Problem with applying payment to invoice with different curr

Soulz

Hi,

I need help on a issue with my payment. What i am trying to do here is to make a transaction in USD and try to apply payment in SGD to the transaction. I have a fixed exchange rate for the whole month but for 1 invoice, i need to change the exchange rate.

Senario:
I have set a default exchange rate eg 1LCY to 0.588USD in my currency table. For this particular general journal line, i have changed the exchange rate to 1LCY to 0.625USD by using the currency code "..." inside the journal line and debit bank and credit vendor in 1000USD. When i check my vendor card balance, it is showing i owe the vendor 1600LCY.

But when i make a payment in LCY, i click on the function --> apply entries, it is showing for "Appln remaining amount" column is 1700LCY while "remaining amount(LCY)" is 1600LCY. After i apply to the invoice and post the payment, i go back to the payment journal --> function --> apply entries, it is showing for this invoice some amounts in "remaining amount(LCY)" and "appln remaining amount". But logically, it should not have any amount left in these 2 columns.

Any advice will be greatly appreciated. Thanks.

Cheers,
Raymond

Kaetchen

Are you doing it through "Cash Receipt Jrnls"?

Soulz

Kaetchen wrote:

Are you doing it through "Cash Receipt Jrnls"?

Nope but through general journal. But it doesnt matter. I have checked with microsoft and their response was to run the adjust exchange rate after this and the remaining amount will post to exchange gain and loss. But through a financial point of view, it doesnt really make sense.

Kaetchen

I have only worked with cash receipt jrnls, maybe it is possible in gen jrnl as well?

In cash receipt jrnls the entry is as follow:


For example Invoice USD 2,000 - exchange rate 1,56 = NZD 3,120

Customer pays USD 2,000 exchange rate 1,58 = NZD 3,160 ie "Realised Profit FCY NZD 40

You enter the amount (USD 2,000) which has been paid in field "Amount" and in field LCY Amount NZD 3,160, apply the invoice and the program will credit customer ledger $3,120 credit Realised Profit $40 and debit bank $3,180.

You can also change the exchange rate in "Currency Code" (see the little three dots) when you move the curser to the field press enter and change the exchange rate to $1,58 and the amount in LCY will be adjusted.

If this doesn't work your currency setup is probably not complete ie no GL Accounts for "Realised Profit" or "Realised Loss".

To use "adjust exchange rate" for this purpose doesn' make any sense indeed. Someone explained it to me. This facility is for calculating "lower price value" in the trial balance accounts receivables and payables.

Just try it and if you have still problems I sent you some hard copies how to setup currencies and to fill out the jrnl.

Maita

Hi,

Have you been able to have a solution for your problem? I'm having the same problem at a client site but it is on the customer ledger entries.

If so can you please send me the solution.

Regards

Maita

ecclectic

Hi,

excuse my very dumb question but have you "set applies to id" after you have clicked on function apply entries?