Reconciled payment journal
Hello
Anyone can explain why journal from the AP reconciled payment for foreign payment is functional currency journal?
For example:
Functional currency = USD
Invoice currency = EUR
Payment currency = EUR
Accounting entries for payment:
Dr liability xxx
Cr cash clearing xxx
This created a journal in EUR currency and can see USD amount at journal line, accounting entries as above.
When the reconciled payment is done in Cash Management, bank account currency = USD
Accounting entris are created in payment (for our case) :
Dr cash clearing
Dr balance
Cr cash
Cr balance
This created 2 journals in Reconciled Payment category.
1st journal, (journal is created with EUR currency and can see USD amount at journal line