Hello,
Client buys assets for use in mining & extraction (IS-OIL) in EUR during a year. This is recorded in Group Currency USD using exchange rate at that time. After a few years client issues these to a project using 221 movement, when the exchange rate is different. This movement type credits asset in USD calculated using the exchange rate on date of issue. This causes the discrepancy in Group Currency values: the correct value of asset is not fully relieved from the asset account.
Example:
1/1/2010 - Purchased 1 unit of asset @ EUR 1000 - USD 1,300:
Dr. Asset EUR 1000 - USD 1300
Cr. Cash/AP EUR 1000 - USD 1300
7/1/2015 - Issued 1 unit to project
Dr. GL Acct 700000-Project A EUR 1000 - USD 1100
Cr. Asset EUR 1000 - USD 1100
The 221 movement should have taken the USD value at time of purchase of $1300.
This causes the asset master to show no quantity, no local currency (EUR) value, but $200 USD value.
Can someone please help?