FrontAccounting forum — A/R and customer record with foreign currency

Re: A/R and customer record with foreign currency

2016-10-06T13:08:25Z

@Jinkels. I did my test on the latest 2.4.RC1. Pretty sure it has the problem I described above.

Re: A/R and customer record with foreign currency

2016-10-05T20:42:49Z

Oooohhh.... I never followed up after Apmuthu's answer of 2016-09-11.

Sorry about that! I was rushing to get my year reports to the tax dept... and then I had to leave office for a business trip.

I will check the new code and follow up.

@Cambell: Yes, it is a deposit. Sorry for the confusion. The customer made a bank payment, that is why my error.

jlinkels

Re: A/R and customer record with foreign currency

2016-09-24T05:48:26Z

Wiki-ed it.

Re: A/R and customer record with foreign currency

2016-09-24T04:28:45Z

It seems to me that if you use the Sales | Customer Payments method it works correctly. However, if you process a Bank | Deposit, then Sales | Customer Allocation the customer allocation process does not process the foreign currency difference correctly (it gets it backward, and doesn't take the difference between the settled amount and the original invoice amount in AR).

@Jlinkels: Note that you should be doing a Bank Deposit Entry for a customer payment (not a Bank Payment Entry which would be for a supplier). Given your example, I think that's what you mean - and processing the Bank Deposit then Allocation results in this error.

Re: A/R and customer record with foreign currency

2016-09-21T21:34:36Z

I think this error still exists in 2.4.x. I'm running that and have reproduced this error.

Re: A/R and customer record with foreign currency

2016-09-12T03:30:54Z

Please check if the error still persists in the latest FA code so that it can warrant inspection. The URLs listed (amongst others) may have changed the functionality that may have cleared the error.

@joe: is this by design?

Re: A/R and customer record with foreign currency

2016-09-12T00:55:44Z

Hi Apmuthu,

I did not void an allocated currency invoice. (Where did I say that?) And it is not necessarily an error. I think it is by design of FA.

What I explained is that is when I receive a bank payment I can enter the amount in foreign currency to be settled. When The amount in foreign currency is different from the (received amount * exchange rate), then the difference is not booked on Foreign Exchange P/L.

jlinkels

Re: A/R and customer record with foreign currency

2016-09-11T17:32:28Z

On 2014-01-17 there was a fix for it.

Run and Rerun. voiding an allocated currency invoice doesn't clear FX account

http://devel.frontaccounting.com/git/?p=fa-stable.git;a=commit;h=5ea4d80a91017eadba9db43a0f26242c57bc4c9e

http://devel.frontaccounting.com/git/?p=fa-stable.git;a=commit;h=8d564a2cbca92c71738d933813ac4985e15488e4

Try your issue with the latest codebase - v2.3.25+ and see if your error persists.

Re: A/R and customer record with foreign currency

2016-09-09T17:45:28Z

It makes sense to mention that, doesn't it? :\ Sorry.
Versie 2.3.19 Build 04.01.2014

jlinkels

Re: A/R and customer record with foreign currency

2016-09-09T15:36:31Z

Which version / build of FA are you using?

A/R and customer record with foreign currency

2016-09-08T18:24:59Z

This question is related to this post: https://frontaccounting.com/punbb/viewtopic.php?id=2481
However, the mentioned question is related to correctly settling an invoice when the exchange rate is different during invoicing and payment. My problem is not the settling, that is correct.

I have tried to find other (more recent) posts on this subject, but I haven't found them.

The problem is this:
My company currency is USD
I have a customer in EUR
The Foreign Currency Exchange rate is different from the real exchange rate.
(This happens if you use a fixed Exchange rate throughout the year)

Say the EUR-USD exchange rate is 1.1 when I issue the invoice.
I invoice the customer for EUR 800,- = USD 880,-
My G/L Acounts Receivable is debited for USD 880,-

Now I receive the payment. But the exchange rate has changed to 0.987
The costumer deposits EUR 800,-
But I receive only USD 790,-

When I do a "Bank Account Payment Entry" I record this:
Payment received: USD 790,-
Settled A/R amount: EUR 800,-

After all, I want this invoice to be settled in full.
The result is the customer invoice is settled.

However, my Accounts Receivable G/L account is credited for only USD 790,-
Which leaves a balance on Accounts Receivable for USD 90,-

This is awkward, because at the end of the period I see Account Receivable: USD 90,-
When I go and look in the Report "Sales -> Customer and Sales Reports -> Customer Balances"
I see none of my customers has an open balance.
So I can't locate why Accounts Receivable has a positive balance as all customers paid in full.

This is all correct (it is not a bug).
But now I should adjust somehow my Accounts Receivable.
I need to make this entry:
Exchange Rate P&L: USD 90,- Debit
Accounts Receivable: USD 90,- Credit

Now the the Accounts Receivable is zero, which is correct.
And I have a loss on Exchange Rates, which is also correct.
I assumed the EUR to be worth more.

The error (if you want to call it like that) is made while entering the bank payment.
I receive USD 790,- and I settle an invoice of USD880,-
While based on the exchange rate I should have received USD 880,-

Question is There is a difference in the amount used for invoice settlement, and the amount booked on Accounts receivable. Why is this difference not booked automatically on "Exchange Rate P&L account".

jlinkels