Business Central How-To: Working with Currencies

If your company operates in more than one country or region, it’s probably important that you can do business in more than one currency. You define your local currency (LCY) on the General Ledger Setup page. Afterward, your local currency will be represented as a blank currency on documents and transactions. When the Currency field is blank, the currency is LCY.

Once you’ve set your local currency, you must set up currency codes for each currency that you use if you buy or sell in currencies other than your local currency (LCY). Also bank accounts can be created using currencies. It is possible to record G/L transactions in different currencies, however, the G/L transaction will always be posted in the local currency (LCY).

You must set up a code for each currency you use if you:

  • Buy or sell in other currencies besides your local currency (LCY).
  • Record general ledger transactions in both LCY and an additional reporting currency.

After setting up the codes, assign the appropriate code to each foreign currency bank account, and assign a default currency code to foreign customer and vendor accounts.

You specify the currency codes in the Currencies list, including extra information and settings that are necessary for each currency code.

Note: When you post to the general ledger using a foreign currency, Business Central converts the transaction to LCY using the currency exchange rate for the posting date. The G/L entry won’t contain information about which currency was used, only its value in LCY. To keep track of the original currency, use the sales and purchase documents and bank accounts that store currency information for entries.

If you’d like to discuss more about Business Central’s many efficiencies and how to use them, or about making the move across to BC, reach out today to Brookland Solutions for a no obligation discussion. Get in touch!

January 20, 2025

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