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Posted on by JH-23071029-0

Customer paid USD50,000 (SGD65,500 based on system rate) to our USD Bank account as down payment, to be used to apply any sales invoices (SGD & USD) that comes along the way.

1. Cash receipt of USD50,000 have been posted to customer's ledger with no invoice allocation made.

2. There are now posted sales invoices for this customer which consist of both SGD & USD. For SGD invoices, there's an agreement with customer that 1.35 rate shall be used.

Question: how to allocate posted sales invoice of SGD6,000 (USD4,580.15 system rate) using USD4,444.44 (converted using agreed rate of 1.35), such that the cash receipt balance will be 45,555.56 after allocating the SGD invoice.

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JH-23071029-0 13 on at

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Customer receipts

My entity's base currency is in SGD. My problem here is that there's a separate agreed rate with the customer when knocking off the SGD invoices against the USD payment.

1. Payment of USD50,000 SGD65,500 posted in the system based on the currency exchange rate set in the system.

2. When USD Sales invoices are posted, it's using the exchange rate at posting date set in the system.

3. When SGD Sales Invoices are posted, there is no exchange rate conversion since our currency is SGD.

Example:

1. Payment posted in Oct USD50,000 SGD65,500 (system exchange rate of 1.31 for Oct)

2. USD Sales Invoices posted in Nov USD30,000 SGD39,600 (system exchange rate of 1.32 for Nov)

3. SGD Sales invoices posted in Dec SGD25,000 (no exchange rate as base currency is SGD)

Agreement with customer - USD50,000 converted at 1.30 (SGD65,000) to settle the above invoices (Point 2 & 3).

Seems to me that the only way is to post a journal manually to capture the exchange differences.
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BillurSamdancioglu 15,791 Most Valuable Professional on at

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Customer receipts

Hi,

Please check this link below.

https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/specify-cross-rate

If you have any questions regarding to the link, please inform.
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saurabh bharti 15,039 Super User 2024 Season 2 on at

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Customer receipts

Hi,

1. What is the Legal entity currecy ? (Accounting)-Assuming USD

2. What is the customer currency?-Assuming SGD

When you will make payment it will be in SGD because of customer currency (Will be converted in USD based on exchange rate)

Now all your invoices are also in SGD , so you can easily settle them

If there is any exchange rate difference is there it will be posted automatically and also during revaluation it will try to adjust
André Arnaud de Cal... 291,431 Super User 2024 Season 2 on at

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Hi Jackquelynne,

What is the accounting currency for this legal entity? When posting the customer payment, did you set a fixed exchange rate? What would be the expected voucher transactions for the payment, invoice posting (both USD and SGD) and settlement of the invoices (USD and SGD)?