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Procedure documentationAmount Differences - Procedure: RU Locate this document in the navigation structure

 

This task explains how to work with conventional units and how to calculate amount differences.

Procedure

  1. First, you have to create a new currency that will be defined as a Conventional Unit. Choose   Administration   Setup   General Ledger   Define Currencies   and create a new currency. Set the flag Is a Conventional Unit as active.

    For more information, see Define Currencies: Russia.

  2. Next, you can issue Invoices (and its base or target marketing documents) in the defined conventional units. Any business partner participating in this type of transactions must be set as Multi-currency.

  3. All marketing document you issue should use exchange rate defined on the document level or on the level of the conventional unit or its base unit. According to its exchange rate, the marketing document will be posted to the system with the appropriate value in the Local Currency.

  4. At the time of actual payment, you specify, on the appropriate line representing the invoice issued in conventional units, the value of Total Payment in conventional units the business partner (or you) is going to pay. In case of a full payment, this field stays unchanged, in case of a partial payment, you lower the value accordingly.

  5. In the payment means window, you select the payment type and the currency the actual payment is going to be in (most likely in local currency). Next, you specify the amount to be paid, in the selected currency.

    Due to the fact that you specified the amount to be paid in the conventional unit and the actual amount paid in the selected currency, the system calculates the exchange rated between these two currencies for this payment.

  6. Next, you run the Amount Differences report (for more information, see Amount Differences - Selection Criteria: RU), which is going to calculate the amount differences.

  7. Depending on the calculated amount differences and their relation to the transaction itself (receivables or payables), and depending on your selection of the transactions, the Amount Differences report will perform any necessary postings to the General Ledger.

Remarks

If you are using the On Shipment taxation method, amount differences influence VAT liabilities reported in the sales ledger. You have to post a manual journal entry to correct the VAT accordingly and then, if required, create a tax invoice based on this journal entry to register this change within the appropriate ledger.