Handle foreign-currency payments and differences
Quick summary: Match the original currency amount and let the configured accounting process handle exchange differences.
Check and reconcile
Section titled “Check and reconcile”- Open the invoice or bill and verify its currency, date, original amount, and remaining amount. The company-currency value uses the applicable rate.
- Import the actual bank transaction into the correct journal. Check its currency and amount, including any separately identified fee.
- Match the existing payment or invoice through bank reconciliation. Do not replace the original invoice amount with the bank’s converted amount.
- Review any exchange-difference entry generated by reconciliation. Check the remaining open amount, especially for partial payments.
- If a fee remains, assign only the documented fee to an approved account. Ask accounting to investigate unexplained differences.
A change in exchange rate is different from a short payment. For example, full settlement of a USD invoice can have a different EUR value on the payment date while leaving no USD debt. An unpaid USD balance remains an outstanding obligation.
Exchange-gain/loss accounts and currency-rate sources require accounting configuration. Period-end revaluation of open items is a separate accounting task; it does not mean those invoices have been paid. Do not change rates on old documents to eliminate a difference.