Incorrect posting with internal reconciliation

[Former Member]

Hello

I have the next scenario

I have a supplier with multicurrency.

I make a payment in a currency different than the local and then i register an invoice also in a different currency. There is a diferent exchange rate between the payment and the invoice.

If i make an internal reconciliation, the system only does it in the local currency. So i dont get the post for the loos or gain in the exchange rate.

If i try to link the payment with the invoice in the outgoing payment i need to make a payment, and it cannot be 0.

Any ideas?

Thanks

Jacobo

[Former Member]

Hi Jacobo

I've checked your scenario and is possible to reconcile a payment in a currency different than the local with an invoice also in a different currency. Did you test it in patch 41 of version 2007A?

thanks and regards

Rui Pereira

[Former Member]

Hello

Did you do it in the internal reconciliation or in the received paymente module??

Thanks

Jacobo

[Former Member]

Hi Jacobo

I did it in the Business partner internal reconciliation.

regards

Rui

[Former Member]

Hello Rui

I am still unable to do it.

The scenario is the next.

1.- Create a BP with multicurrency

2.- Create a payment to BP in a foreign currency with an exchange rate

3.- Create an invoice in foreign currency for the same amount as payment in foreign currency, but with a diferent exchange rate.

4.- Try to make the internal reconciliation, and you dont get any post for gain or lose in te exchange rate. In the internal reconciliation window i cannot change the currency.

If you try to link the invoice with the paymente, in the received payment option, you are unable to do it because you have to make a payment greater than zero.

Also if i try to make a journal post for the difference iam unable because i get an error because i am using deffered tax.

Any ideas??

Thanks

Jacobo

Edited by: Jacobo Agami on Sep 12, 2008 6:32 AM

[Former Member]

Hi Jacobo

this scenario is diferent from one you posted before. The reason for getting that error message is due to the

fact that you want to reconcile a manual JE to post the exchange rate difference together with a

deferred document(invoice) and a payment.

This scenario is not supported as per SAP note 1119633.

Please take a look at this note.

regards

Rui

[Former Member]

Hello

Rui

I have already check the note.

But it says that you Would NOT be able to:

Reconciliate journal entries with deferred documents.

So i will still have the problem.

Thanks

Jacobo

[Former Member]

Hi Jacobo

that's the current system behaviour which is not supported in version 2007A:

- not able to reconcile a manual JE to post the exchange rate difference together with a deferred document(invoice) in BP internal Reconciliation.

But there's two options:

1-in BP Internal reconciliation, you can do it seperately using the same payment.

2-in Incoming/Outgoing payments, you can add a new payment basing the invoice and the manual JE.

This is the solution I found.

If you need any help, let me know

best regards

Rui Pereira

[Former Member]

Hello Rui

Thanks for your help, i dont understand what do you mean with doing it separately.

The problem is that the payment has been created before the invoice, for the total amount, so when i try to link them in the incoming/outgoing payment, it doesnt let me because i get an error ·the confirmation amount must be grater than zero"

Thanks

Regards

Jacobo

[Former Member]

Hi Jacobo

when I said separately, I mean partially reconcile the invoice with a payment and doing the same

with the manual journal entry with the same payment.

yes, B1 doesn't let us create payments with 0 amount which is another system behaviour as in previous

versiones.

Anyway you can raise a Development request in the Forum: SAP Business One Product Development Collaboration for this particular functionality.

weblink:

best regards

Rui

[Former Member]

Hello Rui

Thank you very much for your help. I have found another solution that it can be useful.

Iam creating a payment directly to the gain/lose exchange rate account, and then i make the reconciliation including this payment.

The system let me reconcile with the payment, but it doesnt let me with the journal.

I hope this can be fixed in newer versions.

Thanks

Jacobo

[jitin_chawla]

Hello,

When the Payment is made based on the Invoice, the Exchange rate is booked in the Journal Entry created for that payment entry (if the exchange rate is different). Even in case of partial payment the same happens.

However,

Internal reconciliation with Multicurrency BP accounts are in LC only and as a result any exchange rate difference on reconciliation can only be posted by the user manually posting a journal for the difference.

This is facilitated through the internal reconciliation screen where the user can create a journal to e.g. credit the BP account and debit the exchange rate loss account - using the Adjustment button at the bottom of the screen.

E.g. if the MC BP has the following transactions waiting for

internal reconciliation:

Invoice FC: 100 LC: 3300

Payment FC: (100) LC: (3500)

In this case if the difference, of 200, is identified as being an

exchange rate difference then the user should select both of these transactions for internal reconciliation in the manual internal reconciliation screen and then select the adjustments button to create a journal entry - when entering this journal entry the first line will automatically be populated with the reconciliation difference - in this case of 200 and the user should then create the second line of this journal entry to post the credit of 200 to the exchange rate difference gain account.

After posting this journal entry the following 3 lines will then be

selected for reconciliation:

1. Invoice FC: 100 LC: 3300

2. Payment FC: (100) LC: (3500)

3. JE x-diff FC: 0 LC: 200

As this reconciliation balance is now zero these three lines can now be reconciled.

Hope it helps.

Kind Regards,

Jitin Chawla

[K_Pauquet]

Hi Jacobo,

all transactions & balances of a multicurrency (MC) business partner (BP) are held in local currency (LC). The figures shown in another currency are purely a display of the LC amount in foreign currency (FC) according to the current exchange rate.

You will see that the reconciliation currency of an MC BP is also LC. If you would reconcile e.g. an invoice & a payment for an MC BP that do not match in LC, the system will point out that the reconciliation difference is not zero. You could then use an adjustment JE which posts the difference to the Exchange Rate difference account.

All the best,

Kerstin

[Former Member]

Hi Kerstin and Jitin

Thanks for your answer

I have try to do it, but i am unable because iam using deffered tax. And i get an error that you cannot reconcile if you are using deffered tax.

I get the next error:

Deferred tax invoices can only be reconciled together with other invoice and payment transactions (or by basing credit memos directly on invoices)

Thanks

Jacobo

Edited by: Jacobo Agami on Sep 8, 2008 6:14 PM

Edited by: Jacobo Agami on Sep 8, 2008 6:35 PM

[JesperB1]

Hi Jacobo,

There has been substantial change in behaviour here between version 2005 and 2007, which version are you using?

Thanks,

Jesper

[Former Member]

We have this, and you rsolution was to create a Currency Difference G/L Code.

[Former Member]

Hi Jacobo,

Please check SAP note 909074 to see if it suits you.

Thanks,

Gordon