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Jun 25, 2008 at 04:43 AM

Bal adj account is picked up in payment run for a vendor

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When we do payment program, one additional line item is created for payments in foreign currency other than exchange difference account. The additional line item is created for balance sheet adjustment account which is assigned in foreign currency revaluation settings. I and not able to figure out how this line item is created for payment transactions.

Loc Cur Doc Cur

Vendor A/c. 2000 1000

Bank 2500- 1000-

AP - Adj (3rd Party) 400

Ex. Loss - Realised 100

This is created with revaluation the due item i.e. original invoice amount with current rate i.e. rate on payment date and posted to AP-Adj (3rd Party) A/c.

AP - Adj (3rd Party) is the valuation account for balance sheet adjustment

Ex. Loss - Realised is realized account maintained in oba1

adjustment

account will only appear in case of "VALUATION OF OPEN ITEM" and not at

the clearing time.

but in the above case while making payment ,the balancesheet adjustment account has got picked up during the automatic payment program...

any idea on above entry why the balancesheet adj account has picked up...