Dynamics GP to BC: MultiCurrency

Understanding Multicurrency, Exchange rate and Reporting Currency Differences

When moving from Dynamics GP to Business Central, one of the first configuration areas that looks familiar—but works very differently—is Currency Setup.  Both systems support multicurrency transactions, but their design philosophies, data structures, and reporting capabilities are distinct. This post breaks down the setup, exchange rate configuration, and reporting currency handling side-by-side to help GP users clearly see how things translate in Business Central.

Currency Setup

In Dynamics GP, even your local (functional) currency needs to be set up just like any other foreign currency, it is driven by Currency ID.

Click on Accounts to setup the Posting Accounts per Currency ID.

After creating your Currency ID, you'll create your Multicurrency Exchange Table for AVERAGE, BUY, & SELL for each currency.

Why GP has Average, Buy, and Sell Exchange Tables?

In Dynamics GP, multiple exchange rate tables—Average, Buy, and Sell—exist to handle different types of currency transactions. The Average rate is typically used for general business postings, reflecting the mid-market rate. The Buy rate applies when the company purchases foreign currency (such as paying a vendor abroad), while the Sell rate applies when converting foreign receipts into local currency. 

Local Currency vs. Reporting Currency

The Local Currency represents the main currency a company uses for its day-to-day transactions, general ledger balances, and statutory financial reporting. For example, a U.S.-based organization typically uses USD as its local currency for bookkeeping and compliance purposes. The Reporting Currency, on the other hand, serves as a secondary currency used for corporate consolidation or management reporting across multiple entities operating in different currencies. 

...and don't forget to give access

In Customer Card, you can setup the default foreign currency. You can keep it blank if using local currency.

In Sales Transaction Entry Window, you can accept the default currency ID (from Customer Card) or select different currency from the drop down list.

If exchange rate is not available, you add on the fly by clicking Exchange Rate to open the Multicurrency Exchange rate window.

What Is Revaluation in Dynamics GP?

Revaluation in Dynamics GP is the process of updating your foreign currency balances—like customers, vendors, or G/L accounts—to reflect the most current exchange rates. Since rates fluctuate daily, the value of foreign balances in your functional currency (e.g., USD) changes over time.

When you run the Multicurrency Revaluation window (like the one shown above), GP compares the original transaction rate to the current rate and calculates the difference as a currency gain or loss.

For example, if a customer owes you €1,000 and the euro strengthens, that receivable is now worth more in USD. GP records this as an unrealized gain. When the invoice is later settled, GP reverses that unrealized entry and records a realized gain or loss based on the actual rate at payment.

The result ensures your financial statements always reflect up-to-date values in your functional currency, keeping your books accurate and compliant with accounting standards.

Business Central handles multicurrency in a more automated and consistent way compared to Dynamics GP. In GP, you set up currencies, rate types, and revaluation, but each module behaves a little differently and many processes (like unrealized gains/losses or revaluations) need extra steps or SmartList checks. Business Central centralizes the setup under Currencies and Currency Exchange Rates, and the system applies the correct rate at posting time without needing separate rate types. It also posts realized and unrealized gains or losses automatically when you apply entries. GP stores multicurrency amounts in both originating and functional fields, while Business Central keeps a single entry and calculates the additional amounts based on the exchange rate settings. The end result is simpler setup, cleaner posting, and fewer inconsistencies than what you’re used to in GP.

In Business Central, you don’t need to create your local currency as a separate record. The system already assumes your company’s functional currency from the General Ledger Setup. You only enter the currency symbol there, and Business Central treats it as your base currency for all postings. This removes one of the steps you used to handle in Dynamics GP, where you had to set up the functional currency as an actual currency record. In Business Central, you manage only the additional foreign currencies under the Currencies list, which keeps the setup simple and avoids extra configuration.

Business Central lets you set an Additional Reporting Currency (ARC) so you can produce financial statements in a second currency without maintaining separate ledgers. Once you pick the ARC in General Ledger Setup, the system automatically posts every entry in both the local currency and the reporting currency using the exchange rate on the posting date. You don’t run a separate revaluation or adjust anything manually. In Dynamics GP, this is similar to using a Reporting Currency, but GP often requires more setup and more steps to keep the reporting currency accurate, including manual checks and revaluation routines. Business Central keeps the ARC fully synchronized in real time, which makes reporting simpler and cleaner.  Source: Set up an additional reporting currency 

How to setup multicurrency?

In Business Central you setup multicurrency by opening Currencies, adding each foreign currency, and entering the required rounding rules. Then you go to Currency Exchange Rates to enter the daily, weekly, or monthly rates you want the system to use. Business Central applies these rates automatically during posting, so once the currencies and rates are in place, no extra setup is needed.

How to default Currency Code in Customer Card and Bank Account Card?

On the Invoicing FastTab, in the Currency Code field, enter the correct currency for the customer or leave it blank to indicate local currency (LCY).

On the Posting FastTab, in the Currency Code field, enter the correct currency for the bank account or leave it blank to indicate LCY.

Exchange Rates Adjustments

Because exchange rates fluctuate constantly, you need to adjust other currency equivalents periodically. If you don't, amounts you converted from foreign (or other) currencies and posted to the general ledger in local currency can be incorrect.  

 

Error in General Journal: "The field Currency Code of table Gen. Journal Line contains a value that cannot be found in the related table (Currency).

Solution: Remove the local currency in Bank Accounts window.

Summary:

Dynamics GP	Business Central
Functional Currency (is the local currency)	Local Currency (set in General Ledger Setup)
Reporting Currency	Additional Reporting Currency (ARC)
Currency Setup window	Currencies window (for foreign currency)
Rate Types	No Rate Types (single rate per currency/date)
Revaluation	Adjust Exchange Rates
You select which documents to revalue	System revalues all open customer, vendor, and bank entries.
Posts unrealized gains/losses only during revaluation.	Revalues and posts using the latest rate; gains/losses handled automatically
More manual steps and more windows involved	Simpler, single process with fewer steps
Functional currency must be created as a currency record	Local currency is defined in G/L Setup, not as a separate currency

𝐁𝐂 𝐏𝐫𝐨 𝐓𝐢𝐩: 

Don’t overdo it — if your local currency is already set in the General Ledger Setup, skip adding it again in the Currencies page! Leave the Currency Code blank for local transactions — Business Central already knows it’s your LCY. Keep it clean, consistent, and error-free.

Source: Update Currency Exchange Rates