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Currency Valuation GL/AP
04-26-2013, 04:32 AM
Post: #1
Currency Valuation GL/AP
I am testing my Data before I go live, I want to know where I am going wrong. I have set up by base currency as QAR. Exchange rate conversion to manual. In exchange rate I have set up exchange rate of USD = 3.6415 (QAR 3.6415 = 1 USD OR 1 QAR = 0.2746 USD)

I paid a Vendor USD 500/- (Supplier currency set to USD) which is equal to QAR 1820.75 . I checked the transaction in GL (AP Control A/c), it gives me correct effect, but when I take the “Local Currency Supplier Totals” in UTILITIES, it gives me wrong value i.e. USD 500/- = QAR 137.31. Same case when I run the report “Supplier Balance at Prior Month End in PAYABLES

The reverse happens when I changed the exchange rate of USD to 0.2746 and again different values in both AP + GL

Where am I going wrong??
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04-26-2013, 06:23 AM
Post: #2
RE: Currency Valuation GL/AP
The exchange rate is always expressed as how many of the foreign currency = 1 of the functional currency. So in your case you should be using 0.2746

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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04-27-2013, 11:38 PM
Post: #3
RE: Currency Valuation GL/AP
(04-26-2013 06:23 AM)phil Wrote:  The exchange rate is always expressed as how many of the foreign currency = 1 of the functional currency. So in your case you should be using 0.2746

That does not solve my problem, the reports still gives the same differecnces

Another issue I noticed

When I buy from the supplier in FC for e.g. USD 500 I have following entries (1 QAR = 0.2746 USD)
Purchase a/c Debit QAR 1820.75
AP Control a/c Credit QAR 1820.75 (USD 500/- Payable to Supplier)

One month later I pay the supplier USD 500/- but the exchange rate is now (1 QAR = 0.275 USD)

Hence the transaction should be

AP Control a/c Debit QAR 1820.75 (USD 500 Paid to Supplier)
Bank A/c Credit QAR 1818.18
Diff in Exchange Debit QAR 2.57

But when I simulated this in WEBERP I noticed that the transaction amount is QAR 1818.18 thereby showing a difference of QAR 2.57 in AP Control a/c.

How do I avoid this
.
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04-28-2013, 07:19 AM
Post: #4
RE: Currency Valuation GL/AP
The difference on exchange is calculated and posted only when you allocate the payment to the invoices it is paying.

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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04-28-2013, 08:17 AM
Post: #5
RE: Currency Valuation GL/AP
It all seems to work ok for me - a screenshot might be useful.
Thanks

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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04-28-2013, 07:51 PM
Post: #6
RE: Currency Valuation GL/AP
(04-28-2013 07:19 AM)phil Wrote:  The difference on exchange is calculated and posted only when you allocate the payment to the invoices it is paying.

Yes the difference of exchange is taken care off after allocation
THANKS-A-LOT
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