Revision [1043]

Last edited on 2008-01-20 22:38:49 by PhilDaintree
Additions:
The Bank Accounts table needs to record the base currency for the bank account - currently all bank accounts are in the functional currency so a new field needs to flag the base currency of the account.
The Bank Trans table needs to record the conversion rate between the bank base currency and the functional currency. Currently we only have the conversion rate between the currency of the payment (that could be different from the currency of the account - we only allow functional currency bank accounts at the moment of course)
We don't currently have a facility to print out bank account transactions... we would need this report to show both the currency of the bank account and in the functional currency also.
Deletions:
The Bank Accounts table needs to record the base currecny for the bank account - currently all bank accounts are in the functional currency so a new field needs to flag the base currency of the account.
The Bank Trans table needs to record the conversion rate between the bank base currency and the functional currency.


Revision [1042]

Edited on 2008-01-20 05:01:07 by TimSchofield
Additions:
We would of course need an additional field in the bankaccounts table to hold the account currency. This should not be allowed to be changed once transactions are made to that account.
Deletions:
We would of course need an additional field in the bankaccounts table to hold the account currency. This should not be allowed to be changed once transactions are made to that account. BTW we should also prevent the currency being changed in the customer account, supplier account and company details once transactions are entered.


Revision [1041]

Edited on 2008-01-20 04:36:27 by TimSchofield
Additions:
<Tim>
This is a complex subject, but an important omission from the current webERP. We currently deal ok with transactions in multi currencies in our functional currency bank accounts, so the problem is how to deal with transactions into foreign currency accounts.
Lets take an example. A customer gives us a cheque for USD100 in payment for an invoice of EUR80 and we wish to bank this in our EUR account and our functional currency is GBP. Lets say the standard USD->GBP rate is 2.0 and the standard EUR-GBP rate is 1.5 (these will be set up in the currencies section of webERP). However the bank gives us a USD->EUR rate of 1.4 and credits our EUR account with EUR71.43. I believe the general ledger transactions would be in GBP and are
Dr EuroBank 47.62 (EUR71.43/1.5)
Cr Debtors 53.33 (EUR80/1.5)
Dr Ex gain/loss 5.71
If the banktrans table holds the bank account (so the currency of the bank account can be obtained), and the actual exchange rate for the transaction (USD->EUR 1.4) in the above transaction, and the actual currency of this transaction (USD) this should be sufficient to recreate the euro bank account transactions - However this could produce rounding problems would it be better to add a field to hold the bank currency value of the transaction in banktrans?
We would of course need an additional field in the bankaccounts table to hold the account currency. This should not be allowed to be changed once transactions are made to that account. BTW we should also prevent the currency being changed in the customer account, supplier account and company details once transactions are entered.
</Tim>


Revision [1040]

Edited on 2008-01-14 15:14:49 by PhilDaintree
Additions:
<Comment from Micheal>
'm not familiar with all the inner workings of webERP. But can add the following comments based on a study of frontaccounting which seems to handle multiple currency bank accounts well:
1) The exchange rate is kept in a table arranged by date. As new transactions take place that require an updated exchange rate it is entered into this table. This way the system always remembers what exchange rates were used for a transaction.
2) a useful button is placed in the bank transfer form to allow updating the exchange rates. This button queries an online site and looks up the most recent exchange rate for the 2 currencies - code is easy to find in FA.
3) near as I can tell the bank_trans table does not record the exchange rate used, but just records a withdrawl from one account (say account A) in that accounts currency, and a deposit in another account (say account B) in that accounts currency. No reference is made to the exchange rates in bank_trans. it is implied because different amounts are taken out/put into the different accounts.
4. the gltrans table records everything in the base currency. in gltrans, what comes out of account A is the same as what goes into account B.
-- 58.247.240.112 (2008-01-14 13:01:04)
</Michael>


Revision [1039]

The oldest known version of this page was created on 2008-01-12 21:23:05 by PhilDaintree
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