OS supplier invoices causing Accounts Payable Out of Balance on Reconciliation Reports

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OS supplier invoices causing Accounts Payable Out of Balance on Reconciliation Reports

If you go back to your old AP reconciliations even in your 2017-2018 fin years which has been rolled and should be locked down you will find out of balance like I did.  I don't think MYOB is explaining it correctly on the forum.  Checking exceptions reports is not the answer.  Needless to say, everyone is spending days looking for a mistake in their system when it is not something they can fix, nor did they cause.  MYOB needs to find the fix.  I believe this is a 2019.1/2/3 shortcoming in the rush to get a product to market for users screaming for foreign currency functions and needing to meet the single touch payroll deadline.  Looks to me like MYOB used a live currency rate on the date they converted our files from AccountRight V19.15 to AccountRight 2019.2 and the conversion disregarded the historically locked down currency rates on transactions. Therefore, when you processed a transaction back in June 2018 you processed it at Euro 0.62, then in July 2019 when MYOB does the conversion, they run with live rate and it has changed old data to live rate.  Now you have a currency gain/loss issue that the system doesn't know what to do with.  There are no fluctuation accounts for it anymore.  Maybe MYOB can explain it better or correct me if I am wrong.

Thanks Jo
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Re: OS supplier invoices causing Accounts Payable Out of Balance on Reconciliation Reports

Hi @Farmmark 

 

Thank you for your feedback in regards to foreign currency in AccountRight 2019.

 

AccountRight 2019.3 did include an update to Accounts Payable Reconciliation Summary/Details reports which did incorrect report data in AccountRight 2019.2 for those foreign currency transactions. These errors could have also generated a false an out of balance, however, the changes made to that space should have updated them from occurring.

 

In terms of your situation, AccountRight Classic did have an interesting feature when it came to the running the ageing and payable reports. It will actually use the set exchange rate of the currency to display that currency, rather than the exchange rate listed on the transaction. In your case, that EURO transaction has the currency exchange rate of  EUR 1.00 = AUD 1.65. Thus that transaction of EUR 13,443.16 = AUD 22,181.21. The Payable report is actually showing $21,777.92 which is calculated at the current exchange rate of  EUR 1.00 = AUD $1.62, assuming that rate the EUR transaction would need to be EUR 13,493.46.

 

AccountRight 2019 doesn't do that conversion and just uses the base transactional exchange rate for display in that reports. For example, the exchange rate of that transaction is  EUR 1.00 = AUD 1.65 thus the transaction is  EUR 13,443.16 = AUD 22,181.21 and thus that value is displayed in AccountRight 2019.3. There is some slightly rounding as the currency exchange rate doesn't calculate quite as nicely with it being 0.60606061.

 

So, you are quite right there is a difference with the two product ranges when it comes to those values, in theory, this could be significant if you do have a large exchange rate fluctuation and a large amount. However, it is to do with how the reports are generated and the exchange rate that the system does use (currency set exchange rate vs transactional set exchange rate). 

Kind regards,
Steven

MYOB Community Support

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