Hi. An issue that we have noticed when it comes to connecting Journal Entries as prepayments (in a multi-currency environment) is that if you connect the Journal Entry as an advance in Purchase Invoices or Sales Invoices, the entire value of the invoice is posted as a gain/loss on exchange, as the system pulls an exchange rate of 0 for the advance. Using the Payment Reconciliation Tool works if the exchange rates match, however if the exchange rates differ, no gain/loss on exchange is posted. This brings us to using a Journal Entry to facilitate the reconciliation, which works for Sales Invoices, albeit you have to negative credit the entry for the payment, see below:
This method however does not work for the purchases side as when you try to do a negative debit (which you are forced to do to put in a credit against a referenced document on a payable account). The problem that we face when doing that it that it comes up with the following error message:
Due to the way that the validation is handled you can not do a negative debit in Journal Entries. The final option that is left to us is to cancel and amend the original Journal Entry in order to link the Invoice to the amount. This becomes highly tedious if it is a massive prepayment intended to be linked to several invoices.
Has anybody else encountered this issue, if so what is your solution?