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Payables

Posted: Tue Jul 08, 2008 3:46 am
by segu_tulasi55
Functional currency is INR
BANK- USD
Invoice & Payment #8211; UK
How can u make payments what r the a/cing entries for it?

Posted: Tue Jul 08, 2008 7:39 am
by byswamy
Invoice(USD)

first scenario; PO-inv(same exchange rate)
AP Accrual A/c 1000
laibility A/C 1000

second senaria: different exchange rate

PO rate variance defaults from financial option

AP Accrual A/C 1000
PO Rate variance A/C gain 10
Liability A/C 1100,

Loss
AP Accrual A?C 1000
PO rate variance loss 10
Liability A/C 9990

If the excahnge rate is different b/w the invoice and payment

This account default from bank

take same senario for payments also


Thanks
Swamy