Problem with matching PO and invoice and exchange rate

[skorek]

Hi

I would like to ask you how you resolve such or similar problem which is lately my nigthmare ;-)

There are many issues when we buying something from domestic vendor, we have the price in doemstic PLN, but with condition that receive price will change depend on exchange rate - and exchange rate now change quickly and often
In the past we entered purchase order i.e. for 100 each/items for extended price 400 PLN - this order sent to vendor. And we receive 100 items, but on invoice we have and extended price 410 PLN (because after few days exchange rate is 4.1 and our unit price 4 PLN was in fact depend on EUR, and was 1 EUR)

During receive - store-keeper can enter ONLY quantity - NOT amount - so he received 100 items for 400 PLN.
And during matching we have 10 PLN as not_fitting amount.
Next condition - because of SOX requirments - acountants during matching PO and invoice can't manually enter special variance account with this 10 PLN.

So usual we had to make cross entry (reverse receive), change purchase order with new-correct unit price 4.1 and again we recive correct amount - but it is very painfull solution.

How you "work" with this problem ?

I'm working about second solution
1) We have an price in domestic - but price is depend on exchange rate - if we know foreign price we can enter it in foreign EUR
2) If we will have and foreign purchord - we can receive using current exchange
3) We receive an invoice in domestic PLN, and have to pay in PLN - it is require condition
4) The problem is that our JDE version A7.3 c11 not allow matching foreign purchase order with domestic invoice. I make it allow but many problem occured - and doesn't know if this proccess is logically correct ...

Regards

 

[dschnittler]

Hi Tomasz,

in theory the process that you describe is perfectly OK despite yout 'little' NEXT condition thing:

From a SOX perspective there is absolutely NO issue with receiving goods at a different price from the original purchase order as long as those differences are recorded properly. And JDE does quite a good job at this point. As long as your AAI's are set-up properly those price changes will be recorded as purchse price variances, the required journals will be created automatically and once posted can be reconciled down to the order level. And this is all the SOX asks for, no hidden transactions and traceability of the why cost has changed. I personally think that this is a lot more transparent than 'voiding' the original order and entering a new one with a matching price. You should talk to your auditors about this and show them the JDE audit trail on purchase price changes. I'm sure they must accept this.

Kind regards, Dieter (World SW A7.3 CUM 11 - heavily moded)


skorek <[email protected]> schrieb am 13.07.2009 13:26:33:




Hi

I would like to ask you how you resolve such or similar problem which is lately my nigthmare ;-)

There are many issues when we buying something from domestic vendor, we have the price in doemstic PLN, but with condition that receive price will change depend on exchange rate - and exchange rate now change quickly and often
In the past we entered purchase order i.e. for 100 each/items for extended price 400 PLN - this order sent to vendor. And we receive 100 items, but on invoice we have and extended price 410 PLN (because after few days exchange rate is 4.1 and our unit price 4 PLN was in fact depend on EUR, and was 1 EUR)

During receive - store-keeper can enter ONLY quantity - NOT amount - so he received 100 items for 400 PLN.
And during matching we have 10 PLN as not_fitting amount.
Next condition - because of SOX requirments - acountants during matching PO and invoice can't manually enter special variance account with this 10 PLN.

So usual we had to make cross entry (reverse receive), change purchase order with new-correct unit price 4.1 and again we recive correct amount - but it is very painfull solution.

How you "work" with this problem ?

I'm working about second solution
1) We have an price in domestic - but price is depend on exchange rate - if we know foreign price we can enter it in foreign EUR
2) If we will have and foreign purchord - we can receive using current exchange
3) We receive an invoice in domestic PLN, and have to pay in PLN - it is require condition
4) The problem is that our JDE version A7.3 c11 not allow matching foreign purchase order with domestic invoice. I make it allow but many problem occured - and doesn't know if this proccess is logically correct ...

Regards

Tomasz SkorzaJDE World SoftwareA 7.3 cum 11


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[skorek]

But look at screenshot Dieter

The place where i should enter "1" do choose line is locked - unavailable! So how to match it?

Tomasz

 

[John Dickey]

You should be able to enter your POs with domestic currency and foreign cur rency, and then match on the foreign currency.=C2=A0 You domestic currency is PLN, but you did not state what your foreign currency is.=C2=A0 Say it i s Euro.=C2=A0 Your PO is 400 PLN and 100 EUR.=C2=A0 Your invoice is, I am a ssuming, 410 PLN and 100 EUR.=C2=A0 You should then match in foreign curren cy mode on the 100 EUR.=C2=A0 Use the AAIs to point that 10 PLN difference to foreign currency account.=C2=A0 You may need to contact support to help you on this setup, I am thinking.=C2=A0 Much easier that what you are endin g up doing.
=C2=A0
John Dickey