AR Invoices in Foreign Currencies: Generated Transactions
To be able to process an AR invoice in a 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 a foreign currency and the currency rate of the payment is greater than that of the invoice, the system generates the following GL transaction.
| Account | Debit | Credit |
|---|---|---|
| Cash account | Amount + realized gain amount | 0.00 |
| Accounts Receivable account | 0.00 | Amount |
| 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 invoice, the system generates the following GL transaction.
| Account | Debit | Credit |
|---|---|---|
| Cash account | Amount – realized loss amount | 0.00 |
| Accounts Receivable account | 0.00 | 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.