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Multiple Foreign Currency Transactions

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Posted on by CU27090506-0 7
Can someone please explain to me how Business Central process multiple currency exchange for one transaction when:
LCY is different from AP Setup and Payment
 
LCY : PHP
AP Setup : USD 58.527
Posted Payment: EUR 62.3596
 
 
Purchase Invoice and General Ledger Entries in USD
Posted Payment in EUR
 
Posted Purchase Invoice: 3,280.50 (USD)
in LCY: 191,997.824
 
Posted Payment in LCY: 211,787.64
 
 
 
 
Why is the Debit Amount (LCY) on the Vendor Ledger Entry different from the GL Entry? (191k vs 211k)
Where did the 7,216.97 Realized Gain come from?
 
I hope someone can help me with this concern..
 
Categories:
Financial Management
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 22,226 Super User 2024 Season 2 on at
    Multiple Foreign Currency Transactions
    When you post an invoice, the system uses the exchange rate for the invoice date. Later, when you pay the invoice, it uses the exchange rate for the payment date. Based on your screenshots, the invoice posted an amount of 191,997.824 in local currency, but the payment was for 211,787.64. The difference between these amounts represents the realized gain or loss, while the USD amount remained the same in both instances.
     
    To clarify, since the invoice was posted in July and the payment was made in October, different exchange rates apply, leading to the gain or loss.
     
  • Yi Yong Profile Picture
    Yi Yong 806 Super User 2024 Season 2 on at
    Multiple Foreign Currency Transactions
    Hello,
     
    Can you provide the USD exchange rate on 10/1/2024 where the payment was posted?

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