Setting Up AAIs for the Clearing Account for Alternate Currency Payments
AAI item P7 defines the alternate currency clearing account used when you post alternate currency payments. The alternate currency clearing account tracks the conversion from the payment amount to the original voucher amount and provides an audit trail of the offset amounts for:
The original foreign currency voucher and the domestic side of the foreign currency voucher.
The alternate currency payment and the domestic side of the alternate currency payment.
The clearing account must be in the same company as the bank account from which the payment is made. It must include a business unit and cannot be a monetary (currency-specific) account. The alternate currency clearing account balances on the domestic side, but not on the foreign side. This is because the foreign side contains different currencies, which never balances.
The sequence in which the system searches for AAI item P7 is:
The system uses P7 that is associated with the company entered on the payment.
The system uses P7 for company 00000.
These t-accounts show entries for a foreign currency voucher (CAD), the domestic side of the voucher (USD), and an alternate currency payment (EUR).
