Multicurrency Payment of Invoices: Generated Transactions
To be able to pay an AR invoice in a foreign currency by using the base currency or another foreign currency, you create and process an invoice and a payment. To update customer balances, the system generates the GL transactions described in the following sections.
Transaction Generated for an AR Invoice
When you create and release a one-line AR invoice, the system generates the following GL transaction.
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable account | Amount | 0.00 |
| Sales Revenue account | 0.00 | Amount |
| Rounding Gain/Loss account | Rounding loss amount | Rounding gain amount |
You can view the reference number of the GL batch on the Financial tab of the Invoices and Memos (AR301000) form.
Transactions Generated for an Invoice Payment
When you create and release a payment in the base currency, which was converted at a currency rate greater than that of the invoice, the system produces a positive RGOL amount and generates the following GL transaction.
| Account | Debit | Credit |
|---|---|---|
| Cash account | Payment amount | 0.00 |
| Accounts Receivable account | 0.00 | Invoice amount |
| Realized Gain account | 0.00 | Realized gain amount |
When you create and release a payment in the base currency, which was converted at a currency rate less than that of the invoice, the system produces a negative RGOL amount and generates the following GL transaction.
| Account | Debit | Credit |
|---|---|---|
| Cash account | Payment amount | 0.00 |
| Accounts Receivable account | 0.00 | Invoice amount |
| Realized Loss account | Realized loss amount | 0.00 |
You can view the reference number of the GL batch on the Financial tab of the Payments and Applications (AR302000) form.