Wrong GL payment allocation posting when converting to schema currency

Description

This issue is similar to JIRA
Primary schema=USD, Secondary schema=THB
Accounting Schema: Use Suspense Balancing=N
Accounting Schema: Use Currency Balancing=N

2 customer invoices in currency THB (secondary schema).
Invoice1: DR AR THB 94,160.00
Invoice2: DR AR THB 94,160.00=> OK

System converts and posts to USD-schema
Invoice1: DR AR 2765.85
Invoice2: DR AR 2765.85=> OK

Credit Memo in THB (secondary schema)
CR AR THB 188,320.00
DR Charge THB 188,320.00=> OK

System converts and posts to USD chema
CR AR USD 5,531.71
DR Charge USD 5,531.71=> Rounding difference but OK

Payment Allocation
View Allocation in USD

DR AR USD 2,765.85
DR AR USD 2,765.85
CR AR USD 5531.70 => AR in USD not zero!!

System should post payment allocation in USD:

CR AR 5531.71
DR Realized Loss 0.01

Environment

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Activity

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Michael Powacht
July 24, 2017, 1:53 PM

Sorry Soo Fang,

correction, the allocation posting should of course be

CR AR USD 2,765.85
CR AR USD 2,765.85
DR AR 5531.71
CR Realized Gain 0.01

Soo Fang Lee
July 26, 2017, 6:53 AM
Edited

Hi Michel,
I was able to simulate the issue as you described. It is a rounding issue and I've 2 suggestion to resolve the problem. Please advise.

1. make the currency rate -> 0.02937
2. Accounting Schema: Use Currency Balancing=Y

Note that currency balancing account is usually use for currency rounding issue.

Michael Powacht
July 26, 2017, 7:13 AM

Hi Soo Fang,

I'm not a big fan of currency balancing. If you recall we started out with currency balancing and found other issues, for example situations where 0.01 was posted to A/P and realized gain/loss, which leaves an A/P balance of 0.01 even the invoice was paid in full. So by switching to currency balancing, we are just moving the problem again.

As for the currency rate, are you saying that rounding all currency pairs to 5 decimals should resolve all rounding and posting issues, or will this only work in this particular case?
I'd have no problem doing that.

Please let me know,
Michael

Soo Fang Lee
July 26, 2017, 1:16 PM
Edited

hi Micheal,
I'm not sure it will works for all the scenario and therefore we will need the currency balancing to fall back on. With currency balancing, at least we will know there is rounding issue to resolve when there is balance in it. Also, having the rounding balance in currency balancing account is better than having it in A/P. If there is any pending issue with the currency balancing posting, we need to resolve it.

Michael Powacht
July 26, 2017, 1:58 PM

Thanks Soo Fang, I had currency balancing turned on originally and I turned it off because A/P balances were not zero in alternative schema currency AFTER payment allocation.
This to me is equally bad as the issue above. Before I consider turning on currency balancing again (which of course needs to be done with care and after a proper impact analysis because we already have ongoing transactions), we need to make sure that currency balancing actually works in all scenarios as you suggested.

The first currency balancing issue to be resolved is the one I sent to you and provided feedback last time on Wed. 28/6. After resolving this issue, we can start testing and finding all other loop holes that may exist.

Thanks,
Michael

Assignee

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Reporter

Michael Powacht

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