Hi AD Financial experts
Kinldy look into  the below scenario

In my Account Schema, I have unchecked 'Post if Clearing Equal'. I also set default accounting of 'Inventory clearing' to  'Not Invoiced Receipts ' account. My costing method is 'Average PO'

I made a Purchase Order & Material Receipt for a product; with qty=10000  @ Us$4.00/-. My currency conversion to the local currency @3.67 for US$. I also did Vendor Invoice.

Now I returned 5000 qty (thru RMA / Vendor Return etc). Since my costing method is Average PO, Inventory debited with current average po price. I also did vendor invoice (AP credit memo) which debited payable at the purchase rate. All fine upto here.

When I looked into 'match Invoice', I can see  a credit entry for the account 'Currency Balancing'. & debit entry for 'Invoice price difference'  which  is the difference of actual PO rate with current average price.

I would like to know from how this 'currency balancing' account appear here. It should be Inventory clearing a/c.

Is this due to my setting change in accoutn schema, product accounting.

I hope Mike /Adxa can give a reply to this

Thanks
Johnson

Hello Michael McKay
Could you help me on this thread related to currency balancing.
I did a vendor return for a product which I purchased / invoiced in local currency, which I can see the difference went to 'Invoice price variance' which I think is correct.

Thanks
Johnson

Hi Johnson,

By the depth of your questions, I can see you are starting to become an ADempiere expert in your own right.  If you have a development environment, try to trace the software execution.  Set up for client accounting and immediate posting.  You can start at Match.java in client/src/org.compiere.apps.form and set a break point on the line with DocumentEngine.postImmediate… See where it takes you.  The logic behind the posting will be in there somewhere.

Hope that helps.

Mike.

Dear Mike

Thanks for the reply.

I investigated the product account settings and found the cause. As I said my costing method is 'average PO' and I kept the default account for 'inventory clearing' as the account element of 'not invoiced receipts' & also unchecked 'post if clearing equal'. The reason being I do not wish to have thes journal entry posting in my accounting fact as I learned from the document. But due to these settings, the price difference is credited to 'Currency balancing' account, instead of 'not invoiced receipts' a/c. If I set the default account of inventory clearing as product inventory clearing, then I post it then this issue will not happen.

I think this is bug which we need to fix it. WYT ?

Please see the below example:

Vendor Return: Not invoiced Receipts Dr 82527.00, Product Asset Cr 82527.00 (@16.51 avergae price; qty=5000)
Vendor Invoice (AP Credit memo): A/c Payable Dr 73400, Not invoiced Receipts Cr 73400 (@14.68 po price; qty=5000)
Match Inv: Invx Price Variance Dr 9127.00, Currency Balancing Cr 9127.00 (@1.8254= (16.51-14.68)

Here the Match Inv should credit 'Not invoiced Receipts' a/c

Now see the below example without changing the default account of inventory clearing to not invoiced receipts

Return to Vendor : Not invoiced Receipts Dr 82527.00, Product Asset Cr 82527.00
Invoice Vendor: A/c Payable Dr 73400, Product Inventory clearing Cr 73400
Matched Invoice: Product Inventory Clearing Dr 73400, Invoice Price Variance Dr 9127.00, Not Invoiced Receipts Cr 82527.00

I hope from above example, this can be fixed . Am I in the right direction

Kindly give your thoughts

Thanks
Johnson