Exchange Difference calculate in original amount

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Posted on by Rolando Gabriel Veron

Hello everyone,

I'm working with a customer who did the following:

- Posted an Invoice on may 2020 in EUR (with functional currency USD)

- Posted a credit memo on december 2020 in EUR (with a different exchange rate).

When they try to apply both documents through vendor movements, it calculates exchange differences in functinal amount and original amount (it creates a pending amount in EUR).

If I try to apply them using general journal, it doesn't calculate any exchange difference in original amount. Only calculates the exchange difference originated by using 2 exchange rates (one in the invoice and one in the credit memo).

Could anyone help me understanding this procedure?

Thank you.

Regards

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Rolando,

Each document will calculate check what Exchange Rate it uses at time of posting. You noted you have 2 different rates, but the EUR stayed the same. That is logical since you posted 2 separate documents using 2 different rates to USD. The 2 documents will not 100% match and therefore result in an exchange rate difference. May I recommend that when you want to reverse the entire invoice you can update the document Exchange Rate to match the one used by clicking the 3 dots next to the Currency Code.

Since you have posted the documents, I would reverse the Credit Memo (Correct) and then process the same document with the same Exchange Rate that the Invoice used so the 2 documents can be applied-to. You can also, in the Credit Memo, enter the Applies-to No. so it self-applies.

Hope this helps.

Thanks,

Steve

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