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Dynamics 365

How to cancel an exchange adjustment

There can be situations where you need to cancel an exchange adjustment. This could be because the wrong exch.rate was applied or because you in hindsight find out it would lead to reconciliation issues if you did not do the reevaluation from the ‘right’ module.

Here I will show an example of how to cancel an exchange adjustment when you by accident did in General Ledger, but actually needed to do it from Accounts Receivable

These are my exchange rates


I post a freetext invoice on Feb 1st in USD


My Summary account balance in my company currency is 19444.44



I decide now that I want to do an exchange adjustment for my summary account 130100 to update the balance with the rate of March 1st



After the exchange adjustment, my trial balance looks like this


My summary account balance after the reevaluation is 19662.92

However, now I find out that I should actually have made an exchange adjustment from Accounts Receivable(AR) instead.

The problem now is how can I cancel this exchange adjustment so that I can do it from AR instead

The easiest way to do that is to change the exchange rate on March 1st to be equivalent to the one from Feb 1st


90 for March 1st


We can then rerun the exchange adjustment and note that my Trial balance shows that the balance on my summary account is back to 19444.44.


The previous exchange adjustment has been cancelled out and I can update my exchange back to 89 and do the exchange adjustment from Accounts Receivable