1 Topic by linothomas (edited by linothomas 07/01/2013 02:24:49 pm)

  • From: Bangalore,IN
  • Registered: 07/01/2013
  • Posts: 8

Topic: Duplicates entry in Foreign Exchange Gain when modify a customer payme

I modified a customer payment due to a slight exchange rate difference, and noticed there's a duplicate entry as "Foreign Exchange Gain" in the GL


Situation(Example):

1. Customer made an advance payment of US$ 1000.00 on 01/01/2013 and the exchange rate is INR Rs 50.00
2. Invoiced to the customer on 10/01/2013, and the exchange rate is INR Rs 51.00

Now the GL Entries as follows which seems correct!

# Sales 51000.00 CR
#AR 51000.00 DR
#Sales 1000.00 CR
#Foreign Exchange Gain 1000.00 DR

3. Modify the exchange rate for 01/01/2013 to INR Rs 50.50
4. Modify the Customer Payment and save the entry to affect the exchange rate difference. This happens if there's a rate difference between payment and invoice date too(I guess this method which I used is wrong, and correct method may be to do a "Currency Revaluation". But here in my case there's only one entry so far and I feel it as a bug)

Now the entries are as follows;

# Sales 50500.00 CR
#AR 50500.00 DR
#Sales 500.00 CR
#Foreign Exchange Gain 500.00 DR
#Sales 1000.00 CR
#Foreign Exchange Gain 1000.00 DR


Did anybody come across this scenario? Is this a bug or something which I am not aware (I am not an accounting person)

Thanks.,
Lino

  • From: Bangalore,IN
  • Registered: 07/01/2013
  • Posts: 8

Re: Duplicates entry in Foreign Exchange Gain when modify a customer payme

Hi,

Anybody able to reproduce this issue?

Thanks/Lino

  • From: Bangalore,IN
  • Registered: 07/01/2013
  • Posts: 8

Re: Duplicates entry in Foreign Exchange Gain when modify a customer payme

It seems entry in GL under "Foreign Exchange Gain" is not getting voided if we void the customer payment transaction

Thanks/Lino

  • Registered: 12/25/2007
  • Posts: 2,448

Re: Duplicates entry in Foreign Exchange Gain when modify a customer payme

Probably you have 'Automatic currency account revaluation' option set in your company setup. Having this, your currency account balances are revaluated automatically, so you have currency accounts value always up to date.

The GL posting to Foreign Exchange Gain account which is not voided with payment is related to your currency account balance value change (due to exrate change), and not related to the voided payment transaction.
Janusz