I have accounts with a single supplier in two different currencies, USD and ZWL. I have a USD credit, but need to pay a ZWL invoice from them. They’ve transferred the funds across on their side and told me the exchange rate they used, which is slightly different from the exchange rate I have in my settings.
I created a journal entry in USD crediting the accounts payable of their USD account and debiting the accounts payable of their ZWL account. In the optional field for the ZWL amount, I entered the amount determined by the exchange rate the supplier used.
If I check my list of suppliers, both the USD and ZWL accounts appear to be balanced, with nothing owing or owed on either. Drilling down on the hyphens in the Accounts payable column shows a list of the expected transactions. However, in my summary page under Accounts payable is an amount equal to the difference on the transaction total calculated using their exchange rate compared to mine. I have reproduced the issue with a test business.
I wondered if I should allocate the difference to a “Foreign Exchange Adjustments” account as suggested by @Brucanna here, but since the accounts appear to be balanced in the supplier list I think this will just cause them to be unbalanced. Is this expected behaviour, or a bug? How should I clear the amount showing under Accounts payable?
Here are the transactions for Supplier A (ZWL):
The transactions for Supplier A (USD):
The journal entry edit screen:
The Accounts payable screen as seen when drilled down from the summary page:
And the entries showing when I drill down on the -ZWL$ 100.00 from the Accounts payable screen above:
In this test scenario above I had my exchange rate in the settings set to USD$1 = ZWL$15. For the journal entry I used USD$1 = ZWL$16. So the ZWL$100 under accounts payable seems to come from the difference between USD$100 calculated at the two different rates.
(I’m using Windows desktop verion 19.10.12.)