Created Exchange rate issue on payment entry for Purchase Order / Invoice · Issue #7040 · frappe/erpnext · GitHub regarding multi-currency multiple payment issue - has others experienced the same and any workarounds at present until this can be fixed up?
No one has come across this previously??
Quite a significant issue when dealing with multiple payments and exchange rates.
Scenario - Initial deposit made on purchase order, followed by payment / final payment at later date
-PO is raised to supplier with exchange rate auto populated
-Deposit is made based on pro-forma invoice reflecting the exchange rate in PO
-Invoice is received from supplier week later
-Create Purchase Invoice and either set / use auto added exchange rate at that time - updating the exchange rate alters the currency converted total for the entire Purchase Invoice
Issue is seen when exchange rate changes and causes the currency converted total to be calculated on the new exchange rate for entire order and not just the final payment. Further payments may also be made reflecting different exchange rates.
Example
Initial payment is made against PO with exchange rate of 1.3518
Final payment is made against the Purchase Invoice with exchange rate now changed to 1.5000. You will see the Grand Total has been set based on the new exchange rate, which then changes out how much is actually outstanding.
Hello,
Thanks for elaborating your query.
In-case of international sale/purchase, this scenario will be common. The difference in the amount caused due to exchange rate fluctuation should be booked in the Exchange Gain/Loss account.
https://frappe.github.io/erpnext/user/manual/en/accounts/articles/manage-foreign-exchange-difference
In the Payment Entry, you can add Foreign Exchange Gain/Loss account in the Deductions and Loss table.
https://frappe.github.io/erpnext/user/manual/en/accounts/payment-entry (check point 5)
Hope this helps.
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