MB-310: Microsoft Dynamics 365 Financial Consultant

Change Record

VersionDateChange
1.013 Sep 2024Initial release

Objective

Lab 1 Bank foreign currency revaluation

As part of a period end, accounting conventions require bank account balances in foreign currencies to be revalued by using different exchange rate types (current, historical, average, and so on). With the bank foreign currency revaluation feature, you can revalue one or more bank accounts. Because it’s a global feature, you can revalue banks across all legal entities you have access to from a single page.

Use the USMF company for the exercises in this lab.

Exercise 1 Create a transaction that can be revalued

During this lab, you will first enter a transaction in a bank journal that can be revalued. The second step is to prepare foreign currency revaluation. After you configure the foreign currency revaluation, you run the process and then review the results.

Scenario

Contoso, Ltd. has a new financial controller who plans to run a foreign currency revaluation of bank account USMF EUR as part of the period end. To test the process, the financial controller first creates a general journal with a transaction that can be revalued.

  1. In the USMF company, navigate to General Ledger > Journal entries > General journals.

  2. Select the New button to create a new journal. General journals page with New highlighted and three unposted journals displayed.

  3. Select GenJrn in the Name field. General journals page with GenJrn selected in the Names list

  4. Select the Lines button in the Action Pane. General journals page with GenJrn selected and the Lines button selected

  5. In the Date field, enter 7/1/2024.

  6. In the Account field, select 600155 for the MainAccount, 001 for the BusinessUnit, and 022 for the Department.

  7. In the Debit field, enter 1,000.00.

  8. In the Offset account type field, select Bank.

  9. In the Offset account field, select USMF EUR. Journal voucher page with the GenJrn voucher journal line displayed

  10. In the Currency field, select EUR. Journal voucher page with EUR selected in the Currency field

  11. Select Post in the Action Pane to post the journal. Journal voucher page with Post highlighted in the Action Pane

  12. Close the form.

Information: Prepare the foreign currency revaluation

Note: This is for informational purposes only; the configuration is already done in USMF.

  1. In the USMF company, navigate to General Ledger > Ledger setup > Ledger, and then expand the Currency tab.

  2. In the Accounting currency exchange rate type field, display the Default value.

  3. Select Accounts for currency revaluation.

  4. Review the values for realized gain, realized loss, unrealized gain, and unrealized loss accounts for the currency revaluation. Ledger page with Accounts for currency revaluation area displayed.

  5. Navigate to Cash and Bank management > Setup > Cash and bank management parameters.

  6. Select the Number sequence tab.

  7. Review the number sequence for Foreign currency revaluation. Cash and bank management parameters page with Bank_290 entered in the Number sequence column for Foreign currency revaluation

Exercise 2 Update currency exchange rate

  1. Navigate to General ledger > Currencies > Currency exchange rates.

  2. In the Exchange rate type list, select Default.

  3. Select the line with USD in the From currency field and EUR in the To currency.

  4. Select Add to enter a new exchange rate. Currency exchange rates page with EUR selected for the To currency type.

  5. In the Start date field, enter 7/15/2024.

  6. In the Exchange rate field, enter 91.8000. Currency exchange rates page with the Start date, Exchange rate, and Exchange value fields highlighted

  7. Select Save in the Action Pane.

  8. Close the form.

Exercise 3 Execute the foreign currency revaluation

  1. Navigate to General Ledger > Currencies > Foreign currency revaluation.

  2. Select the Foreign currency revaluation button in the Action Pane. Foreign currency revaluation page with the Foreign currency revaluation button selected

  3. In the From date field, enter 7/1/2024.

  4. In the To date field, enter 7/31/2024.

  5. In the Date of rate field, enter 7/21/2024.

  6. In the Currencies to revalue list, select EUR.

  7. Switch Preview before posting to Yes.

  8. Select Filter. Foreign currency revaluation pane with Filter highlighted.

  9. In the Criteria field, select the Main account 110130. Filtered Inquiry information with the Range tab displayed. The criteria 110130 is entered for Main account.

  10. Select OK and OK.

    The message “Operation completed” appears in the message bar. Foreign currency revaluation preview displaying Operation completed in the message bar.

Calculation

Date Currency EUR-100USD Currency 1 EUR – USD Currency 1,000 EUR - USD
12/1/2013 73 EUR = 100 USD 1 EUR = (1 / 0.73) 1.36986 USD 1000 EUR = (1000 * 1.36986) = 1,369.86 USD
7/15/2024 91.80 EUR = 100 USD 1 EUR = (1 / 0.9180) 1.08932 USD 1000 EUR = (1000 * 1.08932) = 1.089,32 USD
Today’s date   Exchange rate gain Revalued amount = 1,089.32 USD – 1,369.86 USD = 280.54 USD
  1. Post the journal. Foreign currency revaluation preview page displaying the posted journal.

Exercise 4 Review the voucher and balance of the foreign currency bank account

  1. Select the Voucher transactions button in the Action Pane. Foreign currency revaluation page with the Voucher transactions button highlighted.

  2. Review the voucher transactions. Voucher transactions page with four posted voucher transactions

The currency EUR has decreased, which is an exchange rate gain for USMF.

  1. Navigate to General ledger > Inquiries and reports > Trial balance.

  2. In the From date field, enter 1/1/2024.

  3. In the To date field, enter 12/31/2024.

  4. Select Calculate balances. Trial balance page with the From date and To date fields and the Calculate balances button highlighted.

  5. View the balance of main account 110310. Trial balance page with the balance information for main account 110310 displayed.

  6. Close the form.