Realized gain / loss on bank (Cust. Ledger Entry)

Dynamics 365 Business Central/NAV User Forum
1

Hi ,

I got this issue and I belive this is a bit silly , but you can always tell me otherwise.

Customer A has got two invoices in FCY (inv1 , inv2).

Customer A makes a Payment for inv1, inv 2 and maybe for sth else.

When we match the payment with inv1 and inv2 there is an urealized gain posted on the customer ledger entry but not on Inv1 and Inv2, rather on the payment’s entry.

This of course only happens when we match the payment with multiple invoices.

On the customer statment though it looks silly, the realized gain should have hit inv1 and inv2. Am I wrong here ?

Tested it in Cronus 5 and 6 R2 and same result.

Any ideas on this ?

ta,

gabor

2

No - as you newer know when the payment will be made. Invoices are posted and “forgotten”, nothing more to post there. Payment can occur substantially later, even in another accounting period, so even theoretically you can not post gains/losses back-dated, it will change balances of probably closed periods.

FCY gain/loss is directly related to PAYMENT (and it’s date), not Invoice, so Navision does post it according to accounting rules.

3

I dont quite agree, especially if the period is not closed… I wouldnt be the one that is updated retrospective in NAV…

Besides the fx comes from the application… it shoud at least be linked to the items that it relates to.

g.

4

In simple where have you got the gain or loss, is it the invoice or the payment ?

5

its hitting the payment (only if the payment is matched among multiple payments )

This is why I also dont accept the functionality.

Should you pay an item retrospective fully then the Gain/loss is posted to the invoice …

g.

6

The invoice is laready posted and the amount is being notified to the customer, so how do u accept that the gain or loss should again hit the invoice insted of payment.

7

I am sorry but this is not correct , Customer is notified on the FCY amount . The impact on gain/loss is only known when his payment is received and its matched to the invoice.

Plus like I wrote before if the payment matched against one invoice it works as expected (hits the invoice).

If the payment is split among multiple invoices then we see this issue !

g

8

Could you please give the example with the amounts.

I am not getting this scenario.

9

Unrealize Gain should hit Outstanding Invoices , where their values changes and hit AR as well, so Cust. Ledger Entry updated at Invoice.

Realized Gain should not hit Invoices: for

  1. Realized Gain value the differences between Original Rate and Closing Rate*. (where we “fully paid / matched” the invoices)

  2. It’s no more Outstanding Invoices ( It will not be Realized until an outstanding invoice get matched / closed ).

  3. It has no impact on AR. AR amount closed with last booked rate, the closing ex.diff goes to income/expenses directly.
    (otherwise, you would have an extra unrealised gain/loss , then carry them all out , then book realized with an over-stated amount.

10

Meanwhile…

Bank use Bank Ledger Entries to book payment in & out,

Cust. Ledger Entry directly refer to Accounts Receivable in Accounting term.

User should able to tell the differences right away.