difference between Appln. Rouding precision , Payment toler

ameen · 2009-08-14

Hi,

Could any expert tell what is the difference between Appln. Rouding precision , Payment tolerance amount.

it could be better if u provide a practical example to understand easily.

Please let me know.

kapil4dynamics · 2009-08-14

ameen wrote:

Hi, Could any expert tell [/b]

This won't get u spoon feeding. :thumbsdown:

Create a invoice for $100 set payment tolerance as 10 % or $10 now while receiving the payment change the amount to 90, after doing so ur invoice will be closed. This is payment tolerance. Means financially short closing the invoices.

As far as application rounding precision is concerned, what have u tried and what is not clear ? Can u come with that please.

ameen · 2009-08-14

Thanks kapil,

i passed some transaction based on the Appln. Rounding precision .

From help about Appln. Rounding precision :

If, for example, an entry in LCY is applied to an entry inUSD and an application rounding precision of 10 is specified for LCY, then the program will accept a difference of LCY 10 or less, and the program will completely close the entries involved in the application.

If it is not 10 then system should not close that entry.

For this My example:

In General Ledger setup - Apply .rounding precision = 10( LCY) except this setup I did not setup anything.

I created a Purchase Invoice with the currency LCY
Purchase Invoice Amount 500 LCY on 02/02/02
Now I am paying this amount on 03/03/03 in USD
In Payment Journal I select the vendor and in amount field = 10 and currency code = USD and in the Relational exchange rate field 1$ = 48
That means Local currency amount = 10 * 48 = 480

I posted that Payment Journal.

When go to Vendor ledger entries then system should not close that entry. But that entry is closed.

What is the problem , please share your experience.

kapil4dynamics · 2009-08-14

<Edit>

difference between Appln. Rouding precision , Payment toler

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