Hi @lubos ,
I would like to suggest a spot rate system when processing supplier invoices. in Zambia the tax regulation is that the ROE to be used is dictated by the supplier and NOT the RECIPIENT which means in one day i can process multiple invoices with varying ROE’s
i would suggest that as one is capturing a supplier invoice , a ROE box be included (the same way we enter discounts) if no change is made then the system rate should be used
Are you required to report foreign currency taxes separately or are you required to report your entire tax in local currency?
Also, please provide relevant regulatory documents for such tax treatment.
Hi
In Zambia VAT registered tax payers we use a machine called an EFD (Electronic Fiscal Device) its like a POS machine basically, it updates Rates based on Bank of Zambia rates however these may vary based on time of invoicing. So invoicing is dependent on the ROE in the machine
see below example of ROE for today which will vary
So this is basically a manual override of standard exchange rate at individual transaction level.
I think your use case is enough to make this an idea.
Yes. Its exchange rate on individual invoices as opposed to using the monthly weekly or daily rate.
Added to the latest version (23.7.6)
Thanks @Lubos. I did a trial and maybe I do not understand how this works. I created a FOREX Purchase Invoice (EURO while base was Dollar) and I set an Exchange rate for an item. I subsequently paid the invoice in Euro to an Euro account which did not apply the rate set in the Invoice but at FOREX exchange rates in settings. When drilling down on " Summary->Foreign exchange gains(losses)" you can see from this screenshot that it adds a loss, is this supposed to happen?
It is also strange that I set a EURO to Dollar rate in the Invoice to 1-0.92 but in the screenshot it says 1-1.09. Maybe I am missing something and would like to be enlightened. Thanks
There are some upcoming changes how foreign exchange revaluations are going to be shown since this is still too complicated. However even under current implementation, the figures should be consistent.
Can you make a screenshot of “Journal” view for that purchase invoice?
Click on Journal button to get general ledger view.
There is Journal button. See:
Shouldn’t there be an option to enable or disable this feature?
I have an issue with some users in the purchasing and payroll departments who used to make purchase invoices/payslips without the need to enter exchange rates, as they have no access to system-defined exchange rates (and won’t be given such access) and the system will show the latest system-defined exchange rate, even if the transaction date is changed to the previous date. Now they have to wait till they get the rates from accounts. The question is, what will happen if no rates are entered in the exchange rate field in purchase invoices, payslips, or any other transaction containing the newly introduced field?
Even though it looks like I’m fulfilling feature request here, the reality is that exchange rates will need to be captured on transaction level. It’s just a coincidence someone has asked for it.
For people issuing payslips or invoices, they are not really affected. However if exchange rate is not entered or is entered incorrectly, then it would affect account balances in base currency. And that would eventually inflate foreign exchange gains / losses.
I’m working on a solution. One way would be some kind of Exchange Rate Audit report that could check exchange rates across transactions. Anyway, we will figure it out. The goal is to make multi-currency simpler and easier to understand. Not more complicated.
I have noticed that the system is only capturing base currency please look at below
this exchange rate as of june 2023
This is currency as of
while I have entered counter rate the system still give the old rate as per below
can you please have a look
The dates you show do not match so your conclusion is not verifiable. The SAR = GBP was 8/7/2023 and nowhere does this show in the list of your second screenshot. As for that matter nor does 30/6/2023 as per first screenshot show.
Actually none of the dates you show in the 2nd screenshot list 2023 entries.
it seems to me you didn’t have a look the exchange rate in the purchase invoice which captured the rate as of April 2021. where it should capture the rate as of june 2023 which is the latest
@abdulbari the auto-filling of exchange rate comes from edit screen of Foreign Currency.
There is a field:
Enter your latest exchange rate into this field. Then try to create new multi-currency transaction.
