on 12-01-2008 9:50 AM
Good Afternoon
Could someone help me my customer deals in different currencies. Their local currency is ZAR they have two bank accounts, one is a ZAR and the other one which they trade from is USD and the trade in all currencies from EURO to HK$.
The problem I have is that there is always a small variance on the payment means because of the three currencies and a rounding due to decimal places which is fine, however my client would like that variance to be posted to a currency rounding account and not appear on the Debtors statement, how does one go about this.
I did go to document settings and entered a Under/Overpayment Amt Allowed but it still posts that variance amount on the debtors balance, what am I doing wrong.
Thank you
Ronald
Hi Ronald,
The overpayment/ underpayment function only applies to receipts in LC. For receipts in currency other than Local currency, the difference is posted as payment on account and shows up in the debtors statement.
To overcome this, you can follow the below workaround -
1. Specify the actual amount credited to bank in the Bank transfer payment means. (101 USD against Invoice of 102 USD)
2. Go to the Cash tab of payment means. Select the GL account as the currency rounding account.
3. Specify the difference here.(1 USD)
4. Add the document.
This will post the 1 USD to the Currency rounding account and will not show in the debtors statement.
Hope this helps.
Regards,
Hamsa
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Hi Ronald,
You can set the rounding definitions to different currencies in the Currency Setup.
To access this window, choose Administration ---> Setup --> Financials --> Currencies.
Hope this will help you.
Regards,
Abhishek
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