EAP: Wrong Monetary Amount on Withholding Accrual APA Accounting Lines -- Argentina Localization (Doc ID 2093078.1)

Last updated on MARCH 09, 2017

Applies to:

PeopleSoft Enterprise FIN Payables Argentina - Version 9.1 to 9.1 [Release 9]
Information in this document applies to any platform.

Symptoms

When posting a payment of a voucher created in foreign currency, the accounting entries does not reflect the difference in exchange rates between creating the voucher and when paying it.

STEPS

1. Create withholding voucher in foreign currency USD with invoice date 30/09, where the exchange rate is 4.90

2. Post the voucher

3. Run pay cycle to create payment on 10/10, when the exchange rate is 4.95

4. Post payment

RESULTS

Vendor payment = 1,121.88 (USD)
Withholding = 209.12 (USD)
Total = 1,331.00 (USD) =

Vendor Payment Entries (OK):
DR Accounts Payable = 1,121.88 USD * 4.90 = 5,497.21 ARS
CR Cash = 1,121.88 USD * 4.95 = 5,553.31 ARS
DR Realized Loss = 1,121.88 USD * 0.5 (4.95 - 4.90) = 56.10 ARS

Incorrect Withholding Accrual lines calculated as:
209.12 USD * 4.95 = 1,035.14 ARS (40.84 + 31.62 + 54.45 + 326.70 + 108.90 + 472.63)

In this case, Accounts Payable balance is:
6,521.90 (post APA 1,331.00 * 4.9) - 5,497.21 (vendor payment APA) - 1,035.14 (withholding accrual APA) = -10.45 ARS
This is not correct. The balance should be zero

It is not considering variation in exchange rate (0.05 * 209.12 USD) = 10.45 ARS in withholding entries

The entries should be:
DR Account Payable: 40,43 (8.2505 * 4.90)
DR Account Payable: 31.30 (6.3878 * 4.90)
DR Account Payable: 53.90 (11 * 4.90)
DR Account Payable: 323.40 (66 * 4.90)
DR Account Payable: 107.80 (22 * 4.90)
DR Account Payable: 467.86 (95.4808 * 4.90)
DR Realized Loss: 10.45 ((0.05 * ( 8.25 + 6.39 + 11 + 66 + 22 + 95.48))
CR Withholding Liability: 40.84 (OK)
CR Withholding Liability: 31.62 (OK)
CR Withholding Liability: 54.45 (OK)
CR Withholding Liability: 326.70 (OK)
CR Withholding Liability: 108.90 (OK)
CR Withholding Liability: 472.63 (OK)



Cause

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