New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2: Enable Use Of Other Currencies – Czechia

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 14th of the new functionality in the Country and regional section is enable use of other currencies – Czechia.

Recent Czech legislation allows Czech companies to determine a functional currency and record their accounting in a currency other than Czech. It’s now possible to use a foreign currency for corporate accounting and to use the Additional Currency Reporting functionality for other records and reports that must be in Czech currency.

Enabled for: Users, automatically
Public Preview: –
General Availability: Oct 2024

Feature Details

The new amendment to Act No. 563/1991 Coll., on Accounting, effective from January 1, 2024, introduces the concept of functional currency as the currency of accounting. Functional currency means the currency of the primary economic environment in which the entity operates and may be other than the Czech currency. The functional currency of an entity can be determined on the basis of the criteria for determining the functional currency under IFRS as governed by European Union law.

If the company decides to implement accounting in a foreign currency, then for other records and reports that must be in Czech currency, it uses the Additional Reporting Currencies functionality for reporting. However, this only deals with the creation of material items and VAT items, but not with subsequent reporting. All VAT reporting must be done in Czech currency (CZK), so the reporting functionalities have been adapted as follows:

• Preview of the VAT statement
• VAT control report
• VAT control report statistics
• VIES Declaration
• Export of the VAT statement
• Export of VAT control report
• Export of the VIES Declaration
• Printing the VAT statement (Report 11769)
• Printing of the Recording Obligation (Basis for VAT) and List of Tax Documents (Report 11756)
• Test report of the VAT Control Report (Report 31103)
• Test report of the VIES Declaration (Report 31064)

New VAT rate to additional reporting currency (Document Currency/Additional Reporting Currency) fields have been added to the purchase and sales documents to allow the currency rate to be adjusted if necessary. Similar functionality has been added to purchase and sales advances. The printing of document reports has also been modified.