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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / vendor payables issue
Microsoft Dynamics GP (Archived)

vendor payables issue

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Posted on by Rashed Alhakimi 2,095

Dear All , I am using MS GP 10.0 and our finanace departement has requested from me a vendor payable report to show the opening and closing balace for range date of time , i reach into point where the report 80% is correct . the problem i faced is we are using USD as functional currency and YR and ERUO as another currency the YR invoices are entered into the system with for example (10000YR) = $50 USD the exchange rate for this is :1$ = 200 YR so when we do the partial payment against this invoice in two payments for example : 5000 YR = 24USD with exchange rate of $1=207 YR and 2nd payment 5000YR = 23USD with exchange of 214 for example now we reach into the total payment amount is 10000YR which is equal to the invoice amount but in the USD the amount of invoice is 50USD and total payment is 47USD which is less than the invoice amount means the vendor still have payble of 3$ now i am talking about small transaction but in big amounts differenet comes upto 4000USD etc .

So may i knew how i can solve this problem ? is it finance mistake or there should be some way to solve this problem .

Note all the transactions in the finance dep they are using average rate is it correct or they should use sell and buy option in the exchange rate selection ?

Appriciates your assistant .

 

Thank you and B. Regards

 

Rashed

 

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  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Re: Re: Re: vendor payables issue

    Nice one Richard...Auditors should always be made sweat a bit!!

  • Richard Whaley Profile Picture
    Richard Whaley 25,195 on at
    Re: Re: Re: vendor payables issue

    While Ian's adjustment will certainly clear out the current balances properly, the accounting department needs to correct their procedure.

    The issue is the float in the Fx.  Between the first of the month when the vendor invocies are revalued and the time when they are paid, the exchange rate changes.  I have my customers perform a revaluation just prior to posting the payment information.

    For that matter, most of my customers go to an exchange firm to wire overseas payment.  They tell the firm (AMX) how many Yen or Euros to pay the vendor and a wire transfer is performed.  AMX then tells the customer how many dollars (in our case) was taken out of their account and what exchange rate was used in the payment.  We set that exchange rate in place, revalue the invoice(s) paid, and enter the payment as a manual check/wire transfer.  EVERYTHING matches this way and there is no remaining balance for the vendor.

    As for your auditors report, show them both Functional Currency and Originating Currency and the then current exchange rate and let them sweat.  Your report will be correct and they will have to explain that they do know understand MC!

     

  • Rashed Alhakimi Profile Picture
    Rashed Alhakimi 2,095 on at
    Re: Re: vendor payables issue

    Dear Ian ,

     

    Thank you for your reply ,

    well as you mentioned in my report there is some thing which is i am getting the functional currency not the orginal currency which might be the reason for such problem nw the CFO told me to redesign the report that displays the amounts in YR and USD with open transactions only .

    so i will try to make that and get back to you , but what do you suggest me to select when i make an invoice in YR and select the exchange rate (Average , Buy or sell )?

    Regards

    Rashed

     

     

     

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: vendor payables issue

    Hi,

    Firstly, whether you are using the Average / buy / sell exchange rate types is not relevant to your current issue. What is happening here is standard realised FX gain or loss - and GP is correctly calculating this.

    1. GP knows that you owe 10000 YR. (and this just happens to convert to 50 USD at a certain date).
    2. GP knows you paid 10000YR to fully clear this debt - and this just happened to cost you 47 USD to buy.
    3. So GP correctly calculates that you made an FX gain.

    The standard functionality handles and accounts for this correctly. The issue has to be with your report and how you are handling documents. Once the invoice is fully paid, it will transfer to history, so if its in history then its outstanding balance will be zero, regardless of any currency fluctuations.

    In cases such as the above, you can confidently calculate the 3 USD as a balancing figure ...and show this as an realised FX gain or loss.

    Hope this helps. The issue is most likely with how you are displaying data in the report. Let us know how you get on.

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