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Hi Experts,
Can anybody help me to solve this issue,
I want to apply a payment in AED against an invoice in KWD, but functional currency is USD. I am getting a message that Only documents using funcitonal currency or originating from currency KWD can be applied. Is there any other work around solution or setup issue???.
Regards.
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I am probably misunderstanding you regarding CBM, but I think there may be more steps to CBM. I do not believe that CBM will clear the A/P subledger invoice. I am unaware of the ability to apply a CBM entry to another subleger.
I clear these issues using CBM, but using the following method:
1) In A/P, I enter a credit memo and offset the credit to a clearing account. In your example, I would enter a credit in KWD. The system will calc the USD equivalent and put the USD into the clearing account.
2) Apply the credit memo against the invoice to clear out the subledger which will also record the gain/loss.
3) At the CBM, you can enter the AED transaction by using the withdrawl (or decrease adjustment) type and key in the AED amount withdrawn by the bank. The entry will reflect the USD equivalent amount. Offset this entry to the same clearing account. I usually put a note on this entry to explain why I am making the entry to the cashbook (ie, that I cannot enter the amount in the A/P module because it cannot handle the triagulation). You can now reconcile your bank account because the AED amount withdrawn will be reflected.
4) The two entries will most likely create a USD balance in the clearning account. Create a manual JE to clear this amount to the foreign exchange gain/loss account. I also put a note on the manual JE detailing why the entry is being made.
Not fun, but it works and it is the only way that I know to clear the bank and the A/P subledgers.
Best regards,
Dale
Yes, you could install Cash Book Management to resolve this. In CBM a transaction can have three currencies. 1. Originating currency 2.Cashbook currency 3. Functional currency.
A transaction in Originating currency gets converted to the Cashbook currency based on rates you maintain in the Cashbook. The Cashbook currency then gets converted to the Functional currency based on rates you mantain in GP standard FX tables.
Because the transaction gets converted to the Cashbook currency, which is only one step away from Functional, you will be able to apply the transaction to the Invoice - but not at time of entry - only after it is posted (I believe!!).
Ian.
Unfortunately not. GP cannot tri-angulate currencies. (You would need to be able to maintain a cross currency FX rate, which isn't possible).
You could reverse the transaction and enter it in the originating currency.
You will then be able to apply the multicurrency payment.
Ian.
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