Creating multi currency adjustment voucher

This page allows you to create the multi currency adjustment voucher. Tell me more

• Select the “Create Multi Currency Adjustment” link under the “Customer Balance Adjustment” business component.

The “Create Multi Currency Adjustment” page appears.

• Enter the following fields in the “Voucher Information” group box:

The system displays the following field:

• Enter the following fields:

Note: The default finance book selected in the “Set Function Defaults” page will be displayed if the “Allow Multiple Finance Book Postings” field is set to “No”.

•  Enter the following fields in the “Customer Information” group box:

Note: The currency entered in the “Credit Document Currency” field is retrieved in the credit document multiline.

Note: The system sorts the credit and the debit document based on the adjustment sequence selected. 

• Enter the following fields in the “Credit Documents” multiline:

Note: For the debit and the credit the system displays the cumulative values if available.

Note: If the difference between the unadjusted credit document amount and the cumulative current adjustment is greater than zero, then the credit document status is “Partly Adjusted”. If the total amount is adjusted, then the document status is “Adjusted”.

The system retrieves the credit document details of the document type “RV” or ”CCI” or “CCA” or  “CTC”, only if the document is in the “Authorized” or “Partly Adjusted” status.

The system retrieves the credit document details of the document type  “CTP”, only if the document is in “Paid” or “Partly Paid” or “Partly Adjusted” or “Authorized” status. This condition is applicable if “Adjustment of Prepayment Invoice (Cr.) before receipt” is set as “Allowed” in the “Set Function Defaults” activity.

The system retrieves the credit document details of the document type “CTP””, only if the document is in “Paid” or “Partly Paid” or “Partly Adjusted” status. This condition is applicable if “Adjustment of Prepayment Invoice (Cr.) before receipt” is set as “Not Allowed” in the “Set Function Defaults” activity.

The system displays the following fields:

Note: If the credit document unadjusted amount is greater than the credit document adjustable amount and if the credit document adjustable amount is greater than zero and if the discount proportional is set to “Yes”, then the discount is the product of the debit document unadjusted amount and the discount rate. If the discount is greater than the discount available, then the system sets the discount to the discount available.

If the discount proportional is set to “No”, then the system sets the discount to the discount available.

If the credit document unadjusted amount is greater than the credit document adjustable amount and if the credit document adjustable amount is less than zero and if the discount proportional is set to “Yes”, then the discount is the product of the debit document unadjusted amount and the discount rate. If the discount is greater than the discount available, then the system sets the discount to the discount available.

If the discount proportional is set to “No” and if the debit document unadjusted amount is less than the credit document unadjusted amount, then the discount is debit document unadjusted amount-1.

• Enter the following field:

Note: The current adjustment must be less than or equal to the credit document unadjusted amount

The system displays the current adjustment as the difference between the current adjustment and the cumulative current adjustment initially if the cumulative value exists.

 The system displays this field on proposing the adjustments.

The system displays the following fields:

Note: The voucher finance book and the credit document finance book must be the same.

• Enter the following fields in the “Debit Documents” multiline:

Note: If the difference between unadjusted debit document amount and the cumulative debit document adjustment amount is greater than zero, then the debit document status is “Partly Paid”. If there is no difference, then the debit document status is “Paid”. The system retrieves the debit document details of the document type "CPV”, only if the document is in “Authorized” or “Partly Adjusted” status.

The system retrieves the debit document details of the document type “CDA” or “CDI” or “CTD” or “CDIN” or “CMI” or “SI”, only if the document is in “Authorized” or “Partly Paid” status.

The system displays the following:

Note: The debit document date must be less than or equal to the voucher date.

Note:  The total unadjusted amount for the selected debit documents is greater than the total unadjusted credit amount, then the unadjusted amount is carried forward for adjusting with the next document.

Note: If the customer hierarchy is set to “Local”, then the customer code in the customer information must be the same as the debit document customer code.

If the customer codes are not the same, then the customer hierarchy must be set to “Child” or “Group” in the “Customer” business component.

Note: The customer information currency and the debit document currency must be the same.

• Enter the following fields:

Note: The debit document unadjusted document amount is converted into the currency of the credit document. The debit documents adjusted amount is computed as (current adjustment+discount-charges).

The system initially sets the adjustment amount to the difference between the debit document adjustment amount and the cumulative debit document adjustment amount. The debit document adjustment amount must be less than the debit document unadjusted amount.

If the unadjusted credit amount is less than the debit amount for a document, then the system displays the minimum amount on proposing adjustments.

Note: The discount is converted to the currency of the credit document. For the selected debit document, the system sets the discount as the difference between the discount and the cumulative discount. The system computes the discount rate as discount rate=debit document discount amount / due amount, if the debit document is other than the “CP”.

Note: For the selected debit document, the system sets the charges as the difference between the charges and the cumulative charge. The system displays the adjustment amount, discount and the charges in the respective fields on proposing the adjustments. For the debit documents both discount and the charges must not be entered.

The system displays the following:

• Enter the following fields:

Note: The system sorts the credit and the debit document based on the document dates in the ascending or the descending order based on the adjustment sequence specified.

• Check the box in the “Credit Document” multiline to mark the credit document for adjusting with the debit document.

• Check the box in the “Debit Document” multiline to mark the debit documents for adjusting against the credit documents.

Note: Ensure that all the selected documents in the “Credit Documents” and “Debit Documents” multilines are either forward cover applicable or not forward cover applicable. This infers that you cannot have a selection that includes both forward cover and non-forward cover documents.

Note: Ensure that the currency of the selected credit documents is the same as that of the selected debit documents.

Note: Ensure that the exchange rate of the selected credit documents is the same as that of the selected debit documents, if “Accounting for Hedge Gain/Loss” is set to “Fixed Rate” in the Company Parameter Setup component.

Note: Atleast one document must be checked for adjustments in both the multilines.

• Click the “Propose Adjustment” pushbutton to calculate the proposed adjustment amount.

The system calculates the current adjustment amount for the credit document and the debit document adjustment amount. The system calculates the adjustment amount, discount and charges for the debit amount.

• Click the “Compute Adjustment” pushbutton to compute the debit and the credit adjustment amount.

The system performs the following:

The system computes the adjustments details. See Computing Adjustment amount for more details

• Allocates Credit Document values to Debit Documents according to the LIFO or FIFO sequence as per the “Adjustment Sequence” specified by the user in the “Customer Information” group box of the Create Multicurrency Adjustment Voucher” activity of the current business component.  

• Calculates the proportionate Debit Document Adjusted Amount in Debit Doc. Curr.as follows:

(Adjustment Amount for each debit document / Credit Doc. Adj. (Credit Curr.) for each debit document) * Allocated Credit Document amount in credit document currency for each debit document.

• Calculates the Cross Currency Exchange Rate as follows:

Cross Currency Exchange Rate = Credit Doc. Adj. (Credit Curr.) / Adjusted Net Debit Doc. Amount

(Adjusted Net Debit Doc. Amount = Adjustment Amount  - Discount + Charges)

Note: Ensure that for single currency transactions, the sum of “Current Adjustment” of the selected Credit Documents is equal to the sum of the selected debit documents ie. Adjustment Amount  - Discount + Charges

See Example

The system displays the following fields in the “Adjustment Summary” group box:

Note: The system displays all the values in the transaction currency of the credit document.

• Click the “Create Voucher” pushbutton to create the multi currency adjustment voucher.

The system performs the following:

• Updates the status of the customer adjustment to “Fresh”. The system updates the login ID of the user to the “Created By” and the system date to the “Created Date” field.

For the Adjustment Vouchers selected for authorisation, If the credit document is of type “Prepayment Invoice” and if the selected Prepayment Invoice have any taxes, the system transfers the tax amount (proportionate to adjustment amount) to the TCD account or to Expenses account based on the option set in the “Set Function Defaults” activity.

The tax amount to be transferred to Expense account or to TCD Account will be computed proportionately:

• Allocates Credit Document values to Debit Documents according to the LIFO or FIFO sequence as per the “Adjustment Sequence” specified by the user in the “Customer Information” group box of the Create Multicurrency Adjustement Voucher” activity of the current business component.  

• Calculates the Cross Currency Exchange Rate as follows:

Cross Currency Exchange Rate = Credit Doc. Adj. (Credit Curr.) / Adjusted Net Debit Doc. Amount

(Adjusted Net Debit Doc. Amount = Adjustment Amount  - Discount + Charges)

• Calculates the proportionate Debit Document Adjusted Amount in Debit Doc. Curr.as follows:

• (Adjustment Amount for each debit document / Credit Doc. Adj. (Credit Curr.) for each debit document) * Allocated Credit Document amount in credit document currency for each debit document.

• Click the “Create And Authorize Voucher” pushbutton to create and authorize the adjustment voucher.

The system performs the following:

• Creates the voucher and updates the status to “Authorized”.

• Calculates the proportionate Debit Document Adjusted Amount in Debit Doc. Curr.as follows:

(Adjustment Amount for each debit document / Credit Doc. Adj. (Credit Curr.) for each debit document) * Allocated Credit Document amount in credit document currency for each debit document.

• Calculates the proportionate Debit Document Adjusted Amount in Debit Doc. Curr.as follows:

(Adjustment Amount for each debit document / Credit Doc. Adj. (Credit Curr.) for each debit document) * Allocated Credit Document amount in credit document currency for each debit document.

• If the currencies of the customer receipt and the debit document from the other group company vary, the exchange rate variance of the adjustment will be posted to the debit document's company.

The system displays the following fields:

To proceed, carry out the following

• Select the “Edit Voucher” link at the bottom of the page to modify the multi currency adjustment voucher.

• Select the “Accounting Information” link at the bottom of the page to view the accounting information.

• Select the “Account Based Credit Note” link at the bottom of the page to view the account based credit note.

• Select the “Account Based Debit Note” link at the bottom of the page to view the account based debit note.

• Select the “Authorized Prepayment Invoice” link at the bottom of the page to view the authorized invoice.

• Select the “Direct Invoice” link at the bottom of the page to view the direct invoice.

• Select the “Item Based Credit Note” link at the bottom of the page to view the item based credit note details.

• Select the “Item Based Debit Note” link at the bottom of the page to view the item based debit note details.

• Select the “Service Invoice” link at the bottom of the page to view the service invoice details.

• Select the “Paid Prepayment Invoice” link at the bottom of the page to view the prepayment invoice details.

• Select the “Payments” link at the bottom of the page to view the payment information of the voucher.

• Select the “Receipts” link at the bottom of the page to view the receipt information of the voucher.

• Select the “Transfer Debit Note” link at the bottom of the page to view the transfer note of the voucher.

• Select the “Transfer Prepayment / Credit Note” link at the bottom of the page to view the transfer credit note details.

Creating multi currency adjustment voucher – An overview

You can also adjust the documents in same currency. You can select the debit and the credit document in this page for adjustment. You can also authorize the multi currency adjustment voucher created. The numbering type of the adjustment voucher can be manual or it can be a predefined series. The voucher number is generated based on the numbering type selected. You can also specify the finance book in which the voucher is to be posted. You can specify the customer hierarchy based on which the adjustment voucher has to be adjusted. The customer hierarchy can be local, child and group. You can specify the currency of the credit document.

The adjustment can also be made based on the adjustment sequence specified.

Adjustment Sequence

• FIFO– First in first out.  Indicates that the earliest credit and the debit documents are taken up for adjustments.

• LIFO – Last in first out. Indicates that the latest credit and the debit documents are taken up for adjustments.

You can select the “Receipt Voucher”, “Prepayment Invoice”, “Account Based Credit Note”, “Item Based Credit Note”, and the “Transfer Credit Note” as a credit document to adjust it against the debit document. The various debit documents available are “Account Based Debit Note”, “Item Based Debit Note”, “Direct Invoice”, “Miscellaneous Invoice”, “Prepayment Invoice”, “Pack Slip Invoice”, “Payment Voucher”, “Transfer Debit Note”, “Service Invoice”. The system displays the date on which the documents were raised, the total unadjusted amount pending for adjustment and the amount of the document. You can enter the amount to be adjusted or even propose the adjustment amount. The system displays the adjustment amount, discount claimed on the document and the penalty charged on the document on proposing the adjustment amount. The system displays the login organization unit in which the debit or the credit documents were raised. The system also displays the finance books in which the adjustment vouchers are posted. You can also specify the code identifying the cost center, the code identifying the analysis and the sub-analysis for the debit document. This page allows you to compute the adjustment amount and also seek help for the debit and the credit document.

 The system updates the status of the multi currency adjustment voucher to “Fresh” on creation and “Authorized” on authorizing the voucher. The system updates the login ID of the user to the created by and the system date to the created date.

Prerequisites

• The customer and the other details must be defined in the “Customer” business component.

• Numbering type must be defined in the “Document Numbering Class” business component.

• Finance book must be defined in the “Organization Set Up” business component.

• Currency must be defined in the “Organization Set Up” business component.

• The cost center must be defined in the “Cost Setup” business component.

• The analysis code must be defined in the “Account Based Budget” business component.

• The sub-analysis code must be created and assigned to the analysis code in the  "Account Based Budget” business component.

• Financial calendar must be defined in the “Accounting Setup” business component.

• Availability of at least one open debit and credit document for Adjustment.

What you can do in this page

Adjustment based on the customer hierarchy

Adjusting the document based on the sequence specified

Proposing adjustment amount

Computing adjustment amount

Adjustment based on the customer hierarchy

• Set the option to “Local” in the “Customer Hierarchy” field to adjust the documents within the same customer.

• Set the option to “Child” in the  “Customer Hierarchy” field to adjust the parent and the child customer.

• Set the option to “Group” in the  “Customer Hierarchy” field to adjust the customers belonging to the “Receipt Application Group”.

• Enter all the necessary information and select the debit and the credit documents for adjustment.

• Click the “Create Voucher” to create the adjustment voucher.

Adjusting the document based on the sequence specified

You can select the documents for adjustments based on sequence specified. The system sorts the documents based on the adjustment sequence provided before actual adjustment.

• Set the “Adjustment Sequence” field to “FIFO” to select the earliest credit and debit documents for adjustment.

• Set the “Adjustment Sequence” field to “LIFO” to select the latest credit and debit documents for adjustment.

Proposing adjustment amount

• For the selected debit and the credit document, if the cumulative value exists, then default the values as the cumulative or proposed values. Else the system displays zero.

• If the cumulative value is available, then set the unadjusted credit document amount as (unadjusted credit document amount – cumulative current adjustment).

• Set the unadjusted debit document amount as (unadjusted debit document amount – cumulative current adjustment).

• Set the discount available as (discount available-cumulative discount).

• For the selected debit and the credit document, get the exchange rate for debit document currency with respect to the credit document currency.

• For the selected debit document, the unadjusted debit document amount (in credit document currency)=unadjusted debit document amount * exchange rate of the credit document.

• For the selected debit document, compute the discount available as discount available * credit currency exchange rate.

• Compute the credit document adjustable amount as unadjusted debit document amount (in credit doc currency) – discount available (in credit doc currency).

• For the debit document, retrieve the discount grace date, receivable grace days, residual write off % and the residual write off amount.

• Compute the actual discount date, which is the discount date + grace days. The date, which includes the extra days within which the discount can be availed.

• Compute the actual due date which is due date +grace days. The date, which includes the extra days within which the payment has to be made.

• If the credit document date is less than or equal to the actual discount date, then set the disc param to “Yes”. Else set it to “No”.

• If the credit document date is greater than the actual due date, then set the char param to “Yes”. Else set it to “No”.

• If the disc param is “Yes”, then compute the credit document adjustable amount as debit document unadjusted amount-discount available.

• Compute the discount rate as (debit document discount amount/debit document due amount).

• Compute the discount as debit document unadjusted amount * discount rate.

• If discount is greater than the discount available, then set discount as discount available.

• Set the debit document adjustment amount to the debit document unadjusted amount.

• Set the current adjustment as debit document adjustment amount – discount.

• If the credit document adjustment amount is less than zero, then set the current adjustment to the credit document adjustable amount. Set the discount to the discount available. Set the credit document balance amount to (credit document unadjusted amount – current adjustment).

• If the disc param is set to “No” and the char param is set to “No”, then compute debit document unadjusted amount as credit document adjustable amount.

• If the disc param is set to “No” and the char param is set to “Yes”, then compute the debit document adjustable amount as [(debit document unadjusted amount + (debit document unadjusted amount * penalty * (credit document date – due date / 365)].

Computing adjustment amount

• For the selected debit and the credit document, if the cumulative value exists, then default the values as the cumulative or proposed values. Else the system displays zero.

• For the selected credit document, set the current adjustment as current adjustment – cumulative current adjustment.

• For the debit document, set the debit document adjustment amount as debit document adjustment amount – cumulative debit document adjustment amount and the set the discount as discount – cumulative discount.

• For the debit document set the charges as charges – cumulative charges.

• For the selected credit and the debit document, get the exchange rate for the debit document currency with respect to the credit document currency.

• For the selected debit document, compute the debit document adjustment amount as debit document adjustment amount * credit currency exchange rate.

• For the selected debit document, compute the discount as discount  * credit currency exchange rate.

• For the selected debit document, compute the charges as charges * credit currency exchange rate.

• Select one debit and credit document.

• For the debit document, retrieve the discount grace date, receivable grace days, residual write off % and the residual write off amount.

• Compute the actual discount date, which is the discount date + grace days. The date, which includes the extra days within which the discount can be availed.

• Set the actual discount date to the due date if the actual discount date is greater than the due date.

• Compute the actual due date which is due date +grace days. The date, which includes the extra days within which the payment has to be made.

• If the credit document date is less than or equal to the actual discount date, then set the disc param to “Yes”.

• If the credit document date is greater than the actual due date, then set the char param to “Yes”.