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Posting EUR Payment Entry for USD Purchase Invoices

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Hello!

May I ask how to post a payment entry in EUR for invoices that are in USD?

These are the steps I'm taking.

1. Select Vendor. (Currency defaults to USD as the Vendor default is USD)
2. Select Bal Account Type: Bank Account
3. Bal Account No: EUR Account
4. After previous step, the Currency field of the Payment Journal line becomes EUR.
5. Select Document No. to apply entry to.

I get the following error after:

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Dynamics 365 Business Central

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Yi Yong 2,555 Super User 2025 Season 2 on at

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Hello,

The "Currency Code" in the journal line will be used for both Account No. and Bal. Account No.

In your case, you will need to create a separate Line for the bank account so you will be able to

Dr Vendor (USD)

Cr Bank (EUR)

while making sure the Amount LCY net to zero.

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CU27090506-0 122 on at

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Hello!

I'd like to add that LCY is also in a different currency.

LCY: PHP

PO and Invoice : USD

Payment: EUR

How to go about this scenario?

Thank you!

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Sumit Singh 10,079 on at

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Hi,

I think you can enable the option of "Application between Currencies" option on Purchase & payables set up.

Mark the Boolean true “Does this answer your Question” if this is Helpful.

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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Hi, hope the following can give you some hints.

Dynamics 365 Business Central: How to disable Application of Ledger Entries in Different Currencies (Appln. between Currencies)

https://yzhums.com/38907/

Thanks.

ZHU

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Sohail Ahmed 11,136 Super User 2025 Season 2 on at

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In Business Central, the Payment Journal can only handle one currency code per line — either the vendor currency (USD) or the bank account currency (EUR). That’s why you see the error when trying to apply USD invoices directly with an EUR bank account.

The standard way is to:

Post the vendor payment in USD (matching the invoice currency).

Let Business Central automatically handle the conversion to EUR via the bank account currency exchange rates when you post.

If you want to pay USD invoices directly from an EUR bank, you can use the Currency Exchange Rates setup to calculate the equivalent EUR automatically, but the journal line itself must stay in USD.

✅ Mark this as the verified answer if helpful.

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Khushbu Rajvi. 20,275 Super User 2025 Season 2 on at

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Keep the journal line currency = USD (vendor’s invoice currency). BC will automatically handle converting to EUR for the bank account side using exchange rates.

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Jeffrey Bulanadi 8,760 on at

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Hi,

Posting a payment in EUR against a USD-denominated purchase invoice requires careful setup of currency application rules in BC. The error you’re encountering is likely due to missing configuration in the Purchases & Payables Setup or a mismatch in exchange rate handling.

Here’s how to resolve it:

First, confirm that application between currencies is enabled. Go to Purchases & Payables Setup, and set the field Appln. between Currencies to All. This allows you to apply payments across different currencies.

Next, ensure that your Currency Exchange Rates are up to date. BC uses these rates to calculate the correct LCY and foreign currency values during application.

In the Payment Journal, when you select a vendor with USD as the default currency and choose a EUR bank account, the system will switch the journal line to EUR. This is expected behavior.

To apply the payment correctly:

Use the Apply Entries function to manually match the EUR payment to the USD invoice.

BC will calculate the exchange difference and post it to the rounding accounts defined in the Vendor Posting Group.

If you’re importing bank statement lines in EUR and applying them to USD invoices, use the Payment Reconciliation Journal. However, note that you cannot manually adjust the exchange rate in this journal — it uses the system’s exchange rate table. If your bank used a different rate, you may need to post a small adjustment entry separately.

Helpful Reference
Apply Entries in Different Currencies – Microsoft Learn
Process Foreign Currency Payments – Microsoft Learn
Payment Reconciliation Journal – Dynamics Community

If you find this helpful, feel free to mark this as the suggested or verified answer.

Cheers
Jeffrey

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