The following describes which accounting transactions the system creates when you match a supplier’s invoice with a purchase order and there are exchange rate differences. An exchange rate difference will be posted if the exchange rate has been changed since the order was placed. The same currency must be used on both the order and invoice if the system is to create an exchange rate difference posting (transaction type 811). Exchange rate differences are posted in system currency only, which means that transaction type 811 will show a blank posting in transaction currency.
The accounting transaction that the system creates when the purchase order was received in DC1 Distribution is described first, then which accounting transaction the system creates when the matching is completed in DC1 Financials.
Note: This information refers to Match a preliminary invoice with exchange rate differences in DC1 Financials.
Prerequisites DIS
The following items are received on a purchase order in DC1 Distribution:
| Quantity item code STEREO | 100 pcs |
| Purchase price STEREO | £1 500.00 |
| VAT handling percentage | 0% |
| System currency | SEK |
| Exchange rate on purchase order | 10.10 |
Created transactions
The following transactions are created in the Bookkeeping transaction file (SROBTR) when the purchase order is received to stock in DC1 Distribution. Note: The account numbers in the table below are only examples. They have been outlined to make it easier to explain the calculations in the matching routine.
| Transaction type | Description | Amount Debit |
Amount Credit |
Account number in DC1 Financials |
|---|---|---|---|---|
| 901 | Stock value | 1 515 000.00 | C10000 | |
| 930 | Reception from supplier | 1 515 000.00 | E21800 |
Note: For a description of the calculation of the transactions above, see Overview of accounting transactions during goods reception.
Prerequisites FIN
The amounts on the invoice from the supplier are:
| Item code STEREO | £1 500.00 * 100 = £150 000.00 |
| Supplier invoice total | £150 000.00 |
| Exchange rate entered | 8.00 |
When a preliminary invoice is matched with a purchase order (or order lines), the G/L postings entry for A/P documents panel is accessed if the G/L postings panel field in the Document type table for the used document type is set to YES, or if the matched amount did not balance. If the G/L postings panel field is set to NO, then the postings created will be displayed on the printouts generated when the batch is closed or interrupted with list. See Match a preliminary invoice with exchange rate differences for instructions.
Note: These transactions are not created in the Bookkeeping transaction file (SROBTR). If you interrupt the batch, the transactions are updated in the G/L transactions work file (SROTRAC). When you close the batch, the transactions are updated in the G/L transaction file (SROPST) and G/L transaction log file (SROLOGGL).
Calculation
Based on the prerequisites for this example, the first transaction is the amount updated in the Accounts Payable. This is the invoice total. The account number is retrieved from either:
- the document type used in the Document type table, if the Control account field is completed. If not, then the account number is retrieved from:
- the pseudo account for Supplier control (XCCREaa) in the Pseudo account file in DC1 Financials
The second transaction is the VAT amount. The account number for the VAT posting is retrieved as described in (Accounting) Manually match invoices with no differences.
The third transaction is the transaction type “Reception from supplier”. The account number is retrieved according to the accounting of transaction type 930 in the Inventory transaction type table in DC1 Distribution. When the purchase order was received in DC1 Distribution, this account was credited with the same amount debited in this matching. See Prerequisites DIS. This means that if all purchase orders received are matched with supplier invoices, the amount on the account of transaction type 930 should be zero.
| Reception from supplier: Purchase net price * Received quantity (retrieved from the purchase order) |
In this example the figures are:
Reception from supplier: 1 500.00 * 100 = 150 000.00
Note: You cannot see the transaction type code (930) on any printout or on any panels in the system. On the printouts and on panels, only the corresponding account number is displayed.
The next two transactions are the Purchase account (810) and the Invoiced purchase (814). These two accounts are debited and credited and posted to internal accounts for statistical purposes.
If these transactions are not needed, then you can change the set-up so that transaction type 810 and 814 are posted to the same main account. If this account is summarised, then a zero posting will be made, instead of one credit and one debit with the same amount.
Note: You cannot see the transaction type codes (810/814) on any printout or on any panels in the system. On the printouts and on panels, only the corresponding account number is displayed.
Purchase accounts: Net price in DC1 Financials * invoiced quantity
Invoiced purchase: Net price in DC1 Financials * invoiced quantity
In this example the figures are:
Purchase accounts: 1 500.00 * 100 = 150 000.00
Invoiced purchase: 1 500.00 * 100 = 150 000.00
Note: You can change the Net price in DC1 Financials and the Invoiced quantity when the matching is performed. See (Accounting) Manually match invoices with quantity differences.
The last transaction corresponds to the exchange rate difference. The account number is retrieved according to the accounting of transaction type 811 in the Inventory transaction type table in DC1 Distribution.
Note: The amount of the exchange rate difference is never displayed on this panel. Since the General Ledger does not display system currency, the only way that the difference can be viewed is through listings.
Note: Even if there is no exchange rate difference between the supplier’s invoice and the purchase order, the system will display the transaction on this panel. But when you close this batch and update the General Ledger, the system will not post any amount on this account.
When you close this batch and print the G/L transaction summary journal, the following amounts will be printed and updated in the General Ledger:
| Acc p 1 | Acc p 2 | Acc p 3 | Amount system currency | Amount transaction currency |
|---|---|---|---|---|
| E21100 | NDC | -1 200 000.00 | -150 000.00 | |
| E21800 | 1 515 000.00 | 150 000.00 | ||
| 211000 | 1 200 000.00 | 150 000.00 | ||
| 211100 | -315 000.00 | |||
| 211400 | -1 200 000.00 | -150 000.00 |
Calculation
E211000 NDC in system currency: -150 000.00 * 8.00 = -1 200 000.00
E218000 in system currency: 150 000.00 * 10.10 = 1 515 000.00
Note: This is the account for Reception from supplier. When the purchase order was received in DC1 Distribution, this account was credited with the same amount debited in this matching. See Prerequisites DIS above.
211000 in system currency: 150 000.00 * 8.00 = 1 200 000.00
211100 in system currency: 1 515 000.00 – 1 200 000.00 = -315 000.00
Note: This is the exchange rate difference. This amount was not displayed on the G/L postings entry for A/P documents panel.
211400 in system currency: -150 000.00 * 8.00 = -1 200 000.00
Note: The system does not update any files in DC1 Distribution.
Related topics
- Overview of accounting transactions during supplier invoice matching
- (Accounting) Manually match invoices with no differences
- (Accounting) Manually match invoices with price differences
- (Accounting) Manually match invoices with quantity differences
- About matching A/P invoices and purchase orders manually
- Overview of accounting transactions during goods reception