A discrepancy in the "Source Currency Amount" calculation within the General Ledger Entry feature.
This issue arises specifically when journal lines are posted in foreign currency with associated VAT amounts and currency exchange rates applied. Currently, when a journal line is posted in a foreign currency with a VAT amount and a currency exchange rate is applied, the "Source Currency Amount" is not reflecting the correct values.
For instance, posted GL entry,
- Base GL Account Amount (FCY) is $100
- VAT Account amount (FCY) is $7
The "Source Currency Amount" for VAT account should ideally remain consistent at $7. However, it erroneously displays both the GL & VAT Account amount of $100, which is inaccurate and misleading.
To rectify this issue and ensure accurate financial reporting, I suggest implementing a fix where the VAT account amount' "Source Currency Amount" remains unaffected.
Comments
We have been informed that this will be fixed in version 25, "as it requires a lot of refactoring which cannot be completed in a quick hotfix." While happy that the issue will be resolved, this has resulted in an incorrect Source Currency Amount on every currency VAT G/L entry. For clients with complex VAT posting setups, this has caused massive issues when the revaluation process is run. They have to then calculate and perform their own journals to correct the revaluation's incorrect entries. For a feature that affects such critical areas of the system, and the ongoing damage this is doing to user's ledgers, it's my belief that this should be prioritised to be resolved as part of a minor hotfix update.
Category: Financial Management
Business Central Team (administrator)
Thank you for this suggestion! Currently this is not on our roadmap. We are tracking this idea and if it gathers more votes and comments we will consider it in the future. Best regards, Business Central Team