Dynamics Community Forum Thread Details

Exchange Difference calculate in original amount

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

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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