Understanding Alternate Currency Payments

An alternate currency payment is a payment that is in a currency different from the foreign or domestic currency of a voucher.

In this example, the company base currency is CAD. You can:

• Issue a EUR payment to pay the domestic amount of voucher 225 (CAD).

  Note: If a voucher is domestic-only and the payment is not domestic, the payment is considered an alternate currency payment, not a foreign currency payment.

• Issue a JPY payment to pay the foreign amount of voucher 226 (USD).

  In both cases, the base currency of the company is the same as the domestic currency of the vouchers; therefore, the system enables you to issue payments in an alternate currency.

Review the currencies of the following vouchers:

• Voucher number 225

  Domestic currency for voucher: CAD

  Foreign currency for voucher: CAD

  Alternate currency payment: EUR

• Voucher number 226

  Domestic currency for voucher: CAD

  Foreign currency for voucher: USD

  Alternate currency payment: JPY

The payments, which are not in the foreign or domestic currency of the vouchers, pay the domestic (CAD) and foreign (USD) currency amounts of the vouchers. A gain or loss might be calculated if the exchange rate changes between the time that the voucher was entered and the time that the payment is issued.