How to apply difference in exchange rate between invoice and payment?

Janet Berry

Hello,


I'm relatively new to FE NXT. Can anyone tell me how to process in Payables when there is a difference in the exchange rate between the Invoice and the Payment (made by ACH).


Thanks so much.


Janet Berry

Wendy Croker

My thought would be to enter an invoice or credit note for the difference, allocated to the account you use for gain/loss on exchange.  Then you would be able to process the payment to pay off both invoices (or apply the credit to the original invoice and then process the payment).


I don't know of any other option that isn't manual so hopefully it doesn't happen too often. 

Janet Berry

Thanks, Wendy, I appreciate it. This will happen monthly, but only a few transactions per month.


Janet

Sylvia Cook

Probably many ways to handle it. I record the payment using the amount to clear AP, and then in the bank reconciliation make a bank adjustment for the foreign exchange difference.