In my previous post, I showed how to perform a month end revaluation in Dynamics NAV with an unpaid invoice. In this post, I’ll show you how to receive cash against a foreign currency receivable.

To recap: We have an open invoice that was worth 15000 MXP when we invoiced and 17250 MXP when we closed the month. The peso continued to fall, and it’s now worth 20000 when we receive the cash on November 20th.

We start by going to Cash Receipt Journals and make a receipt for the full amount, in this case 1150 USD.

We’ll use BO-USD which is our USD bank account. We’ll use account 01454545, which is the bill to account for Spotsmeyer’s Furnishings.

We first create a batch, called CURRTEST.

We add the receipt:

The key fields are:

Posting Date: 11/20/16 (to prove the change in rates)

Document Type: Payment

Document Number: TEST123

Account Type: Customer

Account No.: 01454545

Currency Code: Defaults to USD

Amount: -1150.00 (because of how NAV handled positives and negatives)

Once we have the entry, we click “Apply Entries” (see yellow arrow in above screenshot).

Once applied, our invoice is the first to appear:

We highlight the line and click “Set Applies to ID” (see yellow arrow above).

Once we’re done, we can simply click OK and return to the previous page.

Before we post the entry, let me point out the options box next to the currency code:

This options box allows adjustments to the exchange rate.

So now, let’s post the entry and take a look at what happens.

First, let’s look at Customer Ledger Entries, filtering for 10/01/16..11/30/16:

We see both the invoice and payment. And the amounts—which represent USD—match. Excellent.

Moving right, we see that Amount ($)— which represents the local currency MXP—also match. Also excellent.

But what happened to the gain and loss?

We can drill into Detailed Ledger Entries for the invoice:

We can see that the unrealized gain was reversed. But where is the realized gain? (We expect it to be a full 11500, twice the unrealized gain.)

Let’s look at Detailed Ledger Entries for the payment:

We see here that the payment was valued at 23,000. The offset goes partly to the original invoice and partly to realized gain. This makes sense.

If we look at General Ledger Entries, we can see related information:

For our purposes, we care about G/L 9330, which has the credit we expect for realized gain:

This concludes our series on basic NAV currency transaction processing.

I’m continuing to work on the unrealized gain report as well as issues of consolidation.

Again, please let me know if you have any questions.


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