Muti currency payments

Jayasree · Post by **Jayasree** » Tue Jul 08, 2008 7:42 pm

hello Gurus,

Just need help to understand the concept of muticurrency payments in Payables.

is it posible o have invoice in one currency and make payment in a different currency..?

If not how is this situation handled..? how can we apply the invoice and payment in this situation..?

What is the use of having Multi currency payment enabled in the bank ..?

Thanks ..

Murthyoracle · Post by **Murthyoracle** » Wed Jul 09, 2008 3:18 am

Hi Jaya,

In Payables, Invoice Currency and Payment Currency should be same. If diffrent currecny , it is not possible.

First u have to define rates, next in payable option -> Currecny tab , enable Multi Currency chek box, select in payment format enale Multi Currecny Check Box and Bank Accounts -> More payable option enable multi currency payment check box. Next Enter invoice in foreing currecny and select same currecy in Payment form .

Next my suggestion is, already this question was posted several times. Go to search field enter your required querry and select ERP stuff.com and search you will find already posted querries and solution . Follow this procedure before posting any question so that it will save your time and as well as other folks time also and their is no meaning for giving answer for repetitive question.

So take in a positive way and follow before posting.

thanks and regards,

Jayasree · Post by **Jayasree** » Wed Jul 09, 2008 5:43 am

Thanx Murthy..
Will surely do that..

But just 1 question , which I searched and could not find any suitable posts.

In receivables , I don't think there is this restriction. right..?
That is , Transaction currency and Receipt currency can be different and we can also apply..
Please explain..

kkmundhra · Post by **kkmundhra** » Wed Jul 09, 2008 5:54 am

Hi Jayasree

In payables both the invoice currency & payment currency must be same. However if you want to make a payment in other than invoice currency then there is a work around for that which is illustrated below.

1. Invoice - 4000 INR
2. Payment to be made in USD
3. Raise a DM for 4000 INR & apply to original invoice.
4. Assuming as on date of payment Ex rate is 1 uSD= 40 INR raise a dummy invoice for 100 USD & make the payment in USD

With regard to receivables the transaction currency & receipt currency can be different.

Hope this helps.

Thanks

Karan

Jayasree · Post by **Jayasree** » Thu Jul 10, 2008 12:04 am

Hi Karan,

Thanks for the workaround info..

Just to understand the details of the receipt application in Receivables..
If the transaction currency and Receipt currency is different how does the application being dealt and how the exchange rate difference is being dealt..? what are the accounting entries then..?

Regards,
Jayasree

Murthyoracle · Post by **Murthyoracle** » Thu Jul 10, 2008 1:13 am

Hi Karan,

and Jaya Sree

Thanks for your reply. But unfortunately , i am not clear. Why you have raised Ist Std. invoice with INR and DM with INR . And again you have proposed 2nd Std. Invoice ( Dummy) with USD and paid in US Currency. However you have raised the Dummy invoice in US only and paid in US Currency. How it will be treated as Cross currency.

Can u clear me.

Thanks and regards,
Murthy oracle.

kkmundhra · Post by **kkmundhra** » Thu Jul 10, 2008 2:48 am

Hi Murthy

I have raised the first standard invoice as it is the original invoice sent by the supplier. On the date of payment the supplier asks us to pay in currency other than the invoice currency. For that purpose I have raised a DM against original invoice, raise a dummy invoice in payment currency & make the payment. This is not treated as cross currency. This is just a work around as per the client?s requirement.

Hope it is clear now.

Thanks

Karan

nagaramesh · Post by **nagaramesh** » Thu Jul 17, 2008 2:36 am

Hi Karan,

Thanks 4 the work around, but I hav a tipical situation in the same scenario. i.e. my client wants to pay a single invoice in 2 different currency payments (some cases both pmt currencies differ from inv currency).

could u suggest me in this regard.

nagaramesh

nagaramesh · Post by **nagaramesh** » Thu Jul 17, 2008 2:41 am

[quote]Hi Karan,

Thanks for the workaround info..
Hi Jayasree,

I can give a simple clarification i.e. when ever transaction currency differ from Rect curr. it is called as cross currency. this facility available only in AR. So in that case we need to define only Balance (suspense) a.c. in GL. this is useful to offset the entered currency balances in ledger currency and system is calculating the cross currency rate, if any gain / loss is thr.

This balance a.c. is nothing but to equal the transaction currency & receipt currency.

floks pls add more...

cheers
nagaramesh

Just to understand the details of the receipt application in Receivables..
If the transaction currency and Receipt currency is different how does the application being dealt and how the exchange rate difference is being dealt..? what are the accounting entries then..?

Regards,
Jayasree

<i><div align="right">Originally posted by Jayasree

kkmundhra · Post by **kkmundhra** » Thu Jul 17, 2008 8:47 am

Hi Nagaramesh

In that case you can raise 2 dummy invoices in different currencies & carry on with the payment.

More ideas folks

Thanks
Karan

nagaramesh · Post by **nagaramesh** » Thu Jul 17, 2008 9:05 am

Hi Karan,

I suggested the same 2 my client, but he was not happy to break the Invoice.....z dr any alternative..........

thanks
nagaramesh

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Muti currency payments

Muti currency payments

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