CA Mukesh Kumar Jha

  Scenario - Foreign exchange accounting entries-currency revaluation in D365 A.    Background The theoretical value, or book value, of open transactions in foreign currencies varies over time because of fluctuations in exchange rates. IAS 21  The Effects of Changes in Foreign Exchange Rates  provides guidance to determine the functional currency of an entity under International Financial Reporting Standards (IFRS).   The standard also prescribes how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements from the entity’s functional currency into its presentation currency. A foreign exchange gain/loss occurs when a company buys and/or sells goods and services in a foreign currency, and that currency fluctuates relative to their home currency. It can create differences in value in the monetary assets and liabilities, which must be recognized periodic...

  A.    Conditional sales taxes setup and transaction in D365 FO: -   1.     Business Requirement Sales taxes are usually reported in the period when the invoice is created. Business wants to report sales tax amount when the invoice is paid. Example- On June 10, you create an invoice of 10,000 plus 2,500 in sales tax. On July 10, you report taxes for June. The 2,500 is not included in the sales tax payment, because the invoice has not been paid. On July 15, the customer pays half of the invoice amount, 5,000, plus 1,250 in sales tax. On August 10, you report taxes for July. The 1,250 is included in the sales tax payment. When the customer settles the invoice with a second payment of 6,250, the remaining sales taxes are reported and paid.   2.      Solution If a sales tax authority allows for sales taxes and base amounts to be reported when the invoice is paid, we can use the conditional sales taxes fun...