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?"