Learn the two essential steps to ensure accurate foreign currency revaluation in Accounts Payable for multinational vendors using Microsoft Dynamics 365 Finance. Optimize exchange rate updates efficiently and avoid common pitfalls.
Table of Contents
Question
A multinational corporation has multiple vendors across different countries and deals with various currencies. You need to ensure that the value of open transactions in Accounts payable is updated accurately to reflect the current exchange rates. What two actions should you perform? Each correct answer presents part of the solution. Choose two.
A. Disable the automatic currency conversion feature.
B. Manually update the exchange rates for each transaction.
C. Run the foreign currency revaluation process.
D. Set up an additional exchange rate type for Accounts payable foreign currency revaluation.
E. Use the same exchange rate for all transactions regardless of the currency.
Answer
C. Run the foreign currency revaluation process.
D. Set up an additional exchange rate type for Accounts payable foreign currency revaluation.
Explanation
Running the foreign currency revaluation process updates the value of open transactions in Accounts payable based on the current exchange rates. Setting up an additional exchange rate type for Accounts payable foreign currency revaluation allows for customizable electronic invoice document processing and document interchange. Manually updating the exchange rates for each transaction is not efficient and prone to errors. Disabling the automatic currency conversion feature or using the same exchange rate for all transactions regardless of the currency does not accurately reflect the current exchange rates.
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