Handling supplier invoices which are less then the accrual due to currency gains

Handling supplier invoices which are less then the accrual due to currency gains

to be edited:

Ashwin: check this scenario, incase a supplier sents you an invoice for 1000 USD / 3675 base currency, against a booking order of 400 BD / 3920 base currency (which is already there in the schedule a/c) - now when doing this entry, the balance of the amount I need to manually pass it to the EXLO a/c right? there isnt an automated way for NEOSYS to take this amount to the EXLO a/c as in the payments and receipts right?

_Steve_Neosys: firstly you are not allowed to post into the neosys automatic gain.loss a/c anymore so you have to make another gain/loss account for this posting secondly, as for all journals which are not simply 2 line vouchers - you can create a second line in the journal for the third voucher libne but you asked for automatic

_Steve_Neosys: actually neosys will dispose of (add 3rd/4th journal lines for) small exchange/gain losses if you are authorised but I think only well trained accountants can really handle automatic

Ashwin: but isnt it advisable to make the changes in the schedule in the cost and create a cost invoice? so that we can avoid this entry?

_Steve_Neosys: no - this is a gain loss on currency exchange theoretically and practically billing analysis does not include gain/loss unless you put the gain/loss account as one of the media types and therefore they are obliged to add an analysis code if you bill in xyz and the xyz rate falls when they pay you xyz ... all perfect amount you see ... you STILL have gains and losses because the value of the invoice is LESS than the value of the payment in our base currency - think about it

Sent at 4:35 PM on Thursday _Steve_Neosys: in the xyz example it is often not as bad as it seems if you are also billed in xyz by your supplier and pay him xyz ... you benefit from the drop in the xyz rate too effectively then assuming that you pay your supplier at around the same time as your client pays you (which can be a big if) then you lose out on the drop in xyz exchange rate only on your profit not the whole xyz amount that you billed - since your loss is partially offset by your gain on paying your supplier in xyz after the xyz rate has dropped