Currency Deviation and Rounding Differences in Customer Payments

This document explains how rate differences (currency deviations) and recording of rounding differences are managed in M3 accounts receivable.

Outcome

Currency deviations and rounding differences are recorded on the accounts specified (see below). The individual transactions can be reviewed in 'General Ledger. Display Transactions' (GLS210), the balance in 'GL Balance File. Display' (GLS215).

Accounts receivable and the general ledger are updated, according to the accounting rule and accounting option specified – refer to Before you start. For an example of transactions created for currency deviation, see below.

Before you start

These are the setup elements to consider:

Currency Deviations and Rounding Differences

Currency deviations and rounding differences may occur when working with accounts payable and accounts receivable, and also when working with journal vouchers in the general ledger.

Recording Currency Deviation

If a customer invoice is created in a foreign currency, the amount is automatically exchanged to local currency in the general ledger for internal purposes.

The received payment is recorded and allocated to the original invoice in ‘Payment Received. Record’ (ARS110). However, a rate difference may remain in the general ledger. This difference is automatically recorded in M3.

Rate differences are recorded according to the accounting rules defined – refer to the 'Before you start' section.

Example of Currency Deviation

Recording Rounding Differences

A small rounding difference may sometimes occur when the invoice eventually is fully paid. This can for instance occasionally be the case when several partial payments are used to pay an invoice. The rounding difference is automatically recorded according to the accounting string and VAT method specified for accounting option 99.

For manually writing off rounding differences in ‘Payment Received. Record’ (ARS110), a user-defined accounting option between 20 and 98 can be used, if necessary. Note that option 99 should not be used for this purpose.

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