I have a Sales Invoice with a value of $100.04.
Now I have received $100.- but do not want to carry the leftover fraction of 0.04 with me (and practically take the loss on my end)
I think I need a Write Off Account to do that (can’t submit the Payment Entry of $100 on the invoice as a $100.4 without that).
What’s the best practice to do that? I think potentially you might even need 2 of those. One where you put small losses and other you might need for fractures gained (i.e. Sales Invoice $99.98, payment received $100)
You can write off the fraction amount while booking Payment Entry.
thanks for your feedback and sorry … I probably was not specific enough.
It’s pretty obvious how it’s being done (as shown in the picture you posted), my question is more about what kind of account do people use to Write Off those things (expense account?, Equity account? …?).
So it’s more a best accounting practice question.
any pointers in that regard?
the default ERPNext CoA has a Write Off Account (an expense account). That’s what I am using now.
Also there is a default Exchange Gain/Loss Account which has to be set in >Setup >Company
Like this it work like a charm
To manage foreign currency difference, you can update this Account in Company master.
Refer below help link for more details.
thanks, in my scenario there’s only local currency for now
I did as mentioned to do write off but the write off amount is not getting allocated to sales invoice amount. Is it correct ?