Payment to supplier with different currency

NaviDev

Hi,

Our client have a scenario. They have local currency as Singaporean dollar, they have suppliers with different currency. Our client purchase to the a supplier in US dollar (the invoice is in US dollar). When they pay the supplier they are using Sing dollar or they will print a check in Sing dollar. How can I do this scenario in navision?

Many Thank you in advance.

AdamRoue

You can alter the payment currency on the payment journal, not an issue, just make sure you alter the amount, if the currency is US Dollars it will suggest $10000, if you then set the currency to Singapore Dollars it will still leave the payment amount as 10,000 but the Amount (LCY) would then read 14,324. So you would be paying them 10,000 Singapore Dollars when they want 10,000 US Dollars, so you will not fully settle the invoice, or over pay it. You need to carefully handle this, but it is not an issue.

NaviDev

AdamRoue wrote:

You can alter the payment currency on the payment journal, not an issue, just make sure you alter the amount, if the currency is US Dollars it will suggest $10000, if you then set the currency to Singapore Dollars it will still leave the payment amount as 10,000 but the Amount (LCY) would then read 14,324. So you would be paying them 10,000 Singapore Dollars when they want 10,000 US Dollars, so you will not fully settle the invoice, or over pay it. You need to carefully handle this, but it is not an issue.

Thanks for the reply AdamRoue.

How payment about using a bank account that has empty currency code (means local currency is in Singaporean dollar)? I need to print the cheque... But upon printing the cheque it gives me this error "The Bank Account and the General Journal Line must have the same currency." I commented this error, and the report continues printing. The value posted in the cheque ledger entry in incorrect. Assuming that I already fixed the posting of the cheque and tried to post the payment transaction, it then gives me error that I have found is in the CU 12. Here is the code :

IF BankAcc."Currency Code" <> "Currency Code" THEN
      FIELDERROR(
        "Bank Payment Type",
        STRSUBSTNO(
          Text004,
          FIELDCAPTION("Currency Code"),TABLECAPTION,BankAcc.TABLECAPTION));

Would it be fine if I do comment this code?

I tested to comment the codes and post the transaction. And the posting is successfull. I have browse the GL posted entries and they were correct except for the entries in the cheque ledger which I have mention earlier. But again my question is, is it fine to comment that code in the CU 12?

AdamRoue

Well I will obviously say no to commenting out the code, I will leave that to the developers.

I presume you are testing this rather than in live? :shock:

Your issue is the bank payment type, this will be set to computer cheque, you can get past the first message by setting this to manual, but you still cannot post it due to the same issue, not sure why something to do with the cheque ledger entries I suppose. Therefore from what you have described to print a cheque as I see it you need to the set the bank payment type to blank and then print and post the cheque, the downside is you do not get a cheque ledger entry. What Navision is insisting on here is a bank account in the currency you are paying the cheque in, so if you had a US Dollar and Singapore Dollar bank accounts you can alter the balancing account and post the cheque from the correct bank account without issue.

I would post a separate posting regarding commenting the code out if you want to go down this route so developers will look at it, they might not read this after it has had replies.

NaviDev

AdamRoue wrote:

Well I will obviously say no to commenting out the code, I will leave that to the developers.

I presume you are testing this rather than in live? :shock:

Your issue is the bank payment type, this will be set to computer cheque, you can get past the first message by setting this to manual, but you still cannot post it due to the same issue, not sure why something to do with the cheque ledger entries I suppose. Therefore from what you have described to print a cheque as I see it you need to the set the bank payment type to blank and then print and post the cheque, the downside is you do not get a cheque ledger entry. What Navision is insisting on here is a bank account in the currency you are paying the cheque in, so if you had a US Dollar and Singapore Dollar bank accounts you can alter the balancing account and post the cheque from the correct bank account without issue.

I would post a separate posting regarding commenting the code out if you want to go down this route so developers will look at it, they might not read this after it has had replies.

Thanks a lot for that input AdamRoue.

But when I set the Bank Payment Type to blank the report of the check does not show anything, I mean no output at all. But yes I can post the Payment without printing the check, and that is one of my problem how can I print the check? Another problem is, the client does only have singaporean bank that is why they are insisting to pay the supplier with sing dollar.

AdamRoue

Yep without the payment type being a cheque you cannot print a cheque, so we are in a catch 22 scenario

Why not set the vendor as a singapore vendor and change the currency on each order, you can then print the cheques normally. This is a bit of a pain, but it would work.

Other than this you need to develop around standard Navision which goes back to posting the code change for the developers to read.

NaviDev

AdamRoue wrote:

Yep without the payment type being a cheque you cannot print a cheque, so we are in a catch 22 scenario

Why not set the vendor as a singapore vendor and change the currency on each order, you can then print the cheques normally. This is a bit of a pain, but it would work.

Other than this you need to develop around standard Navision which goes back to posting the code change for the developers to read.

Again I really thank you for your inputs.

I did what exactly what you have said. To setup the vendor to have singaporean currency. Use it with a invoice but alter the currency code as US dollar. I successfully posted the transaction. I created a payment for that vendor and invoice, I have use the sing bank, and alter the currency code of the payment line to sing dollar. Change the amount equivalent to the sing amount. I have successfully printed the cheque, but with inconsistent amount of WHT. I tried to post the transaction but gives me an error "Currency Code should be same for Payment and Invoice", I know this error comes form a localization modification for WHT. and I cannot post the transaction. Do my step are correct? or am I missing something?

AdamRoue

NaviDev wrote:

AdamRoue wrote:

Yep without the payment type being a cheque you cannot print a cheque, so we are in a catch 22 scenario

Why not set the vendor as a singapore vendor and change the currency on each order, you can then print the cheques normally. This is a bit of a pain, but it would work.

Other than this you need to develop around standard Navision which goes back to posting the code change for the developers to read.

Again I really thank you for your inputs.

I did what exactly what you have said. To setup the vendor to have singaporean currency. Use it with a invoice but alter the currency code as US dollar. I successfully posted the transaction. I created a payment for that vendor and invoice, I have use the sing bank, and alter the currency code of the payment line to sing dollar. Change the amount equivalent to the sing amount. I have successfully printed the cheque, but with inconsistent amount of WHT. I tried to post the transaction but gives me an error "Currency Code should be same for Payment and Invoice", I know this error comes form a localization modification for WHT. and I cannot post the transaction. Do my step are correct? or am I missing something?

Sorry I think we may have double backed here.

Originally the payment was in US Dollars and you were changing it to Singapore Dollars. Now you are changing the payment from Singapore Dollars to US Dollars.

What I was trying to achieve was the vendor being the same currency as the payment and the bank, therefore when the invoice is processed you will change the currency, and when the payment is generated it will suggest the currency of the invoice, however when you alter it you are altering the currency to the default currency of the vendor and the currency of the bank, in this way you can print your cheque in your home currency and post the journal without issue

NaviDev

Yup I think that is actually I am doing. Here is the step by step I re-created.

1. In the General Ledger Setup I define the local currency as sing dollar.
2. Setup the currency exchange rates for US dollar (lets say 1SD = 3USD).
3. I created a vendor but leave the currency code as empty (it will use the local currency isnt it?).
4. Created a invoice for the vendor. Fill the field currency code field with USD. Created the line for the amount 100, and posted the transaction.
5. Created the payment. (Upon validating vendor no. the currency field is still empty.)
6.Select the invoice in Applies to doc ID field (then it populates payment line currency code to USD, and amount to 100)
7. I have change the currency code to empty (so that it will use the local currency). but then the amount is still 100.
8. Change the amount to 300.
9. Selected a bank with empty currency code.
10. Printed the check.
11. Post the transaction and got the error.

Am I in the right track?

AdamRoue

What is your Application Between Currencies Flag set to in the P&P setup? If it is not all set it to all and try to post again

NaviDev

Yes it is setup to all.

NaviDev

Thanks you so much for the idea you have given me Adamroue. I have taken some time to review this issue and come out that navision has this limitation. Maybe I will just discuss this faithfuly with the client.