Trade abroad with multi currency and revaluation in Business Central

How Business Central multi currency works

The general ledger uses one local currency, shown in the system as LCY. You define every other currency on the Currencies page. Each has its own accounts for realized and unrealized gains and losses. Exchange rates carry a date. So a document picks up the rate valid on its posting date.

Customers, vendors and bank accounts each carry a default currency code. You can still raise a document in a different one when a deal needs it. Each posting records the foreign amount and the local amount together. So ledgers can be read in either.

When a company needs currency setup

The need for Business Central multi currency arrives with the first overseas supplier. Or it comes with the first customer who wants a bill in euros or Canadian dollars. Until then, a company often records foreign invoices in local currency at a guessed rate. That hides the real gain or loss. It also makes vendor statements impossible to reconcile.

It also comes up when you open a foreign currency bank account or add a subsidiary abroad. A lender or parent may ask for statements in another currency. The additional reporting currency handles that last case. It records each G/L entry in a second currency next to the local one.

How we configure Business Central multi currency

We list the currencies you trade in. Then we agree the gain and loss accounts with your controller. That includes whether you want realized and unrealized differences reported apart. Next, we connect an exchange rate service. Rates then arrive on a schedule through the job queue, so nobody types them in.

Application rules come next. Sales and purchase setup controls whether a payment in one currency may be applied to an invoice in another. It also sets how rounding differences post. We test a full cycle in a sandbox. That means an invoice, a part payment at a new rate, a revaluation and a final settlement.

A revaluation routine your team can run

At each period end, the Adjust Exchange Rates job revalues open customer, vendor and bank balances at the closing rate. It posts the unrealized difference. Current versions let you preview the posting before you commit it. We write the steps down. That includes which rate to enter and how to confirm the result against the aged reports.

You also receive document layouts that show the currency clearly. Bank reconciliation works for foreign accounts. Financial reports separate exchange differences from trading results. If the additional reporting currency is on, we explain its own adjustment job and when it needs to run.

Pitfalls in Business Central multi currency setup

The error that costs most is changing a customer or vendor currency after entries exist. Another is creating duplicate cards to work around it. So plan the currency per partner before opening balances load. Missing rates are the next problem for many teams. A document posted on a date with no rate silently uses the last one available.

We also see the adjustment run skipped for several periods. That leaves receivables and payables at stale values and produces a large catch-up entry. Finally, switching on the additional reporting currency without a clear reason adds work at every close. We suggest it only when you truly need a second reporting basis.

Business Central multi currency questions

Is Business Central multi currency included in the standard license?

Yes. Handling of foreign currencies is a standard part of Business Central. It is available with both Essentials and Premium. No add-on is needed for invoicing, paying and revaluing in other currencies. The exchange rate service you connect may have its own terms. We check those terms with you before we switch the service on.

Where do the exchange rates come from?

You can type rates into the exchange rates page. Or you can pull them from an external provider through the currency exchange rate services feature. We normally set up a service and schedule it. Then we agree who checks the imported rates before period-end work begins. That keeps a bad rate from reaching your ledgers.

What is the difference between realized and unrealized gains?

An unrealized gain or loss is the change in value of an open invoice at a new rate. A realized one is the final difference when the invoice is paid. Business Central posts each to its own account. So your reports show which differences are settled and which could still move before payment.

Can one customer be invoiced in more than one currency?

Yes. The customer card holds a default currency, and you can change the currency on an individual document. The customer ledger then shows entries in each currency. A setting decides whether payments may cross currencies. We agree that setting with you. It depends on how your customers pay and how your bank reports receipts.

Do we need the additional reporting currency for Business Central multi currency?

Only if you must produce general ledger reports in a second currency. A foreign parent is a common reason. It records every G/L entry in both currencies and needs its own adjustment at period end. Many companies that simply trade abroad do not need it. We help you decide before you switch it on, because it is hard to remove.

Related finance services

Business Central multi currency touches bank accounts, group reporting and everyday ledgers. These pages cover the neighboring areas we usually set up in the same project as foreign currency. Read them next if your Business Central multi currency plan includes foreign bank accounts, subsidiaries abroad or consolidated statements, so each piece lines up with the others. For the product detail, see Set up currencies in Business Central on Microsoft Learn.