Recording a foreign currency payment follows all the same steps as a local currency payment. Refer to Entering a Payment for additional information.   

Foreign Currency Payments are created in the Payment module for three types of foreign currency (FC) transactions: 

Bank Account Currency	Purchase Invoice Currency
Local Currency	Foreign Currency
Foreign Currency	Same Foreign Currency
Foreign Currency	Local Currency

Foreign Currency Setup 

To record a foreign currency payment, an adjustment must be made in the Variation field of the Payment module to account for fluctuations in exchange rates. Exchange rates may be set by the System Administrator. See Foreign Currency.  

How to Record a Foreign Currency Payment from a Local Bank Account 

Select the bank and find the foreign currency Supplier by clicking the arrow next to the Creditor field. Enter the payment details. The Local Value field is the amount being paid from the local bank account, the Foreign Value field is the amount being paid against the foreign invoices. Press the tab key to automatically calculate the foreign currency value using the current system exchange rate. If, after entering in the Local Value, the calculated foreign currency amount paid is incorrect, enter the amount directly into the Foreign Currency Total Value field. Press the tab key to automatically recalculate the exchange rate. Alternatively, altering the foreign exchange rate will recalculate the Foreign Value field.  

Steps 4 – 6 are unchanged in the process, but depending on the exchange rate, there may be a variation that will be recorded. In the above example, the invoice was recorded at .77000. So effectively, the invoice originally recorded 800.00 USD as 1,038.96 CAD, meaning Moveware recorded 1,038.96 CAD in expenses. Upon payment, that same 800.00 USD is being recorded as 1,000.00 CAD meaning Moveware over estimated expenses by 38.96. This payment will reduce expenses automatically by that amount, creating a journal entry to the Exchange Variation account:  

How to Record a Payment on a Foreign Currency Invoice from a Bank Account with the Same Foreign Currency: 

Recording the payment is done using the standard steps, but there is a foreign currency which will determine the local valuation on the journal entry. In the above example, invoice was recorded at 0.77, receipt recorded at 0.80 resulting in a variation:  

How to Record a Payment on a Local Currency Invoice from a Foreign Bank Account: 

Select the foreign bank and find the local currency Supplier by clicking the arrow next to the Creditor field. Enter the payment details. The Foreign Value field is the amount being paid from the foreign bank account, the Local Value field is the amount being paid against the local invoices. Press the tab key to automatically calculate the local currency value using the current system exchange rate. If, after entering in the Foreign Value, the calculated local currency amount paid is incorrect, enter the amount directly into the Local Currency Total Value field. Press the tab key to automatically recalculate the exchange rate. Alternatively, altering the foreign exchange rate will recalculate the Local Value field.  

Note: Moveware is only able to utilize one foreign currency at a time. Recording a payment on a foreign currency invoice from a different foreign currency bank account will need to be done through a local currency clearing account.  

Record the payment on the foreign currency invoice to a local currency clearing account:  

 
 
 

Record a bank transfer from the foreign currency bank account to the clearing account, ensuring that the local amount in the clearing account is the same as the receipted amount (resulting in a 0.00 balance in the clearing account):  

In the above example, the end result would be 600.00 GBP being used to pay 770.00 USD off the invoice. The Clearing Account would result in a zero balance.  

---