Process Foreign Currency Payment in Business Central

Suppose there is an invoice capture in foreign currency for USD1,200 in Apr’22, the system posted Local Currency of MYR5,064 using the exchange rate in Apr’22. When come to the payment period in May’22, the USD rate charged by the bank for the payment is MYR4.60, which equivalents to MYR5,520.

Page: Payment Journals

1. The Bank Exchange Rate can be entered in the Edit – Change Exchange Rate option button which just next to the Currency Code field.

2. Apply the foreign currency payment to invoice via Apply Entries.

3. Select Preview Posting > Detailed Vendor Ledger Entry to view the converted amount in Local Currency.

4. The payment process has reversed the Unrealised Exchange Loss which perform using Adjust Exchange Rate job during the prior months. (Follow this link if you need to know how to perform Adjust Exchange Rate to calculate Unrealised Exchange Gain/Loss.)

5. Since the LCY rate applied is higher than the original invoice amount, BC will automatically post the additional cost as Realised Exchange Loss of MYR456.

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