Another look at "Creditor Control Account discrepancy - Foreign Currency"

Accounting
1

Credit Control Account discrepancy - Foreign Currency After manually entering the discrepany by way of a journal, I thought that the problem had been fixed, but when doing a Historical Creditor Report https://******.quickfile.co.uk/reports/historicalinvoices?&type=sup the invoice was still appearing even though showing “PAID”. QuickFile had identified the 1p discrepancy.

Journal entry deleted, and a seperate Invoice for the first payment (deposit) raised and allocated to “Prepayments” and the other Invoice updated with an additional line with the “Prepayments” credited back. This enabled the two payments to equal the two invoices and so the discrepancy disappeared and the paid invoice no longer reported on the Historical Creditor Report.

Another paid invoice appeared in the Historical Creditor Report, this was for a single transaction, but again a 1p discrepancy in Creditor Control. Invoice 233,00€ @ 1.130190 = £206.16) but the payment was 233.00€ @ 1.130245 = £206.15. The use of four decimel place exchange rate 1.1302 does not allow for the invoice to be raised to match the payment.

The payment has been entered to match the invoice and an additional line in the bank account to reconcile the bank balance has been entered “Currency Gain/Loss for purchase #QF02924” and TAGGED to “Something else not on this list” and allocated to N/L used for the purchase. So another paid invoice that was reported in Historical Creditor Report no longer reported.

2

Hi @alan_mcbrien

We did investigate this previously, and put a fix in place relating to the debtor / creditor report (the report at the link you provided).

If I’ve understood correctly, you’ve tagged an invoice as paid in full (233,00€), but there’s a discrepancy caused as the exchange rate changed. Is this invoice tagged correctly and showing correctly (e.g. paid in full)?

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Yes, the invoice was paid down from the the purchase ledger and not from the bank because it is not possible to tag an invoice as paid from the bank account for a foreign currency. If this facility to tag foreign currency invoices from the bank was available this would be much better. The discrepancy occurred because QF cannot calculate invoices over 230,00€ to the exact payment, sometimes there occurs a discrepancy.