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How to run General Ledger Foreign Currency Revaluation in D365 Finance & Operations

September 8, 2025

Content

What is General Ledger foreign currency revaluation?
Step-by-step process for GL revaluation in D365FO
Step 1: Specify main accounts for revaluation
Step 2: Run the foreign currency revaluation
Step 3: Understand the posted entries
Step 4: Review voucher transactions
Why does GL revaluation matter?
Conclusion

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The General Ledger (GL) foreign currency revaluation feature in D365FO plays a key role in ensuring accurate financial reporting. When GL accounts hold balances in different currencies, fluctuating exchange rates can quickly affect how those balances appear in financial statements.

This process allows organizations to revalue designated main accounts, update them to the latest exchange rates, and automatically post the necessary foreign currency revaluation accounting entries. In doing so, it reduces risk, improves compliance with international accounting standards, and provides finance teams with reliable, audit-ready records.

In this final part of our foreign currency revaluation series, we’ll walk through how to set up and run the General Ledger revaluation in D365FO, review the resulting entries, and understand their impact.

What is General Ledger foreign currency revaluation?

Foreign currency revaluation in D365 for the General Ledger updates balances for accounts marked for revaluation. By doing so, organizations ensure that foreign currency assets and liabilities are always reported using the most recent exchange rates.

The system automatically generates foreign currency revaluation accounting entries, eliminating manual errors and providing clear audit trails. This enables finance teams to remain compliant with IFRS and GAAP while maintaining accurate financial statements.

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Step-by-step process for GL revaluation in D365FO

Step 1: Specify main accounts for revaluation

Go to General Ledger > Chart of Accounts > Accounts > Main Account.

- Select the relevant main account(s).

- Set the Foreign currency revaluation check box to Yes, so these accounts can be included in the GL revaluation.

Step 2: Run the foreign currency revaluation

Navigate to General Ledger > Periodic Tasks > Foreign Currency Revaluation.

Click on Foreign currency Revaluation.

- Enter details such as:
  - From Date / To Date
  - Date of Rate
  - Main Accounts to Revalue
  - Legal Entity
  - Currencies to Revalue

- Click OK to execute. The system will then post the revaluation.

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Step 3: Understand the posted entries

At this point, the system automatically records unrealized gains or losses.

- If there is an Unrealized Gain:

Description	DR	CR
Relevant Main a/c	xxx
Unrealized Gain/Loss a/c		xxx

- If there is an Unrealized Loss:

Description	DR	CR
Relevant a/c		xxx
Unrealized Gain/Loss a/c	xxx

These postings ensure consistent handling of exchange rate differences, providing a clear foreign currency revaluation example for auditors and finance teams.

Step 4: Review voucher transactions

To verify results, select the relevant FCR execution and click Voucher Transactions.
This allows you to review system-generated entries and confirm how the revaluation affected your GL accounts.

Why does GL revaluation matter?

Compliance and accuracy – Maintains General Ledger balances in alignment with current exchange rates, ensuring financial statements comply with IFRS and GAAP standards.
Risk mitigation – Helps businesses manage exposure to exchange rate fluctuations across multiple accounts and currencies.
Efficiency – Automates calculations and postings, reducing the manual workload at period-end close.
Audit transparency – Produces traceable vouchers for each D365 foreign currency revaluation, supporting stronger audit integrity.

Further reading: Step-by-step guide to Accounts Receivable foreign currency revaluation in D365 F&O

Conclusion

Accurate foreign currency revaluation in the General Ledger is essential for organizations with global operations. By automating this process, D365FO helps finance teams stay compliant with accounting standards, reduce exposure to currency risks, and generate reliable foreign currency revaluation accounting entries that auditors and stakeholders can trust. With this, we conclude our four-part series on foreign currency revaluation in Dynamics 365 Finance & Operations. From AP and AR to Cash & Bank and finally the General Ledger, D365FO provides end-to-end capabilities to manage exchange rate fluctuations with accuracy, transparency, and efficiency. Need expert support in configuring or optimizing foreign currency revaluation in Microsoft Dynamics 365? Get in touch at marketing@confiz.com.

About the author

Muhammad Ammar Ali

Ammar is a Microsoft Dynamics 365 Functional Consultant with a focus on Finance and Manufacturing. He brings hands-on experience in...

Ammar is a Microsoft Dynamics 365 Functional Consultant with a focus on Finance and Manufacturing. He brings hands-on experience in streamlining business processes, driving ERP implementations, and delivering solutions that add measurable value. His expertise lies in aligning system capabilities with operational needs to improve overall business performance.

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