Thursday, January 17, 2013

Dynamics GP - AP in foreign currency - Applying non-functional currency payment to non-functional currency invoice

Scenario:
The currencies used are just for example, and could be any currency.
Functional Currency: US
Currency1: UK
Currency2: EURO

Customer's invoice is done in UK. Customer pays in EURO. We want to apply the EURO payment to the UK invoice.

The problem is that when you select the EURO payment in the apply sales documents window, invoices that are of a different currency are not displayed in the apply-to window.


Solution: (Only works in GP 2013. Older versions will not display invoices in currencies different from the payment currency)
Use Euro Relationships
This will allow you to define relationships between non-functional currencies


  1. All users must be out of the system
  2. Grant company access to the respective currencies
  3. Define Euro Relationships
    1. Tools>Setup>System>Euro Relationships
    2. Setup the rates for your currency relationships
  4. Enable Euro Relationships
    1. Tools>Utilities>Company>Enable Euro
    2. You will be prompted to 
      1. Post or remove all batches with trx containing the affected currencies
      2. Post or remove all Bank Deposits for Checkbooks in affected currencies
      3. Post or remove all Bank Deposits without receipts
      4. Reconcile all Bank Statements
    3. After you complete the above tasks, tick the currency to enable, and click process
    4. From this point on, you will be able to create invoices in EURO, Payments in UK, and apply them in the apply screen (you still have to post them first)
      1. When you create the invoices, a new Exchange rate Entry Zoom with triangulation will open to allow you to define a rate for the currency relationships
      2. Any EURO invoices you created BEFORE enabling Euro Relationships will show an amount remaining of $0.00 and you will not be able to apply UK payments to them (even though the relationships are enabled)
      3. The changes will only allow NEW INVOICES AND NEW PAYMENTS to be applied to each other for non-functional to non-functional applications

2 comments:

  1. Does this process applies to AP invoices? I continue to get an error to post all deposit under Bank Reconciliation, I have reconciled and post everything

    ReplyDelete
  2. Honestly, i have not tested it, but it should work the same way.

    ReplyDelete