Autoreconciliation for Foreign Currency Payments

Summary

How to use Autoreconciliation features to reconcile payments in foreign currencies.

Content

Hi All,

I would like to understand the recommended approach to automatically reconcile bank statement line when the payment is in a currency different to the bank account currency.

Example:

1. Business Unit XYZ has an AP Invoice for 100 GBP on 01/01/17. GBP to USD Conversion rate is 1.3, so accounted amount: 130 USD.

2. Invoice paid on 15/01/17 from a USD bank account. The conversion rate at the time of payment is 1.2, so the accounted amount 120 USD and there is a realised gain of 10 USD.

At this point, the payment becomes available in Cash Management, showing as 120 USD.