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| View Revisions: Issue #17276 | [ All Revisions ] [ Back to Issue ] | ||
| Summary | 0017276: Multicurrency - gain/loss recognition in case of a system exchange rate differente that the exchange rate entered by end-user | ||
| Revision | 2011-05-19 17:15 by psanjuan | ||
| Steps To Reproduce | Organization: F&B US Inc Accounting schema : USD Vendor : Happy Drinks Bank : EUR Purchase Invoice = 2310 USD Exchange rates = (system): February 2012 = 0.8 usd/eur (1.25 eur/usd) March 2012 = 0.714286 usd/eur (1.4 eur/usd) April 2012 = 0.7 usd/eur (1.428571 eur/usd) Payment 1 in February 2012 for 770 USD Payment posting: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*0.8$/EUR = 616 EUR and 616 EUR * 1.25 EUR/$ = 770 USD - which implies a Financial Account transaction = 616 EUR (770 USD) Payment 2 in March 2012 for 770 USD Payment posting: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*0.714286 $/EUR = 550 EUR and 616 EUR * 1.4 EUR/$ = 770 USD - which implies a Financial Account transaction = 550 EUR (770 USD) Pament 3 in April 2012 for 770 USD In this case the end-user manually changes the exchange rate to 1.4 usd/eur instead of 0.7 usd/eur (which implies an opposite exchange rate = 0.714286 to be used instead of the one that the system has for that period of time and which is = 1.428571) Payment posting should be: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770 $*1.4 $/EUR = 1078 EUR and 1078 EUR * 0,714286 EUR/$ = 770 USD - which implies a Financial Account transaction = 1078 EUR (770 USD) and that's it. The fact that the system does has a diferent exchange rate that the one entered by the end-user does not mean eithe a gain/loss. that is a systemic error. What the system does now is: 770 usd (acccount payable) DEBIT 1540 usd (bank in transit) CREDIT - calculation = 770 $*1.4 $/EUR = 1078 EUR and 1078 EUR * 1.428571EUR/$ = 1540 USD 770 usd (currency gain ) DEBIT Which implies a Financial Account transaction = 1078 EUR (770 USD) - this part is ok |
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| Revision | 2011-05-19 17:14 by psanjuan | ||
| Steps To Reproduce | Organization: F&B US Inc Accounting schema : USD Vendor : Happy Drinks Bank : EUR Purchase Invoice = 2310 USD Exchange rates = (system): February 2012 = 0.8 usd/eur (1.25 eur/usd) March 2012 = 0.714286 usd/eur (1.4 eur/usd) April 2012 = 0.7 usd/eur (1.428571 eur/usd) Payment 1 in February 2012 for 770 USD Payment posting: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*0.8$/EUR = 616 EUR and 616 EUR * 1.25 EUR/$ = 770 USD - which implies a Financial Account transaction = 616 EUR (770 USD) Payment 2 in March 2012 for 770 USD Payment posting: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*0.714286 $/EUR = 550 EUR and 616 EUR * 1.4 EUR/$ = 770 USD - which implies a Financial Account transaction = 550 EUR (770 USD) Pament 3 in April 2012 for 770 USD In this case the end-user manually changes the exchange rate to 1.4 usd/eur instead of 0.7 usd/eur (which implies an opposite exchange rate = 0.714286 to be used instead of the one that the system has for that period of time and which is = 1.428571) Payment posting should be: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770 $*1.4 $/EUR = 1078 EUR and 1078 EUR * 0,714286 EUR/$ = 770 USD - which implies a Financial Account transaction = 1078 EUR (770 USD) and that's it. The fact that the system does has a diferent exchange rate that the one entered by the end-user does not mean eithe a gain/loss. that is a systemic error. What the system does now is: 770 usd (acccount payable) DEBIT 1540 usd (bank in transit) CREDIT - calculation = 770 $*1.4 $/EUR = 1078 EUR and 1078 EUR * 1.428571EUR/$ = 1540 USD 770 usd (currency gain ) DEBIT Which implies a Financial Account transaction = 1078 EUR (770 USD) and that's it. |
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| Revision | 2011-05-19 17:12 by psanjuan | ||
| Steps To Reproduce | Organization: F&B US Inc Accounting schema : USD Vendor : Happy Drinks Bank : EUR Purchase Invoice = 2310 USD Exchange rates = (system): February 2012 = 0.8 usd/eur (1.25 eur/usd) March 2012 = 0.714286 usd/eur (1.4 eur/usd) April 2012 = 0.7 usd/eur (1.428571 eur/usd) Payment 1 in February 2012 for 770 USD Payment posting: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*0.8$/EUR = 616 EUR and 616 EUR * 1.25 EUR/$ = 770 USD - which implies a Financial Account transaction = 616 EUR (770 USD) Payment 2 in March 2012 for 770 USD Payment posting: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*0.714286 $/EUR = 550 EUR and 616 EUR * 1.4 EUR/$ = 770 USD - which implies a Financial Account transaction = 550 EUR (770 USD) Pament 3 in April 2012 for 770 USD In this case the end-user manually changes the exchange rate to 1.4 usd/eur instead of 0.7 usd/eur (which implies an opposite exchange rate = 0.714286 to be used instead of the one that the system has for that period of time and which is = 1.428571) Payment posting should be: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770 $*1.4 $/EUR = 1078 EUR and 1078 EUR * 0,714286 EUR/$ = 770 USD - which implies a Financial Account transaction = 1078 EUR (770 USD) and that's it. The fact that the system does has a diferent exchange rate that the one entered by the end-user does not mean eithe a gain/loss. that is a systemic error. |
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| Revision | 2011-05-19 17:10 by psanjuan | ||
| Steps To Reproduce | Organization: F&B US Inc Accounting schema : USD Vendor : Happy Drinks Bank : EUR Purchase Invoice = 2310 USD Exchange rates = (system): February 2012 = 0.8 usd/eur (1.25 eur/usd) March 2012 = 0.714286 usd/eur (1.4 eur/usd) April 2012 = 0.7 usd/eur (1.428571 eur/usd) Payment 1 in February 2012 for 770 USD Payment posting: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*0.8$/EUR = 616 EUR and 616 EUR * 1.25 EUR/$ = 770 USD - which implies a Financial Account transaction = 616 EUR (770 USD) Payment 2 in March 2012 for 770 USD Payment posting: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*0.714286 $/EUR = 550 EUR and 616 EUR * 1.4 EUR/$ = 770 USD - which implies a Financial Account transaction = 550 EUR (770 USD) Pament 3 in April 2012 for 770 USD In this case the end-user manually changes the exchange rate to 1.4 usd/eur instead of 0.7 usd/eur (which implies an opposite exchange rate = Payment posting should be: 770 usd (acccount payable) DEBIT 770 usd (bank in transit) CREDIT - calculation = 770$*1.4 $/EUR = 1078 EUR and 1078 EUR * 0,714285714 EUR/$ = 770 USD - which implies a Financial Account transaction = 1078 EUR (770 USD) |
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| Revision | 2011-05-19 17:00 by psanjuan | ||
| Steps To Reproduce | Organization: F&B US Inc |
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| Revision | 2011-05-19 16:54 by psanjuan | ||
| Steps To Reproduce | Organization: F&B US Inc |
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