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EFT file for foreign currency transactions

Yes, it is possible to generate an EFT (Electronic Funds Transfer) file in a foreign currency in the Australian version of Business Central.

The process involves ensuring that the necessary configurations are in place to handle foreign currency transactions and generating the EFT file accordingly:

1. Configure Bank Account for EFT in Foreign Currency

Step 1: Set Up Bank Account

Navigate to Bank Accounts:
- Go to Bank Accounts from the search bar or navigate through Cash Management > Bank Accounts.
Select or Create a Bank Account:
- Select the bank account you will use for the EFT.
- If necessary, create a new bank account by clicking New and entering the required details.
Configure Bank Account for Foreign Currency:
- In the Bank Account Card, set the Currency Code to the foreign currency (e.g., USD).
- Ensure other required fields are correctly filled out, including SWIFT Code, IBAN, etc.

Step 2: Set Up EFT File Format

Navigate to Bank Account Card:
- In the Bank Account Card, navigate to the Transfers tab.
Select EFT File Format:
- Set the Bank Export/Import Setup Code to the appropriate EFT format for your bank that supports foreign currency.

2. Configure Vendor for Foreign Currency Payments

Step 1: Set Up Vendor Card

Navigate to Vendors:
- Go to Vendors from the search bar or navigate through Purchases & Payables > Vendors.
Select or Create a Vendor:
- Select the vendor you will be paying in foreign currency.
- If necessary, create a new vendor by clicking New and entering the required details.
Configure Vendor for Foreign Currency:
- In the Vendor Card, set the Currency Code to the foreign currency (e.g., USD).
- Ensure other required fields are correctly filled out, including Payment Method Code and Payment Terms Code.

3. Process Foreign Currency Transactions

Step 1: Create Purchase Invoices

Navigate to Purchase Invoices:
- Go to Purchase Invoices from the search bar or navigate through Purchases & Payables > Purchase Invoices.
Create a New Purchase Invoice:
- Click New to create a new purchase invoice.
- Select the vendor configured for foreign currency payments.
- Enter the details of the purchase invoice, ensuring the amounts are in the foreign currency (e.g., USD).
Post the Purchase Invoice:
- Once the invoice details are entered, post the invoice.

Step 2: Make Payment

Navigate to Payment Journals:
- Go to Payment Journals from the search bar or navigate through Cash Management > Payment Journals.
Create a New Payment Journal Line:
- Click New Line to create a new payment journal entry.
- Select the vendor and apply the payment to the posted purchase invoice.
- Ensure the payment amount is in the foreign currency (e.g., USD).
Post the Payment Journal:
- Once the payment journal entry is complete, post the payment.

4. Generate EFT File

Step 1: Prepare EFT File

Navigate to Export Payments:
- Go to Export Payments from the search bar or navigate through Cash Management > Export Payments.
Select the Payment Journal:
- Select the payment journal batch that contains the foreign currency transactions.
Generate EFT File:
- Click Export to generate the EFT file.
- Ensure the file format selected supports foreign currency transactions.

Step 2: Verify and Submit EFT File

Download the EFT File:
- Once the EFT file is generated, download it to your local system.
Verify File Details:
- Open the EFT file and verify that the transactions are correctly listed in the foreign currency (e.g., USD).
Submit to Bank:
- Upload the EFT file to your bank’s online banking portal or submit it as per your bank’s requirements.

Important Considerations

Bank Compatibility: Ensure that your bank supports EFT files with foreign currency transactions.
Exchange Rates: Ensure that exchange rates are correctly maintained in Business Central to accurately reflect the foreign currency amounts.
Bank Fees: Be aware of any additional bank fees or requirements for processing foreign currency transactions.

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