AP Bills in Foreign Currencies: Generated Transactions
To be able to process AP bills in a foreign currency, you create and process a bill and a payment. To update vendor balances, the system generates the GL transactions described in the following sections.
Transaction Generated for an AP Bill
When you create and release a one-line bill, the following transaction will be recorded to the general ledger when the bill is released.
| Account | Debit | Credit |
|---|---|---|
| Accounts Payable account | 0.00 | Amount |
| Expense account | Amount | 0.00 |
You can view the reference number of the GL batch on the Financial tab of the Bills and Adjustments (AP301000) form.
Transactions Generated for a Bill Payment
When you create and release a payment in a foreign currency and the currency rate of the payment is greater than that of the bill, the system generates the following GL transaction.
| Account | Debit | Credit |
|---|---|---|
| Cash account | 0.00 | Amount |
| Accounts Payable account | Amount + realized gain amount | 0.00 |
| Realized Gain account | 0.00 | Realized gain amount |
When you create and release a payment in a foreign currency and the currency rate of the payment is less than that of the bill, the system generates the following GL transaction.
| Account | Debit | Credit |
|---|---|---|
| Cash account | 0.00 | Amount + realized loss amount |
| Accounts Payable account | Amount | 0.00 |
| Realized Loss account | Realized loss amount | 0.00 |
You can view the reference number of the GL batch on the Financial tab of the Checks and Payments (AP302000) form.