ASWatCR's avatar
12 years ago

Multi-Currency: Customer deposit payments exchange residual value

I am new to using multi currency, however I do understand the logic behind it.  When it is a simple case of recording a sale (at a given exchange rate) and then receiving the funds (at a different exchange rate), the difference will be recognised as fx gain/loss.  I believe MYOB handles this easily.


However when I make use of the Sales Order/Customer deposits facility, it does not work so easily (I am happy to be corrected, but I spoke to support today and they agreed with me and suggested I post details of it here, so this is exactly what I am doing).


I have attached screen prints of my example.  The chain of events is as follows:

1) Sales Order raised - EUR1000 (AUD 1,200 equivalent)

2) Customer deposit received for full amount - EUR1000 (AUD1,300 equivalent)

3) Sales Order coverted to Invoice


Theoretically, after all these transactions, the Balance Sheet accounts (Trade Debtors/Trade Debtors Exchange Account + Customer Deposits/Customer Deposits Exchange Account) should all be nil - i.e. invoice raised and paid in full, so nothing should be left on the balance sheet.  But there is - $100DR in Trade Debtors Exchange Account and $100CR in Customer Deposits Exchange Account - these amounts need to offset each other (by a manual general journal).  Refer attached screen prints.


So I then thought if manually cleared the $100 gain at the customer receipt stage (because MYOB will allow you to change the gain or loss to whatever you want it to be - sounds dangerous), then maybe I would solve my issue.  However, I end up with $100CR in Customer Deposits Exchange Account and missing $100CR in FX gain. Again a GJ required to clear the imbalance. Refer attached screen prints.


Do you agree there is an issue here? If no, please advise what I am missing.  If you do see an issue, will this be fixed?  Again, I am very happy to be corrected if I have misunderstood the process.

"Multicurrency - Is this a bug?"


  • Mike_James's avatar
    Ultimate Partner

    This is how it has always been, ie the original deposit is recorded at the exchange rate of the customer payment, but the transfer from deposits is recorded at the rate of the sales invoice. This leads to exactly the situation you have described. At least the adjustment is across balance sheet accounts.


    The journal adjustment is easy for one transaction, but not so easy for a whole series, but the customer deposits account can be reconciled eventually.

  • Thanks for your reply.  In one sense it's good to know that i do understand it! but on the other hand I would have thought that this would be a simple thing for myob to fix and save a whole bunch of manual journal entries. 


    It would be great to know from myob if this is something they will correct or whether we just need to deal with it.  This is difficult to explain to clients especially when they think myob will be doing it all automatically.

  • Hi,

    I believe this should be a very easy fix for MYOB. It has to make amendments to the program to ensure that the transfers from the deposits to the creditors and creditors exchange accounts are done at the same values/exchange rate as that at the time of the actual deposit payment.


    Theoretically, the current MYOB transfer journal amounts to altering historical data which is not acceptable from an accounting/auditing point of view. The use of manual accounting journals should be minimised as far as possible from an audit point of view. Also it would become a challenge for lesser trained/accomplished bookkeepers/accountants to understand and post the manual journals as currently required.


    The current process is just creating a mountain out of a mole hill :).


    MYOB Development team- Please do something urgently to fix this very simple fix. I am surprised it has taken over a year for MYOB to still action this...

  • Thanks for the post Tina and giving this "bug" air time so that it is hopefully addressed ASAP.


    It was very embarrassing explaining to my client who thought the multi currency feature would streamline everything for them, that it did not actually work in the software. :(


    And I agree it should be simple to fix to the behind the scenes journals so they go to the correct accounts etc

  • Suja_P's avatar
    Former Staff
    Status changed:
    Thank you for the post and comments. Our Developer team is currently working on an update for Premier on the new platform. We hope for this issue to be addressed in this upgrade.
  • Status changed:

    Hi Everyone


    AccountRight 20xx removes the need for currency exchange holding accounts. As the transactions are recorded in the local currency this situation would be resolved and there would be nothing remaining in the exchange account or the deposit account following the recording of a transaction of that nature.