Dynamics Community Forum Thread Details

Invoice and Payment in Different Currencies

We have a situation where INVOICE are in CAD and the payment is received is issued on USD bank.

When recording this the client has selected the US Bank - where the real cheque was deposited - amount 6,000 USD

But in the Cash Receipts window select CAD as the currency and the amount of 6,000

They then apply to the outstanding invoices and all is well - sort of - until they then look at the Bank Reconciliation

In Bank Recon - the 6,000 USD was recorded as 6,000 CAD and converted to (made up) 5,000 USD - reflecting the exchange loss.

What should have happened is that the client should have recorded the amount at 6,000 USD and deposited 6,000 USD

Question: How to resolve this specific issue and more importantly, how to prevent in the future.

I seem to recall sometime ago someone suggested that if you do not try to apply from the Cash Receipts window, that you can record the USD for the USD to the USD bank and then go to the Apply Receivables window and apply that USD amount - but see in CAD and apply to the CAD invoices.

I am waiting on the IT Team to get the client TEST system back up running so I can test this, but I wanted to reach out and see if I am totally wrong here before wasting too much time.

Hello all - just for closure I was able to access the TEST system and test out the conversation above - I did recall this correctly. As long as you enter the Invoice in one currency the only way to use the Apply in the Cash Receipts screen is if the deposit is in the same currency.

So what I did was - INVOICE in CAD and then Cash Receipt in USD - posted both, without applying and it worked as expected. I then used the Apply Sale Document window and selected the payment - USD - and the INVOICE that was displayed, was converted to USD and the apply worked

After posting looking at the account I see that the full amount of the CAD INVOICE was paid and the balance of the difference between the USD payment was sitting on the Customer Account.

As best I can tell the system has handled this perfectly - it is just a matter of doing the right steps.

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