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Former Member

Incorrect posting with internal reconciliation

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

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6 Answers

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    Former Member
    Sep 04, 2008 at 12:47 AM

    Hi Jacobo,

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

    Thanks,

    Gordon

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    Former Member
    Sep 04, 2008 at 09:39 AM

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

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  • Sep 04, 2008 at 11:46 AM

    Hi Jacobo,

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

    Thanks,

    Jesper

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  • Sep 04, 2008 at 01:23 PM

    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

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    • 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

  • Sep 04, 2008 at 07:11 PM

    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

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    Former Member
    Sep 11, 2008 at 04:15 PM

    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

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    • Former Member 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