0030039: Vendor Prepayment accounting could be improved for Payment Out remittances including a purchase order (same applies to sales)

Description

Vendor Prepayment accounting could be improved for Payment Out remittance including a purchase order (same applies to sales)

Steps To Reproduce

Install Remittance module and apply remittance dataset in F&B España organization.
All steps described below need to be done in F&B España.

Navigate to payment method window and create a new one with below setup:
Name = Payment Out remittance Multi-currency
Payment Out Allowed = Yes
Execution Type = Automatic
Execution Process = In Remittance
Deferred = Yes
Make payments in other currencies = Yes

Navigate to remittance type and create a new one with below setup:

Name = Payment Out Remittance
Payment Method = Payment Out remittance Multicurrency
Posting Allowed = Yes

Accounting tab:
F&B España - Settlement account (57200), Sent Account (40100)
F&B International - Settlement account (1110), Sent Account (1120)

Navigate to Business Partner window and create a new one with below setup:
Purchase Price List in USD
PO Payment Method = Payment Out Remittance Multicurrency
PO Payment Terms = 30 days
PO Financial Account = Cuenta de banco.

Go to Conversion rate window and make sure that below conversion rates are configured:
From 01-04-2015 to 30-06-2015 USD to EUR 1.36
From 01-07-2015 to 30-09-2015 USD to EUR 1.75

Go to purchase order window and create a new one (ie PO 30) for Vendor USA, dated on 28-05-2015, Product = Cerveza Ale 0.5L, for a total line net amount = 1000.00 USD
Book the order

Navigate to Remittance window and create a new one with below setup:
Remittance Type = Payment Out Remittance Multicurrency
Transaction Date = 28-05-2015
Expected Date = 30-07-2015
Name = Remesa PO USD
Save

Click on Select Orders or Invoices. Once in that new window select "Orders" in the field "Document". Click on "Show payments for alternative currencies", select purchase order just created PO 130. Press Process.

Process and Post the remittance. Check below posting which is correct:

Dollars
1000.00 (1410) Vendor Prepayment - Debit
1000.00 (1120) Funds in Transfer- Credit

Euros
1360.00 (40700) Anticipo proveedores - Debit
1360.00 (40100) Proveedores efectos - Credit

Go to Settle and Protest Remittances window, select "Remesa PO USD" remittance and Settle it dated on 30-07-2015.

Go to Remittance window, search by "Remesa PO USD", and navigate to Settled tab. Get that line post. Below posting will be shown:

Verify below accounting for F&B España Euros General Ledger:
1360.00 (40100) Proveedores efectos - Debit
1360.00 (57200) Banco - Credit

Verify below accounting for F&B International Group Dollar General Ledger
1000.00 (1120) Funds In transfer - Debit
1000.00 (1110) Check in - Credit

F&B España Euros General Ledger is NOT correct.

Go to Purchase Invoice window and create a new one dated on 30-07-2015 for Bebidas Alegres. Add lines by using "Create Lines From" process button. Select order 129 in our example.

Complete and post the Invocice.

"Verify below accounting for F&B España Euros General Ledger which is correct, regardless it can be improved as described in section "Proposed Solution".

1750.00 (60000) Compra de Mercaderias - Debit
1360.00 (40700) Anticipo a proveedores - Credit
390.00 (76800) Diferencias positivas de cambio - Credit

Verify below accounting for F&B International Group Dollar General Ledger
1000.00 (5360) Product Expense - Debit
1000.00 (1410) Vendor Prepayment - Credit

Proposed Solution

At remittance settle July Conversion rate should have been used (1.75).
See issue: 29941

Correct correct accounting should have been:
1360.00 (40100) Proveedores efectos - Debit
390.00 (66800) Diferencias negativos de cambio - Debit
1750.00 (57200) Banco - Credit

Above accounting can also be improved as shown below:

1630.00 (40100) Proveedores efectos - Debit
390.00 (40700) Anticipo proveedores - Debit
1750 (57200) Banco - Credit

Moreover, purchase invoice accounting can also be improved as shown below:

1750.00 (60000) Compra de Mercaderias - Debit
1750.00 (40700) Anticipo a proveedores - Credit

* if at the time of posting the purchase invoice, there is also a conversion rate difference, then correct posting should be:

2140.00 (60000) Compra de Mercaderias - Debit
1750.00 (40700) Anticipo a proveedores - Credit
390.00 (76800) Diferencias positivas de cambio - Credit

Issue History
Date Modified	Username	Field	Change
2015-05-28 13:04	psanjuan	New Issue
2015-05-28 13:04	psanjuan	Assigned To	=> Triage Finance
2015-05-28 13:20	psanjuan	Steps to Reproduce Updated	View Revisions
2015-05-28 13:20	psanjuan	Proposed Solution updated
2015-05-28 13:44	psanjuan	Summary	Vendor Prepayment accounting could be improved for Payment Out remittances including a purchase order. => Vendor Prepayment accounting could be improved for Payment Out remittances including a purchase order (same applies to sales)
2015-05-28 13:44	psanjuan	Description Updated	View Revisions

Relationships [ Relation Graph ] [ Dependency Graph ]

Notes
There are no notes attached to this issue.