Dynamics NAV – Financial reports in foreign currency
Microsoft Dynamics NAV (Navision) allows out of the box transactions in foreign currencies for customers, vendors and bank accounts and provides reporting in both local and foreign currency.
Yet, if we want to obtain synthetic financial reports in foreign currency such as Trial Balance, Balance Sheet, Profit and Loss etc., we have to enable a functionality called additional reporting currency. Additional reporting currency makes possible the conversion of general ledger amounts into an additional currency – for Romania most frequently EUR, and then the converted amounts are available for reporting. The exchange rate used for conversion is either the exchange rate on the document, if the document is in foreign currency, or the NBR (National Bank of Romania) exchange rate available for the posting date, if the document is in local currency. The functionality is enabled following the path: Departments -> Administration->Application Setup->Financial Management->Financial ->General Ledger Setup
In ”General Ledger Setup” window, on ”Reporting” tab, a currency code will be selected for the field ”Additional Reporting Currency”. This setup is best to be made before recording any transaction in General Ledger. If there are general ledger entries already posted, the system will convert the amounts to additional reporting currency, but you must be sure that the currency exchange rates table is filled with values for the reporting currency – for the entire accounting period to be converted. After the additional currency code is selected, the amounts in additional reporting currency will be instantly available in general ledger entries (see image bellow).
Additional reporting currency is available now in multiple places:
Chart of Accounts
In Chart of Accounts, one can see the G/L Account balance in the reporting currency.
Account Schedules is a functionality which allows obtaining synthetic financial reports, like Balance Sheet and Profit and Loss Account. Amounts can be displayed also in reporting currency.
Analysis Views using dimensions (cost centers )
Analysis views are tools which enable to analyse business performance using dimensions (information entered by user) which are specific and relevant for the business. For example, we can analyse costs and revenues using dimensions such as departments or geographic regions. Analysis view’s amounts can be displayed also in reporting currency.
Some financial reports in Dynamics NAV include the option to display the amounts in additional reporting currency.
Although not all the standard reports have this option, due to the fact that the amounts in additional reporting currency are available in general ledger entries, it is quite easy to customize or to create a report in order to display these amounts.