Finance | Project Operations, Human Resources, ...

Payment of USD Vendor from AUD Bank Account

(0) Share

Report

Posted on by simonsmith101

We have paid (in this example) a single USD Invoice of $5000 from our AUD Bank account. Our Bank has debited us AUD 6944.44. What is the optimal way to record this payment in D365.

Should we create a vendor payment with offset AUD Bank Account for amount AUD 6944.44 and in the settle line pick fully settle?

I am asking because if we do it this way it creates an "UNREALISED" gain/loss when it should really be a realised gain/loss?

Would welcome some advice on the correct way to process this transaction

Thanks

I have the same question (0)

All responses (3)

Answers (0)

ToddB Microsoft Employee on at

Like (0)

Report
Copy link

Link copied!

Hi Simon,

Does the below thread help?

Payments in foreign currency best practices

community.dynamics.com/.../payments-in-foreign-currency-best-practices

Was this reply helpful? Yes No
Suggested answer

Gaurangkumar Jani 4,554 User Group Leader on at

Like (0)

Report
Copy link

Link copied!

Hi Simon,

It's standard practice to post a Payment journal after receiving payment confirmation from the bank as sometimes we don't know what exchange rate the bank will apply and how much charges will be debited to the account.

In this type of case, we normally update the payment journal with the actual exchange rate received from the bank and settled against the invoice.

Select the invoice from the Settele transaction and select the currency as "USD" and select offset AUD bank and post the transaction.

You will see that system will take "Realized Exchange Gain/Loss" and not unrealized.

Let us know if this helps you.

Thanks,

Was this reply helpful? Yes No
Suggested answer

saurabh bharti 15,045 Moderator on at

Like (0)

Report
Copy link

Link copied!

Hi Simon,

You can just select "USD" invoice and change currency to "AUD" on payment line. System should pickup the exchange rate based on setup.

Generally this kind of transactions post "Realize loss/Gain" not Unrealize. I

Was this reply helpful? Yes No