Introduction
One of the first and most important steps of implementing Dynamics 365 Finance is currency setup. Currency setup is a required step in the configuration of the system and is used to record financial transactions. This module explains currency management in Finance.
In this module, you will learn about:
- Different types of currencies in Finance.
- The concept of triangulation currency.
- How to set up legal entity currencies and conversions.
- Configuration of exchange rate providers.
- How to import exchange rates from providers.
There are two types of currencies in Finance.
The main currency that a company uses is called the accounting currency. Often, a company must report recorded financial transactions based on a different currency, which is known as the reporting currency.
All companies have a base reporting currency, and in some companies that is the only currency needed.
Multicurrency functionality may be used if your company does business in more than one currency. If your organization has multiple legal entities and transacts in multiple currencies, then maintaining currencies and their corresponding exchange rates is essential.
Specify exchange rate types let you set up the currency exchange rates. When you have determined the accounting and reporting currencies, then you define currency exchange rates between two currencies or a currency pair.
In the next unit you will learn how to set up currencies and currency conversions for a newly created legal entity.