Hi All, One of our client is making use of Additional reporting Currency feature, Ideally all the GL entries should have Addition. Curr. Amount, but it has been observed that some entries have amount 0 in this field even though GL entry Amount field is having Amount. As the client is making use of this feature to make financial reports, reports are not matching with with those in LCY. This seems to be happening more frequently with the Realized and Unrealized gain/loss accounts. Any ideas why is it so??[?]
Expecting a reply…[:(]
Bit rude to be expecting, [:(!] tis is a volunteer site remember. Anyway… Adjustment acont will often quite correctly have zero values, these are adjustments to bring roundings etc in line. You are not supposed to expect the alternate currency to tie to the pennyto the actuall accounts, there are just too many factors that make this impossible.
Dear Mr. David, only reason I said expecting cause I found this behaviour of Additional Currency in standard DB as well and thats why I was expecting a helpful reply as many people must have had came across it… When I said expecting I really dint meant that I was demanding for a reply, rather I was waiting for a helpful reply,I’m fully aware of the fact that its a volunteer site. About Reporting Currency, It’s not rounding problem, many entries having amount in LCY more than thousands are not having Add. Currency amount, thats why I was wondering whether I’m missing some setup or something of that sort.
I think 24 hrs is a bit too fast to be “expecting” thats all. A “BUMP” is Ok after a week, or a few days, but not the next day, that’s all. So, it does look like you have a serious issue. Obviously you are missing some details in your post, (probably the reason that you did not get the 24 hr response you expected). So please post some details of the issue.
Hello, Add. Reportning Currency is feature is activated. 1). All financial reports are coming in Add. Currency as well. 2). Posting of some transactions like payments where customers involved have currency =Reporting currency, results in GL entries with 0 Add. Curr. Amt.(Not all customers having currency =Reporting currency) 3). As mentioned earlier Realized gain/Loss accounts are showing add. Curr. Amt. =0 for some transactions and and for some other transactions working fine. While Running Adj. Currency batch job, Add. reporting Currency is also set. This is what I have observed so far. Am I mising anything??? Please let me know…[:)]
Is this date related? FOr example, is this something happend over a particular period, or is it on and off. If on and off, is there anything else about the bad transactions that you can see as a common factor.
No, it’s not date related, but as you said it’s On and Off. The transactions where it seems to be happening more frequently is currency gain and loss.
Does this not make sense (I will use CAD and base currency and USD as Additional Reporting Currency for my example): 1) Create a Sales Invoice in USD (Additional) for $100. This posts as $130 CAD in the G/L (with the Additional Amount of 100). 2) Change the Exchange Rate to 1.25 3) Run the Adjust Exchange Rate Periodic. I would expect to see a posting in the unrealized loss/gain for -5 in the Amount with 0 to the Additional Amount (as the USD value does not need to be adjusted). Is this not valid under your circumstances?
Hello Chris, It makes sense when we talk in terms of LCY. But for a Account Schedule report, where Exchage Gain and Loss is a separate line as such, it gives wrong picture when you take report in add. Currency.I mean amount in LCY=-5 and Add Currency =0. Am I right? What I understood from add. Reporting currency is that all transactions irrrespective of type will have Add. Cur. Amt in GL entry as <>0 if Amount <>0. Am I under wrong impression??..
What is the exchange rate for the ACY vs LCY for the date of the postings?
Yes Rajesh you are under the wrong impression. As Chris says, the adjustment accounts are special accounts, and of course the numbers will be different. Chris expalins this clear enough. As is often the case you are looking at the problem with your eyes closed. In your situation, I think the issue is woth you accounts scedules, or what ever reporting you are doing.
sorry David, but It’s not that 'm looking at problem with eyes closed, if that would have been the case, I would have never followed up the topic so far and would have accepted your suggestion long back that is cause of rounding or many other factors. As I said what chris saying is perfectly fine,but I was wondering if thats the case then how would I’ll be able to take care of Exchnage Gain/Loss account while reporting in Add. Currency.
What I understood from add. Reporting currency is that all transactions irrrespective of type will have Add. Cur. Amt in GL entry as <>0 if Amount <>0.
If you look at what Chris has said - he states that the currency rate alters on his transaction where the currency is the additional reporting currency. So if $130 USD WAS at 1.3 and now is at 1.25 then the difference in the additional reporting currency is 0 - it is STILL $130. Therefore although the currency gain and loss transaction creates an amount this cannot affect the reporting currency, so therefore the above quote is incorrect. I will say however this is the logic I have picked up from this posting and stuck my oar in, it is not something I have tested!
If you have a gain loss account, then the sole purpose of that account is to balance currency differences. There is no logical reason that the two accounts would ever be concistant. Why on earth would you have a balancing account if not to balance differences. You need to concentrate on the Account Schedule, and get that to make sense. It is quite possible that the add curr values in the gain loss accounts are wrong, I am just trying to say that you need to take a wider view, and instead of looking at the detail level, look at it globally and determine what the issue is.