User:Brett Wuth/Working Notes/2020-02-23 Accounts Payable (A/P) - USD discrepancy
From PCSAR
- Accounts Payable (A/P) - USD shows a consistent unresolved -CAD$0.02 starting 2018-11-19
- error is in balance at start of fiscal year
- needs adjusting journal entry at start of fiscal year 2018-09-01
- exchange rate at 2018-09-18 1.297353
Something weird and complicated going on.
The account "Accounts Payable (A/P) - USD" is showing an unresolved -CAD$0.02 whenever the phone.com bill is paid off.
It's as if there is an unbilled CAD$0.02 that is being paid.
However, the first pair of bill payments that creates this effect don't show any overpayments.
My first attempt to sort this out is to create a US$0.02 bill for the start of the year 2018-09-01 and label it as a rounding error correction from previous years. Although that then shows the CAD$ balance returning to $0.00, it also creates a bill that never gets paid.
I took a look in the supplier list, and phone.com is the only one that uses US$.
Perhaps this should be a journal entry rather than a bill. Tried that and it too requires a supplier (phone.com) and creates a bill (now journal entry) that is never cleared.
This is a difficult problem, that lacks a clear explanation and solution.
Until I figure it out, better to leave as is, with no attempted (and incomplete) corrections applied.
Has the CAD$0.02 always been the same value over time? Was it CAD$0.01 at one time, and CAD$0.00 at another?
- 2018-04-19 balance $0.00
- 2018-11-19 balance $-0.02
- 2019-03-19 balance $-0.02
- 2019-07-19 balance $-0.02
- 2019-08-19 balance $-0.02
- 2019-09-19 balance $-0.02
- 2019-10-19 balance $-0.02
- 2019-11-19 balance $-0.01
- 2019-12-19 balance $-0.01
| date | amount CAD$ | balance CAD$ | amount US$ | exchange rate | exchanged CAD$ | amount CAD$/US$ | exchanged using bill rate |
|---|---|---|---|---|---|---|---|
|
2019-10-19 |
-31.30 |
-0.02 |
-23.14 |
1.3524962 | 31.296762068 | 1.3526361279 | |
|
2019-11-18 |
60.90 |
60.88 |
46.11 |
1.32067 | 60.8960937 | 1.3207547169 | 60.8960937 |
|
2019-11-19 |
-30.44 |
30.44 |
-23.05 |
1.3617437 | 31.388192285 | 1.3206073752 | 30.4414435 |
|
2019-11-19 |
-30.45 |
-0.01 |
-23.06 |
1.3617437 | 31.401809722 | 1.3204683434 | 30.4546502 |
Interestingly the exchange rate used is not the one entered with the Bill Payment, but the exchange rate of the Bill that is being paid.
(Verified by altering only the Bill Payment's exchange rate and seeing the effective rate change.)
So this ultimately comes down to a rounding error as a result of the payment being split into two and the exchanged value of each payment being rounded to the nearest cent and then not necessarily adding up to the whole.
The root problem is not being able to enter one payment coming from two subaccounts (e.g. AGLC Casino:General and AGLC Casino:Admin).
[edit] To do
I see no simple way to solve this.
- Consider whether a journal entry would handle
- Consider whether an intermediary account for phone.com in CAD$ would allow a single exchange and then two payments
- Perhaps the "Accountant" view gives additional tools.
