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- USD vendor Invoice $206,031.36
- Payment from EUR Bank account: €180,775.57
- Business Central Comany is LCY = GBP
I have followed this process -
- Payment from EUR Bank account: €180,775.57
- Business Central Comany is LCY = GBP
I have followed this process -
Recommended Method: Payment Journal
The most accurate method is using the Payment Journal to manage the conversion.
- Open Payment Journal and enter a line for the supplier.
- Select Vendor: Set the Account Type to Vendor and select the supplier. The currency will likely default to USD.
- Applies-to Doc. No.: Select the specific USD invoice(s) to apply the payment against.
- Balance Account: Set the Bal. Account Type to Bank Account and select your EUR Bank Account.
- Let BC Convert: As soon as you select the EUR bank account, the journal line currency may switch to EUR. BC will automatically convert the USD invoice amount to EUR based on the exchange rate table.
- Adjust Amount (if needed): Verify the Amount (in EUR) matches what was actually deducted from your bank statement. If the bank used a different exchange rate, you can edit the Currency Factor field to match the exact bank rate, ensuring realized gains/losses are booked correctly.
- Post: The payment will reduce the vendor's USD balance, decrease the EUR bank account, and post the difference to the realized exchange rate gain/loss account.
There is now a residual balance on the Vendor Account.
If I create a general journal to clear this and move it to FX Gains/Loss Account then this entire transaction flow does not record anyFX gain & loss from the Invoice and payment.
Any ideas on how to capture this correctly in Business Central?
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