Cross Currency Payments Setup and Accounting Entries

Summary

Cross Currency Payments Setup and Accounting Entries

Content

 

Scenario 1 - JPY Invoice paying from USD bank account in USD 

1. Invoice number: JPY 1  invoice currency is entered for 100 Yen and taxes for 8 Yen.

At the Invoice entering point the invoice currency is given as Yen and the payment currency is given as USD.

 

Also need to give the conversion rate from invoice currency to ledger currency, as per below scenario it is  1 Yen = 1.5 LKR 

 

 

 

 

 

Double Entries at the Invoice Enter phase

Entered Currency 

Item expense	Dr     100
Tax Recoverable	Dr      8

Liability                 Cr   108 

Accounted Ledger Currency ( 1 Yen = 1.5 LKR)

Item expense                    Dr     150                                                

Tax Recoverable               Dr     12