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the reason for system computing the EXCHANGE GAIN is due to change in exchange rates between the Invoice Stage and the Receipt Stage ...
At Invoice Stage ..
4950 AUD = 4760 USD ...(1.03991)
At Receipt Stage ..
4950 AUD = 4855 USD ... (1.019567)
When the exchange rates are different(more or less) between Invoice stage and Receipt stage, the accounting entries (debit and Credits) will not balance unless the difference is posted to another account, in this case it is Exchange Gain Account ...
Since it the way of accounting, modifying the logic is not possible ... you can uncheck the Exchange Gain Loss Journal Line type from the Subledger Accounting Method configuration, which would leave the journal entry unbalanced causing issues during create accounting execution and period close process .....
If you want the account code combination used for recording the Exchange Gain/Loss that can be achieved by definition of an Account Derivation Rule as an workaround ....
Thank you for looking into this case.
Of course if the Invoice was in foreign currency, there have to be a Gain/Loss line in the Primary Ledger.
But provided that in the Primary Ledger for NON-foreign currency invoice there is no FX lines, we don’t need such in the Secondary Ledger too. It’s a quite strange requirement, given the fact that the Receivable account balance will NOT be closed for this Invoice in the Sec. Ledger:
Dr: (Invoice) 4760.00$ and Cr: (Receipt) 4855.00$
So on the receipt I need the following acc. Entries for the Sec. Ledger (USD)
Dr: Cash 4855.00$
Cr: Receivable 4855.00$
It is normal to have such functional behavior, provided that for the similar case in Payables there is NO FX line. See the example with AP Invoice in Sec. Ledger (USD):
Invoice GL date: 19-Dec-2012
Dr: Item Expense 4500.00 AUD / 4725.59$
Dr: Recoverable Tax 450.00 AUD / 472.56$
Cr: Liability 4950.00 AUD / 5198.15$
Payment Gl date: 20-Dec-2012
Dr: Liability 4950.00 AUD / 5184.46$
Cr: Cash 4950.00 AUD / 5184.46$
Fully balanced acc. entries, while the Liability account is definitely not closed from the both GL entries, which is accepted for the Secondary Ledger.
Hope this clears a bit more the case. I’ll appreciate any useful suggestions.
Of course the using “special” account code combination for recording the FX Gain/Loss in Sec. Ledger in the Account Derivation Rule as an workaround is a good option, if there isn’t any other.
Thanks and regards
i am still looking in to it .... i am just replicating this case in my environment and making few modifications on SLA and testing the results in Trial and Error method ...
I would definitely comeback once i am done with my testing ....and share the results for every one ....