c2c-oerpscenario team mailing list archive

[Mark Tarpy <438717@xxxxxxxxxxxxxxxxxx>]

I posted this comment as a question under "Answers" on Dec 18th, however
as by problem seems related to this bug I'll post it here as well.

The essence of the problem seems to be that the "cost" used for
calculating the cost of sales on a sale made in a currency other then
the default company currency is treated as if it were a value in the
secondary currency when in fact it is a value in the default company
currency.

The details as it related to my situation as below, as posted originally
in my questions are as follows:



My default company currency is set to TWD (Taiwan Dollars) and I have
the Anglo-Saxon accounting method installed.

My default sale price list in is TWD and I have a second price list in
USD.

When I make a sale using the USD price list:

-The "Account Receivable" account shows the USD value the same as
entered on the invoice under "amount currency" and the the "debit"
amount in is TWD at the correct amount according to the exchange rate.
(This seem to be correct).

-The entries to the "Income Account" account likewise seem correct. The
USD value from the invoice shows under the "amount currency" and the
"credit" is the correct amount of TWD according to the exchange rate.

-The "Expense Account" (cost of sales) however lists the "cost price"
(from the product page (note I'm using "Average Price" for "Costing
Method")) as the USD value (the cost price is in TWD as that's the
company default) and the "debit" is the cost price (as if it was in USD)
exchanged at the exchange rate.

-The "Output Stock" account is likewise affected. The "credit" is the
cost price (as if it was in USD) exchanged to TWD at the exchange rate
value.

The second 2 entries are not working correctly, however I'm unsure if
this is because of the my set up or due to an actual fault. I'll list
the translations again below in more detail using actual figures:

Premiss:

Default Currency = TWD

TWD to USD exchange rate = 0.033270

Products "cost price" = 56 TWD (using "Average Price" as the "Costing
Method")

Products sale price in USD is $ 2.40

Customer is set to use a pricelist in USD (other then the currency there
is no difference between the TWD & USD pricelists)

Sale is for 1 product

Entries:

On Invoicing:

-"Accounts Receivable" account is debited 72.137 ("amount currency" is
2.40 and "currency" is USD) (2.40 / 0.033270 = 72.137) This seems
correct to me.

-"Income Account" account is credited 72.137 ("amount currency" is 2.40
and "currency" is USD) (2.40 / 0.033270 = 72.137) This also seems
correct to me.

-"Expense Account" account is debited 1683.198 ("amount currency" is 56
and "currency" is USD) (56 / 0.033270 = 1683.198) This isn't correct, it
seems like the cost price should not be converted to USD but listed in
TWD which is the price cost price and the value of stock is being
calculated in.

-"Output Stock" account is credited 1683.198, this seems to be the same
problem entry 3.

It seems to me that if the cost of sales and stock value entries need to
be calculated in the invoice currency then the cost price first needs to
be converted into the secondary currency, for example: (56 (cost price
in TWD) * 0.033270 (TWD to USD exchange rate) = 1.863) this value should
then be listed as the "amount currency" value and the posted debit or
credit should be (1.863 (cost price converted to secondary currency (USD
in this case) / 0.033270 (TWD to USD exchange rate) = 56) So it's back
to the cost price in the default currency.

I don't have much experience with OpenERP, is this incorrect behavior of
the multi-currency accounting entries due to by set up being incorrect?
Or perhaps due to a bug in either the Anglo-Saxon accounting module or
the multi-currency part of the system?

(Note that I'm using OpenERP 6.0 RC1)

-- 
You received this bug notification because you are a member of C2C
OERPScenario, which is subscribed to the OpenERP Project Group.
https://bugs.launchpad.net/bugs/438717

Title:
  Error in account_anglo_saxon when using foreign currency

Status in OpenObject Addons Modules:
  Triaged

Bug description:
  Sorry I have to remind the Bug #388145

In new module account_anglo_saxon you will be surprised with wrong account move to cost of sale account.
It is when you sale in currency other than home one. Let say own currency is EUR. And you created invoice in USD. 
I marked it with asterisks. 

Product purchase = 10 EUR, Tax = 22% =2.20 EUR
Product sale = 26 USD, tax = 22% = 5,72 USD
Stock location configured with account 3000

Purchase a product
In the general ledger nothing is booked, there is packing line generated in Stock management to receive the goods

Receive the products
account 3000 = D 10 ← Type balance – Stock account, defined in location
account 2800 = C 10 ← Type balance – Interim account, Goods received, awaiting invoice

Receive the purchase invoice
account 2800 = D 10
account 1612 = D 2,20 ← Type balance – Vat account to receive
account 1500 = C 12,20 ← Type balance – Creditor account

Sell product
In the general ledger nothing is booked, there is packing line generated in Stock management to send the goods

Deliver product
account 3000 = C 10 Stock account
account 2801 = D 10 Type balance – Interim account, Goods send, to invoice - account defined in "Stock Output Account" in product category

Invoice customer
****account 2801 = C 7,69 **** should be 10,00 account defined in "Stock Output Account" in product category
****account 7000 = D 7,69 **** should be 10,00 Type P/L – Cost of sales - I still don't know where this account should be set.

account 8000 = C 20,00 (converted from USD) Type P/L Sales account
account 1602 = C 4,40 (converted from USD) Type balance – Vat account to pay
account 1300 = D 24,40 (converted from USD) Type balance Debtor account

Move to cost of sales is converted like USD to EUR but it shouldn't be because Cost prise is already in EUR.
By the way can someone tell me where the account 7000 in above case should be defined. Because in my configuration this amount gets back to 3000.