Debit and Credit not equal for Payment Entry

1

Hi,
We had placed an order on overseas vendor for a product and paid the amount in full in advance. A Payment Entry linked to the purchase order was created with Exchange rate Rs.70 for USD. When the item was received the exchange rate was 69.7 . Which means that we need to put in .30 in exchange loss.

We have created a Purchase Invoice with Exchange rate of 69.7 and linked the advance payment to it. When we are trying to save it, it is giving an error - "Debit and Credit not equal for Payment Entry". My belief was as the amount in USD is same and only exchange rate is different it should go in Exchange Rate difference Gain or Loss Account. 

Can somebody guide me what I am doing wrong?

-Amit

2

Hi All,
I have currently addressed the issue by using Exchange Rate Reevaluation tool. It created a JV using which the Exchange rate Gain or Loss account was updated. However I was not able to link the advance to the purchase invoice as the rates were different although the system kept asking me to do the same.
I feel that the issue can be easily addressed by prompting the user that there is difference between the rates and do they want to book it as exchange rate gain or loss. This will ensure that we donot have to go through the additional steps and the advance entry can also be linked with the purchase invoice.
Secondly the ledger for the vendor when checked using the company currency is all wrong and still showing the difference. I believe there is already an issue filed for this but it is becoming annoying for not being able to see whether the entries have been entered correctly and everything is correct. I believe for two currencies, account currency and company currency the data should be pulled directly from the document and not converted. This is prevent these unnecessary errors.

-Amit

1 Like
3

Please see this documentation -

https://docs.erpnext.com/docs/user/manual/en/accounts/payment-entry#4-other-cases

hope this helps, thanks

4

Hi, We also encounter this error, Could you share your steps to close the transaction?

5

@ossphinc Following link explains in detail how the issue can be resolved.
Exchange Rate Revaluation .

-Amit

6

Hi amit

i made a sales inv of 21240 Rs.

While creating a payment entry of 9000 against same sales inv. it gives error message that Debit and Credit not equal for Payment Entry against SI xxxx . the difference amount is 18000.

the error diff amount is always double of paid amount.