Bank Rec - NAV bug? Need help.

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Hello Everyone,

I came across and Bank Rec issue today, and not sure if I am doing something wrong or there is a bug in NAV 2013 R2.

The problem is this. The base currency of the company is CAD and we are doing CAD Bank Rec. The 1 USD = 1.2 CAD. We are posting an adjustment of 100,000 and as a balancing account choose USD Bank. Now, what system does, it converts the USD 100,000 to CAD 120,000 in the CAD Bank Sub-ledger and CAD Bank G/L account, which is correct. But on the Bank Rec it treats the 100,000 as CAD!! I have never seen this before and not sure why NAV does that. I repeated the same in the Cronus company and the result was same. Here is the screenshot with details:

And here is the same amount in CAD Bank G/L and CAD Bank Sub-Ledger:

and:

What happens at the end is that NAV “forces” us to do the Bank Rec with incorrect Bank Statement amount (the real Balance on the statement should have been CAD 109,000, not CAD 129,000 that we have on the above Bank Rec) and creates lots of problems. As you can see, the Feb 28, 2015 ending CAD G/L Balance is CAD 109,000:

Do you know why this happens and how to fix the problem? Let me know if you need more details. Thank you!

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Jens Glathe 6,092 on at

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Hi Tigran,

the screenshots are not visible. Aside from this: When you post in the G/L with a balancing bank account that has USD as currency code set, all amounts will be treated as USD. You can't change it to something else without an error message.

Bank reconciliation, however, is a different table. And the NA localization has additional functionality in it, also with currency code on the lines. Unfortunately, I'm not familiar with this functionality, but what you describe sounds like it's not respecting the bank currency code, but posts against this bank. Which shoudn't be possible when the bank is USD. Is it possible that you don't have USD set as the currency code in the bank account card?

with best regards

Jens

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Community Member on at

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Hi Jens,

Thanks for the prompt response.

Sorry for the images - when I was making the post the images were visible, I guess they become invisible after the post.

Here is the link to the document with images:

www.dropbox.com/.../Bank%20Rec%20Problem.docx

The USD is an available currency and there is a Bank Account with that currency. The problem can be easily replicated. Just start any Bank Rec of the Base Currency Bank account. Then enter an adjustment with any foreign currency with a relevant bank account, and you will see that the Bank Rec Adjustment displays incorrect amount.

I tested the issue today on NAV 2015, but the problem was same.

I understand that what I am showing is not the correct way of the entry, but I can't understand how NAV would allow this and would show incorrect amount. I can only imagine how many people were unknowingly "forced" to post Bank Rec with an incorrect amount. Thank you.

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jack-89 on at

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This could be bug related issue.

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Community Member on at

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That would be strange to have such an obvious bug unresolved for such a long time.

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Community Member on at

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Hi

This is not a bug. It is happening because there is only ONE currency on the journal line and this is taken from the balance account since this is the last information you put in, so when you have to post something in 2 currencies at the same time you will have to do it in 2 lines.

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Jens Glathe 6,092 on at

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Hi Tigran,

well, I did a test run on NAV2015 CU3 NA, too, but I am completely unable to force a different currency than the one of the bank account in the bank acc. reconciliation. It's behaving as it should.

I have read the document you provided, and for me it looks like it should, except for the G/L. Is it possible that you do have an additional posting on account 11401? Best practice is to have G/L accounts set to "no direct posting" when they are posted via bank account only.

with best regards

Jens

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Community Member on at

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Hi Jens,

Direct Posting is disabled.

In your example the only difference from mine is that as "Bal. Account No." you are using "WWB-USD", which is a USD bank, similar to the one you are reconciling. In my example, the bank that is being reconciled is CAD, while "Bal. Account No." is a USD bank. I don't select currency as USD, it comes up as soon as I select a USD (foreign currency) bank as a "Bal. Account No." in the adjustment line.

Thank you.

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Community Member on at

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Thanks for the answer, Benny.

I am not saying that the way I demonstrate is the right way. What I am saying is if someone does the adjustment this way, NAV wouldn't prompt to make a change and will force you to post "incorrect" Bank Rec.

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Jens Glathe 6,092 on at

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Hi Tigran,

to make sure, I have created a new CRONUS NA database from the NAV2015 CU3 disk. This wasn't visible in my previous screenshot, but the WWB-USD in Cronus USA is set as a CAD bank. Yes, I know, this really makes sense. This way USD (as LCY) and CAD (as bank currency) are exchanged, but it's about the same scenario you're describing.

In bank reconciliation, you first have to select which bank is being reconciled. If the bank record has a currency code set, it is fixed for the whole reconciliation page (although nowhere shown). As it is, it appears to be assumed that your bank statement is also in this currency, with no exception (it should be). Even when you send or receive a payment in a different currency than the bank account is, the bank will convert it to the account currency, giving an exchange rate and fees for conversion, usually. So... we could wish for a more clear setup and the statement currency being visible, but it appears to be working as it should. As I wrote, I couldn't change the currency to something else in the generated G/L journal without getting an error message directly or during posting. NAV will (in this case) always post CAD to the bank account.

Your screenshots look a little different than my bank account page, though. Do you have an Add-On in use?

And, if you need more control over currencies, have you considered using our Add-On "Plexada Transaction Currency"? This makes currency handling far more transparent, as it records the transaction currency in the G/L and in the VAT entries. It is also available for NAV2013R2 and NAV2015.

with best regards

Jens

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Jens Glathe 6,092 on at

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Hi Tigran,

I replied to you on dynamicsuser.net, too: dynamicsuser.net/.../455456.aspx I'll see if I can find a workable solution for this bug.

with best regards

Jens

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