if the LCY have a currency code? I would be grateful for any input.
Do you mean to say the once transactions sent to NAV from third party will it change the value ?
Or Do you mean to say LCY code in Navision will affect the transactions.
Navision always maintain both the currency in transactions. You can put your foreign currency in Currency code field. System will automatically convert to LCY based on exchange rate.
When it is transferred into NAV it will have the GBP Currency Code instead of a ‘BLANK’ currency code as is standard in NAV for LCY
Because it have a currency code, it will be treated in NAV as foreign instead of Local Currency. The GBP currency will have to be 1:1 to make sure there is no exchange rate. I am not keen on the fact that the GBP Currency Code is not BLANK in transactions as in standard NAV
yes that can become an issue. It is better to check the currency code against LCY code and leave it blank when they are equal. This should be a function in the import interface from the third party app. Also, the LCY coude should not be entered as currency code in the company - there should be a check that this can’t be done.
Why is this an issue:
As you say, NAV always treats amounts with a currency code a s a foreign currency. So, any grouping by currency would contain two totals for your example (one for blank, one for GBP). There can be unwanted restrictions on applying open entries (or you need to open the feature up to mixed currency applications, which can be a PITA in itself).
What is the reason you can not eliminate the problem at this level and conditionally NOT transfer curr.code IF it matches LCY of target system?
You’re correct assuming there will be problems. LCY code must sit ONLY in one place - GL Setup / LCY Code, and by no means in can be included first & foremost in Currency table, that will eliminate all other restricted usage, e.g. in Journals Currency fields and so on.
If you do include LCY, Navision behavior becomes strange and unpredictable, although in the beginning it looks like it works OK.
I have written about this issue several times here, moreover, I have had to repair several (2 in fact) implementations, where the Partner (!!!) had included LCY where it is not allowed to appear.
Thank you Modris. I have not had time to test it myself but I definitely doubt that using the LCY with a currency code is not the correct way.
A new field had been added show the LCY Currency code in the General Ledger Setup. My solution was to check this currency code when transactional data are propagated to the companies. If the currency code is the same as the currency code in the general ledger setup, the currency code in the transaction should be replaced with a blank value.
The technical consultant rejected this solution.This consultant has resigned and his last day is today. I will take this up with the program manager as I strongly agree that the complications will outweigh this decision.