Currency Balancing entry during Vendor Return

2012-04-25
2013-03-07
  • Johnson Joseph
    Johnson Joseph
    2012-04-25

    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

     
  • Johnson Joseph
    Johnson Joseph
    2012-04-26

    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

     
  • Michael McKay
    Michael McKay
    2012-04-27

    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.

     
  • Johnson Joseph
    Johnson Joseph
    2012-04-27

    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