Exact Globe

Release 390: Exchange Rate Always Based on Advance Payment Upon Matching

Introduction

With the implementation of Advance invoice functionality, user is required to match the advance payment against the advance invoice term generated, in order to generate the final invoice. In case when the sales order and relevant advance payment against the certain order term are in foreign currency the exchange rate differences appear when the rate of the exchange of advance payment and rate of exchange on order date are different. This contradicts with basic financial principals regarding the rate of exchange of the foreign currency amount in Tax document (see release note Batch 350: Advance invoice).

To avoid any inconsistency in the data, the invoice that generated upon matching of advance payment and advance invoice term in foreign currency must receive the rate of exchange that is entered in advanced payment entry.

Menu path

Order/Entries/Sales orders

What has been changed

In release 390, a new logic has been applied during advance invoice matching. Upon matching, the exchange rate of the advance payment, will always be leading for the exchange rate of the advance invoice. This eliminates the exchange rate differences between the entry of advance payment and advance invoice term.   

This changed is applicable to the following legislations:

Examples:

1. Define the currency exchange rate for USD as following:

2.    Create a sales order on date 01/10/2007 with order amount of 100 USD.

3.    Create an Advance invoice of 50 USD.

4.    At cash flow menu path, create a payment of 50 USD with payment date on 05/10/2007.

5.    Back to sales order Condition screen. Click the Match button, select the advance payment and generate invoice for it.

6.    At invoice history, open the generated invoice. Notice the exchange rate is retrieved based on the advance payment's exchange rate.

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