Best Practice to Handle Multi-currency Supplier and Customer

ERPNext Accounting
1

What is the best practice for managing multi currency supplier or customer mapped against the payable or receivables respectively.

The documentation is quite explanatory at https://erpnext.org/docs/user/manual/en/accounts/multi-currency-accounting ; however, question is should you have two account heads for the two currencies. For instance,

Scenario 1

Payable:

  1. creditor-USD-demo_company
  2. creditor-GBP-demo_company

Supplier:

  1. SupplierA-USD - mapped to the account head creditor-USD-demo_company
  2. SupplierA-GBP - mapped to the account head creditor-GBP-demo_company

Scenario 2
Payable:

  1. creditor-USD-demo_company

Supplier:

  1. SupplierA-USD - mapped to the account head creditor-USD-demo_company
  2. SupplierA-GBP - mapped to the account head creditor-USD-demo_company using the currency conversion in the system

@OmarJaber

2

Scenario 1: Not possible. For a Supplier, you can maintain balance in one currency only.

Scenario 2: Same as above. Perhaps you should create two separate Supplier record and set Accounting Ledger as required.

3

We are facing same question and had discussed this in “ERPNext Accounts Working Group” last week. I am finding out that by design a transaction cannot be passed with multiple currency receivable account for single customer/supplier.

The final effect is on the unrelialized exchange gain and loss.

Recording realized exchange gain and loss is straight forward.

WIthin 2 weeks we will have something tangible that replaces use of existing Exchange Rate Revaluation…

For us the base currency is the same as receivable accounts currency and the transaction (Sales Invoice/Purchase Invoice) is in different currency.

4

See the example transactions we need to handle.

image
image1841×418 28.6 KB

We are attempting to create a separate currency doctype and then create make unreliased gain/loss journals from a button on that rate screen based on the exchange rates indicated.

The idea is to have unrealized exchange gain/loss journals per invoice level.

Will keep publishing the screenshots here.

If it is appealing to others, then we can put in more efforts to make it contribution-worthy.

5

@federico_calvo @Nahuel_Nso You guys are working in this same sort of problem-space in Argentina, right?

6

Yes wherever inflation occurs [Feature Request] Sales Order from Quotation with a different currency

7

Just trying to connect people I see trying to solve the same problem, that way these kinds of things make it into the core rather than the languishing.

5 Likes
8

This seems like a business specific fix rather than a generalized solution for all to share.

What happened to allowing multiple accounts to one party for different currencies?

9

@tmatteson @clarkej I made a pull request (#16393) based in the feature request created by @federico_calvo and it has been merged today to the hotfix branch. It allows the creation of a sales order from a quotation using a different currency. When you do so you can track the sales order back to the quotation, and then back to everything related to it.

10

@Nahuel_Nso, that’s awesome! For feedback from the Accounts working group , feel free to tag any of us on github issues relating to the module. All of the people in this thread are involved in some way.

1 Like
11

https://discuss.frappe.io/t/unrealized-exchange-gain-and-loss-per-sales-purchase-invoice/

Solution currently being worked upon for the problem mentioned above.