Question

Correct Currency Rate in Project Invoice (Handover Date of the Project)

  • 23 February 2023
  • 2 replies
  • 64 views
D
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Userlevel 3
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Dear all,

 

the IFS standard setting is that the currency rate will be taken from the invoicing date. As we are handling projects the relevant date is the handover date and not the invoice date - it is not possible to create the invoice on the same day as the handover takes place.
We are not allowed to create invoices which are dated back in the past (this will be claimed by the external and internal auditors).

 

Example, we received the handover protocol on 05/01/2023. We already made the tax reconciliation/reporting for january so we closed the period already.

The correct currency rate would be the rate from 05/01/2023 but it’s not possible to change the rate directly in project invoice.

 

How should the data set be modified in order to have the correct scenario shown in IFS?

How do you handle this scenario.


Thanks for your response.

BR Linda 
 

2 replies

A
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Userlevel 7
Badge +16

Is the requirement to use project handover date internal or legal/statutory?

Please keep in mind that the date applicable for currency calculations have impact on both revenues and tax amount calculation. Using project handover date, you will calculate your tax using that date as well. Would it be OK from legal point of view?
 

Regards, Adam
F
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Yes, it’s a legal requirement.

To fulfill the requirements we are going to create currency type with rate of handover date for each project in foreign currency.. but is there another way?

Thanks for your response.

BR Ramona

 

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