Set up currency conversion to calculate sales prices from cost rates

Applies To: Project Operations Integrated with ERP

In Microsoft Dynamics 365 Project Operations, sales prices for expense categories can be set up as numeric values, or they can be set up so that they're calculated based on the cost that's incurred.

When they're set up to be calculated based on the incurred cost, the following options are available:

• At cost
• Mark up percentage over cost

In scenarios where the expense cost is incurred in a currency that differs from the sales currency for the project contract, currency conversion is required to calculate the sales price based on the cost.

Currency conversion behavior that uses native Dataverse exchange rates

By default, Project Operations uses the currency exchange rates that's stored in the Currency table in Dataverse. To configure Project Operations to use native exchange rates to calculate sales prices from cost, follow these steps.

1. Go to Project Operations > Settings > Parameters.
2. Open the Project Parameter details page.
3. Set the Currency conversion logic field to a blank value.

Currency conversion behavior that uses exchange rates from finance and operations apps

The exchange rates in the Currency table that's natively available in Dataverse aren't date effective. Therefore, they might not always be scaled to the requirements that you have for the calculation of sales prices from cost rates.

You can use exchange rates from the finance and operations environment to calculate the sales price in the sales currency from a cost rate in the cost currency. To configure this currency conversion behavior, follow these steps.

1. On the Project parameters page, add the Currency conversion logic field. Then save and publish the customization.

2. Go to Project Operations > Settings > Parameters.

3. Open the Project Parameter details page.

4. Set the Currency conversion behavior field to Extended with fallback to default.

5. Give the Dual-write app user security role Global Read permission to the following tables:

   • msdyn_currencyexchangerates
   • msdyn_currencyexchangeratepairs
   • msdyn_exchangeratetypes

6. In your finance and operations environment, run the following dual-write maps with initial synchronization:

   • Exchange rate type (msdyn_exchangeratetypes)
   • Exchange rate currency pair (msdyn_currencyexchangeratepairs)
   • CDS Exchange Rates (msdyn_currencyexchangerates)

After these changes are completed, dual-write will make the exchange rates from the finance and operations environment available in Dataverse. Project Operations will then use those exchange rates to convert cost rates into the contract's sales currency.

Note

This currency conversion behavior applies only to the calculation of sales prices from cost rates. It won't be used to generically calculate base currency values. Base currency values will always use native Dataverse exchange rates, regardless of whether you complete this procedure.