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| View Issue Details[ Jump to Notes ] | [ Issue History ] [ Print ] | |||||||||||
| ID | ||||||||||||
| 0023116 | ||||||||||||
| Type | Category | Severity | Reproducibility | Date Submitted | Last Update | |||||||
| feature request | [Openbravo ERP] 09. Financial management | major | always | 2013-02-19 15:47 | 2013-04-26 08:54 | |||||||
| Reporter | pjuvara | View Status | public | |||||||||
| Assigned To | dmiguelez | |||||||||||
| Priority | normal | Resolution | open | Fixed in Version | ||||||||
| Status | new | Fix in branch | Fixed in SCM revision | |||||||||
| Projection | none | ETA | none | Target Version | ||||||||
| OS | Any | Database | Any | Java version | ||||||||
| OS Version | Database version | Ant version | ||||||||||
| Product Version | 3.0MP19.1 | SCM revision | ||||||||||
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| Modules | Core | |||||||||||
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| Regression introduced in release | ||||||||||||
| Regression introduced by commit | ||||||||||||
| Triggers an Emergency Pack | No | |||||||||||
| Summary | 0023116: Incorrect handling of currency gain/loss results in invalid balance sheet | |||||||||||
| Description | Consider the following situation 1) You have a ledger with a base currency, let's say USD 2) You have two financial accounts, A and B, in a foreign currency, let's say EUR 3) The exchange rate from 01-Jan-2013 to 31-Jan-2013 is 1 EUR = 1.30 USD 4) On Jan-31, account A has a balance of 100 EUR; that appears on the balance sheet as 130 USD 5) The exchange rate changes on Feb 1 and it goes to 1 EUR = 1.35 USD 6) On Feb-2, you transfer 100 EUR from account A to account B; the operating balance of account A goes to 0 and you expect it to appear as 0 on the balance sheet. However, the effect of transferring money from account A to account B, which is done as creating a G/L Item transaction to a transfer account is to create the following accounting entry: Bank Account A:(Cr) 100 EUR (135 USD) EUR Fund Transfer: (Dr) 100 EUR (135 USD) The accounting entry is balanced both in base currency and foreign currency. The operating value of the account is correctly reported as 0 EUR. However in the balance sheet it appears as -5 USD, which is incorrect. | |||||||||||
| Steps To Reproduce | See above. | |||||||||||
| Tags | No tags attached. | |||||||||||
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(0056551) pjuvara (reporter) 2013-02-19 15:52 |
I am not entirely sure how this bug should be resolved. My guess is that the correct action would be to revalue all financial accounts denominated in a foreign currency when the exchange rate changes. That way on Feb 1st, when the new exchange rate becomes effective, you have the following accounting entry: Bank Account A: (Dr) 5 USD Foreign Currency Bank Revaluation: (Cr) 5 USD With that accounting entry, when you then transfer funds out of the account, the balance sheet remains accurate. |
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Issue History |
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| Date Modified | Username | Field | Change |
| 2013-02-19 15:47 | pjuvara | New Issue | |
| 2013-02-19 15:47 | pjuvara | Assigned To | => dmiguelez |
| 2013-02-19 15:47 | pjuvara | Modules | => Core |
| 2013-02-19 15:47 | pjuvara | Triggers an Emergency Pack | => No |
| 2013-02-19 15:52 | pjuvara | Note Added: 0056551 | |
| 2013-04-26 08:54 | dmiguelez | Type | defect => feature request |
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Issue History |
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