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
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.
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.
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
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