In my last post, I entered a sales invoice in NAV in a foreign currency. The invoice was posted on 10/5 and had a value of 1150 USD or 11,500 MXN (or MXP as Cronus has it, which still irks me).
Now, it’s month end. As the invoice isn’t paid, we need to perform a revaluation (as it’s known in standard accounting parlance). The NAV system uses the terminology “adjust exchange rate.” (For more on revaluation, see my posts on exchange and revaluation and revaluation and translation.)
To start, navigate to Adjust Exchange Rates:
Here are the parameters you need:
Start period: Leave blank (We’re revaluing AR right now, so we’re looking for anything that’s open)
End period: Period end date, in this example 10/31/2016
Posting Description: Anything you want for the entry, here we’re using Test Adjust Exchange Rates
Document Number: Here we’re using Test 1, but you should probably develop a naming convention.
Adjust Customer/Vendor/Bank Accounting: Check
Adjust G/L Accounts for Additional Reporting Currency: Leave unchecked (I’ll discuss this in another series of posts on maintaining an additional currency)
When we run the job, we don’t receive any output. The report runs quickly because there is little data in Cronus.
Let’s see what happened.
We start by going to Customer Ledger Entries. We look for our initial entry by searching on 10/05/16.
And here it is:
We can see Original Amount, Amount and Remaining Amount remain the same. However, Amount ($) and Remaining Amt ($) have changed to reflect the new month end rate, which is 15 to 1 and not 10 to 1.
If we click on Detailed Customer Ledger Entries, we can see the revaluation:
This show the initial posting and the then unrealized gain to Amount ($) (or local currency amount) on 10/31/2016. For reporting, Detailed Customer Ledger Entries is quite useful because we can go back and see what the value should be.
Now, let’s look at General Ledger Entries for the revalue:
We see G/L Account 9310, which is the unrealized gain account for USD. We are crediting the account as we have a gain. G/L Account 2320 is for accounts receivable, which shows a debit indicating the increase in value.
And that, folks, is how you run month end revaluation (a.k.a. adjust exchange rates) in NAV.
However, one key question remains: Can we find out what the entry will be before the adjust exchange rate program is run? So far, I haven’t found a standard report for this. However, in a future post I’ll show you how to build an easy aging report that can calculate the rate.