Foreign currency partial payment

Question

Hi Experts,
I have done the following transactions.
System: ECC6 & New GL is active
Local currency is EUR
1. created customer invoice (F-22)
invoice amount is 1000USD (foreign currency)
Exchange rate - 1.2
Local amount is 1000$ * 1.2=1200EUR
2. Created incoming partial payment (F-28)
amount is 600USD
Exchange rate - 1.3
Local amount is 600 * 1.3 = 780EUR
When I simulated this partial payment there is no exchange gain/loss item.
3. Creating incoming payment for remaining amount (F-28)
amount is 400USD
Exchange rate - 1.25
Local amount is 400 * 1.25 = 500EUR
In this document, system calculates total exchange gain/loss and created respective item.
Question: on what accounting principle, system is behaving above way?
How do I carry out this example based on IFRS if this is not the way IFRS works?
Thanks,
Sukhbold

Answer 1

Hi Sukhbold,
This is a system standered behaviors, as you are doing Partial payment clearing system is not clearing any open item here where as it creating additional line item of Dr with the new exchange rate.  So when ever you clear the rest of payment along with invoice and partial clearing documents then system will generate the exchange rate difference line item for full invoice amount.
For your understanding try with Residual clearing then you will get the Exchange rate difference line item.
Thanks
Sreenivas