So far, we have covered the most important aspects of financial management with Dynamics NAV. But the application has a lot more possibilities regarding accounting and financial management. In this chapter, we will briefly explain all the other possibilities, which include the following topics:
- Currencies
- Intercompany postings
- Accounting implications of other areas
- XBRL
- E-services and document management
Different countries use different currencies. The application can post transactions such as invoices or payments in different currencies and translate them into the local currency (LCY) according to the corresponding exchange rate.
Imagine that your local currency is Euro (EUR) and you sell your products or services to the United States of America, where the currency used is Dollar (USD).
You would first assign the USD currency to all those customers who do use this currency. You do so in the Currency Code field found in the Foreign Trade FastTab of the customer card.
Then, you would inform the correct exchange rate by navigating to Departments | Financial Management | Periodic Activities | Currency | Currencies, selecting the appropriate currency, and clicking on Exchange Rate, as shown in the following screenshot:
Now, if you prepare an invoice for this customer, you will see that the USD currency is used. This means that prices and amounts will be in dollars; however, you can always see the conversions to your local currency in all those fields that have the LCY acronym.
In the general ledger, amounts will always be shown on local currency. In other places, such as the posted invoice or the customer ledger entry, amounts will be shown both in local currency and in the used currency.
Currencies are available in the following application areas:
- Customers, vendors, and banks
- All transactions that can be done with a customer, a vendor, or a bank, such as invoices, payments, and so on
- Definition of item sales and purchase prices
- Definition of resources, sales prices, and so on