View source for AR: How can I contra the debtor and creditor that are in different currencies

'''Question :''' System does not allow to contra the records of debtor and creditor that are in different currencies at ARAP Contra. What should I do if I wish to contra Debtor (USD) USD1000 with Creditor (MYR) MYR 4500?


<u><b>Answer :</b></u>

1)	First, you must deal with both sides (companies) the amount agreed to be offset. For example: Debtor offset USD1000, Creditor offset MYR 4500.

2)	Create <span style='color:red'>A/R Credit Note USD 1000</span> for the Debtor A/C to knock off outstanding invoice. For the <span style='color:red'>“Debit Account”</span> you may choose <span style='color:red'>Contra Account</span> and tick <span style='color:red'>‘Is Credit Journal’</span>. The <span style='color:red'>currency exchange rate</span> is <span style='color:red'>4.5000</span> (Calculation = 4500/1000) as agreed.

[[File:Arapcontra1.jpg]]


3)	Create <span style='color:red'>A/P Credit Note MYR 4500</span> for the Creditor A/C to knock off outstanding invoice, For the <span style='color:red'>“Credit Account”</span> you may choose <span style='color:red'>Contra Account</span> and tick <span style='color:red'>‘Is Credit Journal’</span>. 

[[File:Arapcontra2.jpg]]


4)	You may view ledger report of the debtor, the creditor and the contra account, to make sure the offset amount is correct. 

[[File:Arapcontra3.jpg]]


By : Soh Wee 180831, Lay Swan 180905, P180913


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