Problem: When allocating an advance payment (Offset Prepayment) , a currency exchange difference is being calculated.
The conversion rate used in the Invoice does not match the rate mentioned in the Bank Receipt.
This should not happen, as exchange rate differences are not generated when allocating advance payments.
Possible Causes:
- Documents were edited after the month-end closing procedure was completed.
- A currency rate correction was made after the original transaction date.
Example
A customer made an advance payment by Bank Receipt in the amount of 9 406.05 USD, at the exchange rate 3.6725 AED.
Part of this prepayment was allocated to Invoice No. 1.
- The remaining part in the amount 685.93 is to be allocated to Invoice No. 2.
However, when allocating the second part of the prepayment to Invoice No. 2, a currency exchange difference was calculated.
Correct calculation Amount (AED) = 685.93 (amount usd) * 3.6725 (currency rate) = 2 519.08 and Amount (AED) in the system reflected as 2 547. 74
Exchange rate differences 2 547.74 - 2 519.08= 28.66
- Cancel month-end closing. Start from the latest closed month and go back to the month where the error occurred.
- Unpost all invoices that contain the prepayment allocation related to the Bank Receipt.
- Delete the prepayment allocations from all affected invoices. Select the document (Bank Receipt) in the dialog box Offset Prepayment and right-click to delete the document from allocation.
4. Re-allcate the prepayments in the correct order - First to Invoice No. 1, then to Invoice No. 2.
5. Execute Month - End Closing.