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Hi All,
I would like to reverse a Payment journal entry which is a foreign currency payment. I don't remember the exact steps.
I remember, we need to create a Cash Receipt journal to do the adjustment.
Kindly request you all to provide some steps on achieving it.
Local Currency - SGD, Bank Account - SGD, Payment - USD.
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[quote user="Saravanan"]
I would like to mention the steps here, so that you can correct me if anything need to be included:
1. Unapply the Payment from the Invoice.
[/quote]
OK
[quote user="Saravanan"]
2. Go to Cash Receipt, create a refund entry and select the vendor and then the balancing account as Bank Account. Also, make sure the posting date and the currency exchange rate is correct compared to the old payment journal.
[/quote]
OK. Cash Receipt, Payment Journal or General Journal
[quote user="Saravanan"]
3. Apply the incorrect Payment entry over the correction entry and post it.
Here, I have a problem as well. There is no Realization Gain/Loss shown while doing the Preview Posting.
[/quote]
That's correct. The revert of the FX Gain/Loss was posted as you unapplied the Payment from the Invoice. You should see it when you run Navigate on the Ledger Entry of the Invoice.
The Posting Date of the Invoice is used to calculate the difference between the FX-rates.
(FX Rate of Invoice Date - FX Rate of Payment Date = Gain or Loss)
Hi Hannes Holst,
Thanks for the reply.
I unapplied and as it is involving foreign currency, couldn't reverse it.
I would like to mention the steps here, so that you can correct me if anything need to be included:
1. Unapply the Payment from the Invoice.
2. Go to Cash Receipt, create a refund entry and select the vendor and then the balancing account as Bank Account. Also, make sure the posting date and the currency exchange rate is correct compared to the old payment journal.
3. Apply the incorrect Payment entry over the correction entry and post it.
Here, I have a problem as well. There is no Realization Gain/Loss shown while doing the Preview Posting.
Can you guide whether i'm missing anything.
Thanks in advance.
hi,
Unapply the payment from the invoice first.
Then try to reverse the payment ("Reverse Transaction" in Ledger Entries).
If this is not possible you must enter a corrective payment journal (Refund) against the Bank Account. Make sure the Posting Date is the same (for Currency Exchange Rate).
When the balance is back on the bank account, you can create a new payment journal and apply it to the invoice.
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