Posting the cost of products and services at the prepayment rate

If the exchange rate of the purchase document on the date of prepayment differs from the rate on the date of the purchase document posting, an exchange adjustment appears. This amount can be transferred to the cost of purchase automatically.

System Settings

1. Choose the icon, enter General Ledger Setup, and then choose the related link.
2. Go to the Currency Adjustment FastTab.
3. Enable the Capitalize FX on Prepayment option.

Set a value of items or services for purchase with prepayment

The general scenario of setting a cost for the items, fixed assets and services purchased with prepayment in a foreign currency is as follows:

1. Check the system settings that affect costing.
2. Create a prepayment to the vendor in a foreign currency..
3. Change the exchange rate of the currency.
4. Create and post a vendor purchase invoice.
5. Apply the prepayment to the purchase invoice..
6. Currency adjustment is created automatically against the difference between the prepayment and purchase invoice rates.
7. Value entries and G/L entries are created automatically for the currency adjustment amount.

Note

This scenario can be used for purchase of items, services item charges and fixed assets.

To view created value and G/L entries:

1. Choose the icon, enter Vendor Ledger Entries, and then choose the related link.
2. Select an entry.
3. Select an action from Actions > Find Entries.
4. Click on the value in the No. of Entries field in a related line to view value or G/L entries.