[CK-Ledger-users] Re: CK-ledger

[C K Wu <ck...@ho...>]

Hi, Joseph,

I think the gest of the matter is while the ledger reports have to be
in CAD, you need to retain the original USD amount for your other
operational processing, say bank reconciliation, reference to past
billed amount, etc, etc...

Referring to your example,

Example: we have USD [Bank] Account, we purchased inventory in the amount of
100USD and paid for this inventory in USD from USD [Bank] Account.

Assumption:  100USD = 130CAD

Existingly, CK-Ledger will generate the following journals,

For the vendor invoice,
Dr	Inventory	130(CAD)
Cr	A/P		130(CAD)

For the payment,
Dr	A/P		130(CAD)
Cr	Bank		130(CAD)


Ideally, to retain the original foreign currency (FC) amount, there would be a separate set of journals being fired off in parallel,

For the vendor invoice,
Dr	Inventory, USD		100(USD)
Cr	A/P, USD		100(USD)

For the payment,
Dr	A/P, USD		100(USD)
Cr	Bank, USD		100(USD)

Thus, the original set of account will be used for ledger reporting, while the
[xxx, USD] accounts will provide info for your other processing that requires 
the original FC amount.

This is the way some traditional accounting packages handle FC.  If this solves
your problem, it could be scheduled as enhancement for a future release.  But,
I don't know when it will be ready, given the long list of future enhancements
already on hand.

Cheers,
CK



Joseph wrote:

>Hi Wu,
>
>Thank you for your reply.
>
>[snip]
>  
>
>>Presumably, you have already got a working phpgroupware/ck-ledger installed.
>>If so, you are probably missing the very last step, creation of the test 
>>data.  Test data
>>can be created via Ledger Admin -> admin/setup.  If you don't see the 
>>menu choice,
>>just re-login as a phpgroupware admin user, the menu choice will then be 
>>available.
>>I must stress that they are test data only.  At the end of the day, you 
>>would need to
>>input your own account data to reflect your company's own chart of account.
>>    
>>
>
>No, I wasn't able to make it to work yet.  I'll have to make few
>snapshot and email it to you so you will not how to finish it.
>I got the Graphical part working, I can log-in but when I it seems to me
>the MySQL database is not fully or correctly populated as I get an error
>message when I try to create an order or post anything into and account.
>
>[snip]
>  
>
>>Dieter is right in maintaining the ledger in a single currency.  AFAIK, most
>>country's GAAP would require a company to publish its accounts in the local
>>currency.  Your concern, (correct me if I am wrong), is the provision of 
>>tools
>>by the software to allow foreign currency operations prior to the booking of
>>journals to the ledger.  With CK-Ledger, the original currency and amount
>>of foreign invoices, po, so, quotations are maintained as primary source 
>>data.
>>[btw, I think SQL-Ledger is doing the same].  Therefore, I think this is
>>really just a matter of printout format to suit your foreign currency 
>>operation.
>>    
>>
>
>Yes, you are right the accounts need to be in single currency but the
>Government is not imposing any requirements how the accounts are lay-out
>or how I view them.  
>The Government want to see my books in balance on the paper only.
>
>I've talked to Dieter about SQL-Ledger about this problem (we are from
>the same city, Edmonton) and he has mentioned to me that it would
>require extensive modification.
>
>I'll try to illustrate you the problem.  
>You are correct most Countries (if not all) require business post the
>accounts in their original currency.   However, they don't care how it
>is structure as long as I can balance the books.
>
>Like typical International business, we buy our inventory in USD and we
>keep the inventory in USD, as it is too much problem to convert it to
>domestic currency (Canadian Dollars as it fluctuate too much).  So we
>sell our inventory most of the time in USD even to Canadian customers;
>but if it is a credit card transaction, it needs to be converted to
>Canadian Dollars.
>
>Dieter SQL-Ledger work very good everything is converted automatically
>to Canadian Dollar including the foreign accounts (USD accounts) and
>this is the major problem; the way he shows them in the books.
>
>Example: we have USD Account, we purchased inventory in the amount of
>100USD and paid for this inventory in USD from USD Account.  And because
>we it was automatically converted to CAD (Canadian Dollars) the USD
>account is showing 130.00CAD balance.
>100.00  (inventory Invoice)
> 30.00  (Exchange amount)
>
>Logically it makes sense but it is not practical from day to day
>operation point of view.  
>Our statement from the USD Bank Account comes in USD amount.  The USD
>account is showing 130.00 balance so it makes it hard to see how much is
>on your account.  It is even harder to balance it.
>
>If I go to Reconcile the account I see the amount:
>100.00CAD  (inventory Invoice)
> 30.00CAD  (Exchange amount)
>
>and one check Box to check it off; that makes sense.  So I check it off
>and reconcile the account 130.00
>The next month statement comes in and I need to reconcile the account
>again.  However, my opening balance is showing 130.00.  This is WRONG. 
>It should be 100.00 opening balance.  
>
>The solution to this problem is to store the Exchange portion of the
>transaction in the Separate Account.  For example if my USD account is
>Called: "ATB Financial USD" the exchange account could be called "ATB
>Financial USD - Exchange".  The customer should not be able to edit any
>transaction or delete from this account because the account is only to
>keep the books in balance with domestic currency, in this case Canadian
>Dollars.  
>In addition this account "ATB Financial USD - Exchange" could be hidden
>from view as user don't need to see it at all (just as an option).  It
>is only to print the "Balance Sheet" and keep the books in balance.
>
>There are other minor problems with SQL-Ledger but Dieter was able to
>address them right away.  It pertained purchasing Inventory in USD and
>storing the latest purchase price.  The SQL-Ledger was storing converted
>amount in Canadian Dollar.  So when I went to make then another Purchase
>Order, the CAD was showing as latest purchase price, and this is not
>correct.  But this update feature can be turn OFF so it is not a big
>deal.
>
>
>  
>
>>Currently, CK-Ledger's customer statement looks something like,
>>
>>Bal b/f                            
>>CAD                                                                      100
>>Bal b/f                            
>>USD                                                                      200
>>
>>invoice settled                CAD                      20
>>invoice settled                 USD                      30
>>
>>Bal c/f                              
>>CAD                                                                      80
>>Bal c/f                               
>>USD                                                                     170
>>
>>If you need some other report with different format or layout, please send
>>me a email with a brief description of the format/layout.  I'll try to 
>>schedule
>>it for a future release.
>>    
>>
>
>I'll try to work on installation tomorrow so maybe I can put it to a
>test.
>
>[snip]
>  
>
>>Use the browser print function to output the invoice, order, etc.   
>>There is a
>>line (explaining this ) at the page bottom just above the row of buttons.
>>
>>Cheers,
>>CK
>>
>>PS - I am sending a copy of this email to 
>>ck-...@li...,
>>so the others are aware of current development.
>>    
>>
>
>OK, I will subscribe tomorrow to ck-...@li...
>mailing list.  
>
>I would like to help you to make that International function worked
>correctly in CK-Ledger so it is done right.  
>
>  
>