Setup steps for foreign currency payments

Setup steps for foreign currency payments (for foreign currency invoices). Foreign currency payments can be made through

1.Bank account maintained in functional currency but multi-currency enabled and relevent payment document attached. (In this case the payment transaction will be only in the foreign currency though converted to functional currency for accounting purpose.)

2.Bank account maintained in foreign currency with relevent payment document attached.

Steps

1.Enable use multi-currencies option at financial options of payables in the currencies region.

2.Create a payment format which has multiple currency radio button enabled.

3.Create a bank and bank account.Enable Multicurrency payments in the bank account at payment options region.

4.Attach the format created in step2 at the documents screen of the bank account.

5.Create an invoice in a foreign currency,validate it and ensure there are no holds.

6.Pay the invoice through any of the three options:
a.Through invoice work bench
b.quick payments
c.Batch payments

7.In any of the options,enter the bank account created in step 3 and enter the document created in step4.

8.a invoice workbench
IF done through this,already payment is referenced to the invoice and so you need to enable the format and print only and click ok.

b.quick payments
Here you may have to enter suppier name,site and click the invoices button and choose the invoice created in step5,click ok,and then enable format and print.

c.payment batches
In this case,system will pick up the invoice if all entered conditions in the batch are satisfied.Otherwise you can force the invoice for payment.After formatting and printing the batch,confirm the batch in order to release the document for future.

Examples

1. After doing setups upto step 4,create a foreign currency invoice.For example vision operations has USD as functional currency and so create an invoice in GBP/SGD.

2.When payment is done through any of the three options,it could be seen that payment currency will always be GBP/SGD.Try changing the payment currency as USD,system will not permit.

Conclusion

In all the above three scenarios,you may find that the payment currency field will be showing only the invoice currency and you cannot enter any other currency there(Euro could be an exception) which substantiates the point that payment currency will always be same as invoice currency.