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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / AP in foreign Currency
Microsoft Dynamics GP (Archived)

AP in foreign Currency

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Posted on by Community Member

We are currently using GP2010, in North America.

I would appreciate any suggestions on the following problem:

We have a company with functional currency of Canadian $.

We have 2 bank accounts - US$ and Cdn$.

All local invoices in Cdn$ are paid out of the Cdn$ account.

All other invoices are paid out of the US$ account - invoices can be in US, AUD$.

AP invoices are input in source currency, ie, AUD$, in this example

On payment, I would process the transaction in AUD$, so the vendor record would clear.

However, how do I process the US$ payment amount? 

If I select the US$ checkbook, GP will not allow the payment because the currency is not the same as the Vendor's currency.  Vendor is set up only for AUD$.

If I allow US$ in my AUD$ vendor class, then the payment will be in source currency US$, but GP will not allow the payment to be applied against the AUD$ invoice.

Is there any GP functionality that will allow me to process this type of transaction?

Your suggestions would be appreciated.

Thanks.

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  • Sheri Ibbotson Profile Picture
    Sheri Ibbotson 712 on at
    RE: AP in foreign Currency

    sorry - I never saw your reply to this post until today?  I misunderstood - I assumed your functional currency was  USD..  So, I do agree with your reply...

  • Community Member Profile Picture
    Community Member on at
    Re: AP in foreign Currency

    Sheri - thank you for your response.

    However, I'd like to clarify my understanding of how GP exchange tables work:

    1.   My understanding of GP exchange tables is that foreign currency is converted to FUNCTIONAL currency.   In my  example above, Functional is Cdn$, I'm paying an invoice in Aud$, and I'm using a US$ bank account.    So if I set up an exchange table to translate Aud$ to US$, the GP company will never recognize it as a valid table because the amount is not being translated to the company's Functional currency of Cdn$.

    2.  Your second suggestion of allowing Aud$ in the US$ account - again, with the way GP exchange tables work, the AUD$ will be translated to Functional Cdn$.   The chequebook will have both US$ and Aud$ at the end of the month, which will make it impossible to do a bank rec, when trying to compare to a US$ bank statement.

    Would you agree with the above, or have I totally misinterpreted?

    Thanks.

  • Sheri Ibbotson Profile Picture
    Sheri Ibbotson 712 on at
    Re: AP in foreign Currency

    open the manual payment window - select the vendor - enter the wire amount as cash in aud$  - select the usd checkbook, enter the correct aud to usd exchange rate for the payment using the blue arrow next to the currency field.  If you click the distribution button in the manual payment window after entering all of manual payment info - you will see the correct entries are created for both currencies. Post the manual payment.  Goto the ap apply to window - select the vendor - select payment and mark the aud$ ap invoice to apply the payment to -click save and close the window.  the system with generate a gain/loss entry when you close the apply window.  Post that entry via master or financial module batch/series post.  Checkbook will show payment in USD.  If this process does not work for you - then you need to make sure the usd checkbooks general ledger account has the aud$ currency assigned to it first..  the vendor should be set with aud$  the checkbook default is set at USD..  

    with this scenario - your ap invoice was entered in AUD and your applying the payment to it in AUD - using a USD checkbook

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