Today's #TipTuesday post is a small tip, something to watch for if any GL Accounts in Dynamics GP are revaluing month after month despite having a zero balance in the company's functional currency.
Nearly 20 years ago, I worked for a company that did a lot of transactions in multi-currency and we revalued our A/R and A/P control accounts each month, among others. From time to time, we would see revaluation occurring on a GL Account where the balance was zero. Or, not zero, but the "balance" it was revaluing was nothing close to the underlying real balance in that currency.
Multicurrency Summary Inquiry window
Here's what I used to look at with an example of an issue that would cause this problem. The highlighted section is where I used to look if this happened. Here I have an A/R account for CAD receivables only. In my case, we used to have separate control accounts so it was easier to track these kinds of issues.
The balance in this account should be 100% Canadian dollars, in this case; there should be no functional currency entries at all. The balance in this account is zero from a functional standpoint, however, there is a CAD balance and there is an amount in USD (Fabrikam's functional currency). I never want to see this in this situation.
What happened? Something was entered in USD instead of CAD. Perhaps it was a credit note applied and the user mistakenly entered it in functional currency by mistake. It isn't likely a cash receipt unless for some reason the customer pays in USD! Whatever the reason, I would look at what the functional entry was, reverse it and re-enter the transaction in CAD so that both the functional and originating currency balances were zero (in this example).
