Update Currency Exchange Rates

As companies operate in increasingly more countries/regions, it becomes more important that they be able to trade and report financials in more than one currency. You must set up a code for each currency you use if you buy or sell in currencies other than your local currency, have receivables or payables in other currencies, or record G/L transactions in different currencies.

Your general ledger is set up to use your local currency (LCY), but you can set it up to also use another currency with a current exchange rate assigned. By designating a second currency as a so-called additional reporting currency, Business Central will automatically record amounts in both LCY and this additional reporting currency on each G/L entry and other entries, such as VAT entries. For more information, see Set Up an Additional Reporting Currency.

Adjusting Exchange Rates

Because exchange rates fluctuate constantly, additional currency equivalents in your system must be adjusted periodically. If these adjustments are not done, amounts that have been converted from foreign (or additional) currencies and posted to the general ledger in LCY may be misleading. In addition, daily entries posted before a daily exchange rate is entered into the program must be updated after the daily exchange rate information is entered. The Adjust Exchange Rates batch job is used to adjust the exchange rates of posted customer, vendor and bank account entries. It can also update additional reporting currency amounts on G/L entries.

To set up a currency exchange rate service

You can use an external service to keep your currency exchange rates up to date, such as FloatRates.

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Currency Exchange Rate Services, and then choose the related link.
  2. Choose the New action.
  3. On the Currency Exchange Rate Service page, fill in the fields as necessary. Hover over a field to read a short description.
  4. Choose the Enabled check box to enable the service.

To update currency exchange rates through a service

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Currencies, and then choose the related link.
  2. Choose the Update Exchange Rates action.

The value in the Exchange Rate field on the Currencies page is updated with the latest currency exchange rate.

See Also

Set Up an Additional Reporting Currency
Closing Years and Periods
Working with Business Central