Understanding Foreign Currency Payments

A foreign currency payment is a payment that is in the same currency as the foreign currency of the voucher.

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

• Issue a EUR payment to pay the foreign amount of voucher 223 (EUR).

• Issue a USD payment to pay the foreign amount of voucher 224 (USD).

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

Review the currencies of the following vouchers:

• Voucher number 223

  Domestic currency for voucher: CAD

  Foreign currency for voucher: EUR

  Foreign currency payment: EUR

• Voucher number 224

  Domestic currency for voucher: CAD

  Foreign currency for voucher: USD

  Foreign currency payment: USD

The payments, which are in the foreign currency of the vouchers (EUR and USD, respectively), pay the foreign amounts of the vouchers. A gain or loss might be calculated if the exchange rate changes between the time the voucher was entered and the payment is issued.