Hello:
In a Multicurrency environment, when the A/R subledger is out of balance with the general ledger for the month by say 0.01, the first step is to compare the Apply Date (DATE1) with the GL Posting Date (GLPOSTDT) in the A/R apply table (RM20201).
For example, if a cash receipt were posted in the A/R and in the general ledger in June but was not applied to a debit memo until August (the debit memo was not created until August), I have noticed that GP can calculate a 0.01 Multicurrency Rounding Difference for August. For some customers, the August A/R subledger then appears out of balance to the general ledger, due to this June vs. August timing difference and this 0.01 difference.
In the instance I recently saw, RM20201's APYTORNDAMT showed an amount of -0.01000. In this table, the Apply From Exchange Rate was .78173 for the Euro originating currency. But, there was no Apply To Exchange Rate for the British Pound--the company's functional currency. GP, also, showed that the Euro's exchange rate for August was .78173.
RM20201 did not show an exchange rate of .78172. But, when I reviewed the Applied From Credits window and drilled back on this cash receipt payment document in GP, I saw that the app calculated its general ledger account distribution amounts based on an exchange rate of .78172.
The functional currency amount of the cash receipt was 604.89 Pounds, while the originating currency amount was 773.79 Euros. If you divide 604.89 by 773.79, you derive .78172.
Why did this Multicurrency Rounding Difference occur? True, I did see in GP that the exchange rate for the Euro in August was .78173 and again this was shown in RM20201.
But, why did GP "use" .78172 when the cash receipt was applied to the debit memo in August?
Also, I noticed that RM20201 showed that the Apply to Document Amount was 604.88 Pounds. GP did not show this amount anywhere that I could see. It showed 604.89 Pounds for both June and August. In addition, RM20201 showed 604.89 as the Apply From Document Amount. And, again, GP showed an exchange rate of .78173 for the Euro in August. (In June, GP showed that the Euro's exchange rate was .84089, but I ignored this exchange rate since it did not seem to come into play in any of the calculations.)
Can someone please help me hash out this confusion, for me, on Mutlicurrency Rounding? Specifically, I'd like to know why this rounding difference occurred and why SQL's RM20201 used 604.88 as the Apply To Document Amount and GP used .78172 for the August Euro exchange rate.
Thak you!
John