We are in the process of implementing MSD 365. Our reporting currency is Cad$. We encounter an issue in foreign currency translation. Please see the following example:
Based on the above example, the Procurement and Sourcing module in MSD 365 will create an accrual (Dr. Asset/Expense Cr. Accrual) and revalue the asset/expense using the spot rate on June 15, 2019. When the invoice was received and entered into MSD 365 on August 10, 2019, the accrual was reversed and a permanent entry was booked (Dr. Asset/Expense Cr. Trade Payable). The foreign currency issue arises because out of the box functionality in MSD 365 revalue the asset/expense using the date when the invoice is received, i.e.: exchange rate on August 10, 2019. Our view is that this is not aligned with IFRS. We should revalue the asset/expense using the transaction date, i.e.: June 15, 2019 (the date we acquired the asset/received the service) or June 17, 2019 (invoice date).
Does anyone have a similar experience? appreciate if you could share how to address this issue.Thank you,
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