Multiple currency
This example shows the general ledger transactions created from a nonbase currency invoice paid with a different nonbase currency payment. Assume this information about the sample invoice and currencies:
| Invoice amount in base currency | 1,500.00 (USD) |
| Invoice amount in invoice currency | 1,000.00 (GBP) |
| Invoice amount in bank account currency | 7,600.00 (FRF) |
| GBP to USD exchange rate on invoice date | 1.500 (multiplier) |
| GBP to USD exchange rate on payment date | 2.000 (multiplier) |
| GBP to FRF exchange rate on payment date | 7.600 (multiplier) |
Invoice Distribution Closing (AP175) Transactions
This program creates general ledger entries for accruing the invoice liability.
| Account Description | Debit | Credit |
|---|---|---|
| Expense Account | 1500.00 (USD) | |
| Accrual Account | 1500.00 (USD) |
Payment Closing (AP170) Transactions
After the invoice is paid, this program creates general ledger entries for the cash payment and creates a realized gain or loss general ledger transaction in the company base currency to reflect any exchange rate change between the invoice date and payment date.
| Account Description | Debit | Credit |
|---|---|---|
| Accounts Payable | 1500.00 (USD) | |
| Realized Loss | 250.00 (USD) | |
| Cash | 7600.00 (FRF) |