openerp-expert-accounting team mailing list archive

["Olivier Dony \(OpenERP\)" <odo@xxxxxxxxxxx>]

On 27/04/10 15:07, Joël Grand-Guillaume @ CampToCamp wrote:
> The amount on payable / receivable account should be the exact value in
> company currency of the total invoice, otherwise you introduce a
> rounding error, even with debit= to credit

No, the difference is acceptable and due to the way the totals are
calculated in multi-currency.
IMHO there is no reason to introduce a rounding adjustment at the time
of the invoice, because this is already the responsibility of the
reconciliation process.

> This results in a rounding difference which SHOULD NOT appear in the
> payable/receivable account ! This is overall true when you'll reconcile
> this invoice... You'll introduce int the bank statement the exact amount
> in currency (here 1298.73 CHF), and OpenERP will say there is a
> difference because of the 0,01 rounding issue... it's not true from the
> user point of view ! If I invoice 1298.73 CHF and receive this exact
> amount in CHF on the same date, I expect the invoice to be reconcile
> without passing a write-off amount !!!

Why shouldn't it be the reconciliation process that creates the
write-off? It already allows this, both in manual and automated process,
and does exactly what you want as far as I can tell.

The only thing is that it could be improved to compare the amounts in
foreign currency as well (if it does not do it yet), and perhaps use a
property for the default rounding write-off account.


> That's why we discuss on the expert list the following solution:
> 
> - For trunk : Make something perfect, adding an account properties on
> res_currency to allow a "rounding account" per company. This will be use
> to pass the 0,01 difference.

Sure, why not, if the goal is to use this during reconcile process,
improving it a bit.


> - For stable : Add or Substract the 0,01 on the biggest debit/credit
> line to have the amount balanced

This definitely sounds like an ugly hack instead of using the normal
reconcile write-off system that can perfectly serve this purpose.

I think there is no point trying to avoid having rounding differences
appear in payable/receivable accounts as they are bound to happen in
multi-currency anyway, due to exchange rate variations.

And apart from that, it seems to me that you are only going to introduce
more complication in the process with your solution.

Am I missing something?

-- 
Cannot validate invoices with foreign currency
https://bugs.launchpad.net/bugs/452854
You received this bug notification because you are a member of OpenERP
Accounting Experts, which is a direct subscriber.

Status in OpenObject Addons Modules: Fix Released

Bug description:
Hello,
have stumbled upon interesting problem. Latvian Lats (LVL) is the base currency for Accounting. Try to issue (or encode received from supplier) invoice in Euros(EUR). The same would happen between any other currencies too.

Invoice totals:
Total w/o VAT (Untaxed): 1158,00 EUR
Tax VAT 21% : 243,18 EUR
Total: 1401,18 EUR

Try to Confirm invoice and you will get "You can not validate a non balanced entry !"

Made some investigation what is wrong, and have found that the problem is.

Obviously the totals are calculated perfectly right, but as the base currency for accounting is different from the currency we are issuing invoice the accounting moves are done in the base currency, in this case LVL.

So goes the currency exchange

Total w/o VAT (Untaxed): 1158,00 EUR ->(813,8470320 ~813,85 LVL)
Tax VAT 21% : 243,18 EUR ->(170,9078767 ~170,91 LVL)
Total: 1401,18 EUR ->(984,7549087 ~984,75 LVL)

Which again are technically right, with one difference, that the totals for posting are now not dependent on each other anymore. They are being rounded before posting.

If you would issue invoice in a base currency the difference is in 0.01LVL, which is lost during rounding process. Notice the Total sum.
Example:
Total w/o VAT (Untaxed): 813,85 LVL
Tax VAT 21% : 170,91 LVL (VO_VAT * 21% = 170,9085000)
Total: 984,76 LVL (VO_VAT + VAT_21)

To deal around floating point storage in Python (as well as other programming languages), allowed difference between sums are allowed 0.0001. This is the place where postings do not pass validate(...) function in "account.py".

This is right as balance between credit and debit should be equal. What should be done - accountant would probably create write-off entry for the missing sum to make the balance right. This functionality is missing in OpenERP, and is fundamental for foreign trade.

Any ideas?

P.S. version 5.0.6.

Kaspars