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Mohammed Yaseen (Querist)
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15 May 2013 Hi,

I have a client who pays in USD and also currency set in accounting software in USD with conversion rate in local currency. Client has made all the payment until date (No O/S balance), however, in local currency (conversion rate) there is still a difference showing as payable. What could be the cause. Please help me come out of this situation.

Ganeshbabu K

Ganeshbabu K (Expert)
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15 May 2013 see whether any bank charges are there if there whether it is accounted correctly
(just do reconciliation for dollars w.r.t. payment and purchases)
whether forex fluctuation booked properly

whether sales booked properly

Mohammed Yaseen

Mohammed Yaseen (Querist)
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15 May 2013 Sir, Many thanks for your reply, There are no bank charges for the transactions done. I checked the payments and purchases are booked correctly, also the forex difference has been taken care. However, all the necessary adjustments were made but still there is a difference.

Ganeshbabu K

Ganeshbabu K (Expert)
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15 May 2013 have u checked if there is any opening balance

have u done dollors wise reconciliation for inflow and out flow..
how much difference showing..

whether u have made purchases for ho many dollars u paid

Mohammed Yaseen

Mohammed Yaseen (Querist)
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15 May 2013 Yes Sir, Opening balance was there but subsequently it is been paid, dollar wise reconciliation is also made. purchases and payments are made correctly.

Mohammed Yaseen

Mohammed Yaseen (Querist)
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16 May 2013 Sir, I was trying to reconcile once again, just noticed there is an invoice which is billed twice. The difference is of invoice – exchange (I think). Tried again passing necessary JE’s but after making necessary adjustments, the ledger is showing as a balance payable. How it can be? When we have made full payment to creditor and also his foreign currency is tallying. Please advice, seriously stuck in this?

Ganeshbabu K

Ganeshbabu K (Expert)
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16 May 2013 do invoice wise- amount paid to party, forex reconciliation,

balance payable means there may be bill booked double time,

still not able to tally..
better ask ur supplier to provide our ledger copy in his books for the purpose of auditors requirement and debtor confirmation like that u say..

they may provide you ur company ledger copy in their books,..
so that mistake will be definetely get resolved..

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