¶ Introduction
Daily balances refer to the amount of money in a financial account at the end of each day. This could be the balance in a checking account, savings account, investment account, or any other type of financial account. The daily balance is used to calculate the interest earned or charged on an account and is also used to determine the minimum payment due on a credit card or loan account.
The daily balance is important as it provides a snapshot of the financial status of an account at a given point in time and can be used to track the changes in the balance over time. It can also be used to monitor spending and ensure that adequate funds are available to cover transactions.
It's worth noting that the daily balance may differ from the current balance, which is the balance at the moment you check it. The current balance may include transactions that have been processed but not yet posted to the account, while the daily balance only includes transactions that have been fully processed and posted.
In D365FO, inside the Treasury modue, the daily balances function will recalculate the loan and investment balances as of today's date.
¶ Navigation
¶ Daily use
¶ Step 1: View daily balances
For a quick look at daily balances,
- in the navigation pane, go to: Modules > Treasury > Common > Inquiries and reports > Daily balances
The Daily balances list page will be visible, featuring the following columns:
- The Object type will specify whether the balance represents a Loan, Cash investment, or Non-Cash investment.
- The Loan number ID is visible within the Reference field
- Date indicates the day on which the Daily balance was revised
- Daily balance amounts will be displayed in both Transaction currency and Accounting currency
- The Select companies filter allows users to globally view all loans across entities.
- The amount in the Capital balance column displayed on the Daily Balances inquiry corresponds to the Capital balance close amount indicated on the loan statement.
- The amount displayed in the Total outstanding column matches the Total outstanding amount stated on the expanded loan statement. It is the sum of outstanding capital and outstanding interest. The total outstanding amount is displayed in the loan currency, sourced from the Loans list page.
- Capital balance - accounting currency is calculated as the Capital balance adjusted by the latest exchange rate for the accounting currency.
- Total outstanding - accounting currency. This represents the converted loan currency, determined by the latest exchange rate. Thus, it is derived from the Total outstanding amount and the latest exchange rate. It is calculated by multiplying the outstanding amount in loan currency by the latest exchange rate.
- Navigate to: Treasury>Setup>Currency>Currency exchange rates
- In the From currency column, filter on USD
- In the To currency column, find GBP
- Examine the most recent exchange rate between USD and GBP
- Navigate to Treasury>Loans>Loans
- Filter on a specific loan
- In the Action menu, on the Loan tab, under the heading Transactions, click on Generate statement
- For Transaction type, select Actual
- The Expanded statement toggle should be set to Yes
- Find the columns called Capital balance close and Total outstanding
- For the Capital balance close and Total outstanding columns, review the figures on the last line of the Actual loan statement, and compare them with the totals provided in the Daily Balances inquiry
- Compare these amounts with the amounts on the Daily balances enquiry screen
Transactions in a financial system are typically recorded in a transaction currency, which is the currency in which the transaction took place. The reporting currency is the currency in which financial reports are prepared and presented, and the accounting currency is the currency in which a company's financial statements are kept and recorded.
Having the ability to view the daily balance amounts in all three currencies allows for a comprehensive view of the financial information and helps in effective financial management and analysis. The transaction currency provides a clear picture of the financial activity in the currency it took place, while the reporting and accounting currencies help in presenting the financial information in a manner that is easily understood and comparable across different periods and with other companies
¶ Step 2.1: View the currency exchange rate
For this example, the focus will be on the currency exchange rate between USD and GBP.
¶ Step 2.2: Daily balances on a loan
To illustrate a practical example of a loan with a transaction currency of GBP and an accounting currency of USD:
