As mentioned in the announcement for Management Reporter Feature Pack 1, currency translation support has been added to Management Reporter. The currency translation feature works in conjunction with the currency enhancements added in Microsoft Dynamics GP 2010 SP1, giving customers the ability to create financial statements in a specific reporting currency.
However, before discussing the new currency translation feature, I would like to give a brief overview of existing currency functionality.
In Management Reporter there are two currency related fields that can be selected in the column definition: Currency Source and Currency Filter
Currency Source- This specifies the type of currency (Natural, Functional, or Reporting) that the transactions will be displayed in.
Currency Filter- When selecting a currency filter, only transactions entered in the selected currency will be displayed in the report.
So for example, the user chooses the following:
Currency Source: Functional (US Dollars)
Currency Filter: Canadian Dollars
Results: The column will print only transactions that were entered in Canadian Dollars, but will display those transactions in the Functional Currency (US Dollars).
As I noted above, with Management Reporter FP1, there is the option of selecting a reporting currency within the Currency Source. This functionality is sometimes referred to currency translation, which is the ability to report general ledger amounts in a currency that may not be the functional currency of the company and it may not be the currency the transaction was entered in.
Within Dynamics GP, multiple reporting currencies can be setup. Therefore, when the user selects the Currency Source, they will see 1 to many reporting currencies, depending upon the Dynamics GP Multi-currency setup. This allows for users to report on transactions, in a currency other than the one it was entered in.
For example, if the company’s functional currency is U.S. Dollar and all transactions were entered in US dollars, but the user simply wants to report those amounts in Japanese Yen, the user would select the Japanese YEN reporting currency. This would translate all functional currencies to YEN.
Also, the Currency Filter will work in conjunction with the Reporting Currency.
For example, the company may want to see all the transactions that were entered in Euro for the company, but would like to see these reported in Japanese YEN (even though the Functional is US dollars). The user would simply select the Japanese YEN Reporting Currency in the Currency Source (this tells Management Reporter to display the amounts in YEN) and then select the Euro in the Currency Filter (this limits the transactions displayed to only transactions entered in the Euro currency).
You might be asking yourself, how do I get started? First you will need Management Reporter FP1. Then you will need to:
Click this link to find information on how to perform the necessary currency setup in Dynamics GP to utilize the currency translation in Management Reporter. NOTE: This link will bring you to the ‘Service Pack, Hotfix, and Compliance Update Patch Releases for Microsoft Dynamics GP 2010’ page. Scroll down to the ‘Current Release Downloads’ section. In the NOTES section, select the hyperlink in bullet number three.
For information on Currency Translation in AX and SL, look for a future blog post.
How does it handle Average, Spot and Historical?
The translation type (Average, Spot and Historical) is defined at the account level. Management Reporter makes a call back to GP, and looks at each account in the report, determines the translation type, and grabs the appropriate rate based on the accounts translation type.
Hi Shiela - how does the translation work when a range of periods is provided in the column format?
e.g. Converting from Euro to USD. Period Covered = 1:BASE, and assume base period is April. The Accounts in GP are setup as Average, and i store daily rates in GP (EUR-USD)). Does MR get ONE average rate for the 4 months, and use that for the translation?
How does it work with Dynamics AX?
I follwed the steps described above but could not manage to generate a report in another currency than the ones used for posting purposes.
Hope you can help.
The blog posting above pertains to Dynamics GP. We will be following up with a posting on Dynamics AX. However, with Dynamics AX we simply pull in the reporting currency amounts stored in the GL tables.
The Average rate is per month, and then those monthly amounts are summed together.
this very nice and good quality based blog
Hi Shiela --
Can you please advise regarding reporting in foreign currencies for Dynamics SL 2011?
Is the Currency Filter field indicated optional or required?
Do you have a similar posting for Dynamix AX 2009? I would like to know how the GL tables are updated in AX so as to provide a translated report using Month End rate for Balance Sheet and Average for P&L.
Steve - Currency Filter is not required.
David and Susie - We will be following up the posts regarding currency translation for Dynamics AX and Dynamics SL. Stay tuned.
Any more details on how AX 2009 and MR currency translation will work?
This blog post has more info on currency translation for AX customers: blogs.msdn.com/.../creating-consolidated-financial-statements-using-management-reporter-consolidating-with-multiple-dynamics-ax-2009-instances-aos-and-or-if-currency-translation-and-eliminations-are-required-part-4-of-7.aspx
The hyperlink that you refer to in the Notes section for bullet three has been removed from the page that you are referencing. Can you please provide an updated link?
Joe -- can you be more specific on which link you need? Thanks