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Hi Team,
Greetings!!!
We have following three options in "Fix. Exchange Rate Amount" but the purpose of each option is not explained. Will you please update me the purpose and financial impact of each option.
Thanks.
Best Regards,
Sheikh Muhammad Jawad
This question is related to the following Learning Module
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Thank you for reaching out to Microsoft Q & A forum.
It appears you're discussing three options within a feature named "Fix Exchange Rate Amount".
1.Adjust Exchange Rate Amounts for Transactions:
Purpose: This option likely enables users to manually adjust exchange rates for specific transactions.
Financial Impact: Users can rectify inaccuracies in exchange rates applied to transactions, ensuring precise financial reporting. Adjustments may lead to changes in unrealized gains or losses, affecting financial statements accordingly.
2.Revalue Open Balances Using Updated Exchange Rates:
Purpose: This option allows the system to automatically revalue open balances based on updated exchange rates.
Financial Impact: By revaluing open balances, the system reflects the most current exchange rates, potentially modifying the value of outstanding receivables, payables, and other balance sheet items. This can impact financial ratios, equity, and the overall financial position.
3.Generate Exchange Rate Adjustment Register:
Purpose: This option generates a register detailing all adjustments made to exchange rates.
Financial Impact: It provides transparency into the adjustments made, aiding in financial reconciliation and audit trails. The register helps stakeholders comprehend the impact of exchange rate fluctuations on financial statements and ensures compliance with accounting standards.
NOTE: Each option serves a distinct purpose in managing exchange rate-related activities within the system, contributing to accurate financial reporting and analysis.
Please feel free to contact us if you have any additional questions.
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Hi @SiddeshTN
Greetings!!!
Thanks for your valuable insights. But please look at the attached screenshot. I have highlighted three options of "Fix. Exchange Rate Amount", which are:
Thanks & Regards,
Sheikh Muhammad Jawad
Thanks for providing the additional context. It seems like the options "Currency," "Relational Currency," and "Both" are related to adjusting exchange rate amounts.
Let's break down each option and its potential purpose:
1.Currency:
This option specifies that the adjustment should be applied solely to the chosen currency. It implies that the exchange rate amount will be corrected exclusively for that currency.
Purpose: Targeting and rectifying any errors in the exchange rate for the selected currency.
Financial Impact: This option may impact accounts, transactions, or balances denominated in the selected currency, ensuring accurate reflection of the exchange rate for those transactions.
2.Relational Currency:
This option suggests applying the adjustment to the relationship between the chosen currency and another currency (likely the functional currency).
Purpose: Ensuring accuracy in the exchange rate between the chosen currency and the relational currency.
Financial Impact: Adjusting the exchange rate in relation to another currency can affect financial statements, especially those involving conversions between the selected currency and the relational currency, ensuring consistency and accuracy in currency conversions.
3.Both:
This option indicates applying the adjustment to both the selected currency and its relationship with the relational currency.
Purpose: Addressing any errors comprehensively in both the exchange rate of the chosen currency and its relationship with the relational currency.
Financial Impact: This option has a broad impact, addressing both the specific exchange rate for the selected currency and its implications on conversions with the relational currency. It ensures accuracy and consistency across various currency-related transactions and balances.
Additional information: These options offer flexibility in addressing exchange rate issues, enabling users to focus on specific currencies or their relationships with other currencies based on the encountered error.
Please feel free to contact us if you have any additional questions.
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Thank you.
**Hi @SiddeshTN
Greetings!!!**
I got my answers.
Thanks for sharing the valuable insights.
Regards,
Sheikh Muhammad Jawad
Please consider clicking the "Accept Answer/Upvote" button now that your issue has been resolved. Your action will benefit other members of the Microsoft Q&A forum community.
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