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[Zvika Rimalt]

We have an AX out of the box behavior that is causing us trouble.

If you create a project invoice in foreign currency (=not the accounting currency) on one month, and then you want to reverse that invoice in a following month, you get an issue with the reversal amounts as posted to the GL (and to the tax ledger)

[for example – USD invoice, in a EUR based company

Original invoice was USD 1,000 –> EUR 800

The reversal is USD -1,000 –> EUR -850]

AX uses for the reversal the exchange rate in the time of the reversal, and not the exchange rate of the original invoice.

As a result we are left with unequal amounts in accounting currency on the revenue account#

Worse off – when we need to report our total sales/purchases and VAT amount, they would show up as if we had a sales balance with the client (while in fact, we have sold 0 to them)

Anyone encountered this issue? How to address it?

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Zvika Rimalt
Business Analyst
Vancouver BC Canada
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[Christian Hetu]

Hi Zvika,

              I know exactly what you’re talking about because we had the same issue. In fact there are multiple out of the box problems with foreign currency, indirect cost and intercompany transactions related to project module. You can’t imagine the number of cases we had to solve by ourself related to those areas because up to now there are no hotfix available for those problems. In addition to the problem you underlined we also had problems with some foreign currency invoices that we where not able to reverse because of a balance error at posting. After some analysis I realized that some GL entries were using the posting date of the reversal to select the exchange rate and some other the date of the reversal and other the transaction date of each entries… Finally, for our company, we recognize the revenu when the transaction (time or expense) is posted, not at invoice posting. So, we had a problem with the fact that the amounts in accounting currency were not the same for the initial posting, the invoicing and the reversing of a transaction…

So, we had to modify by ourself the invoice/reversal posting behavior to always use the transaction date for the exchange rate selection. This way, for each transaction, the same exchange rate is always selected for invoice and/or the reversal and the amounts in accounting currency are always the same.

Sorry for my English, this is not my first language 😉

    

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Christian Hetu
Business Analyst
BBA
Mont-Saint-Hilaire, QC, Canada
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