Understanding Manual Payments in a Foreign Currency

A foreign currency payment is a payment that is in the foreign (transaction) currency of the voucher. You specify the foreign currency of a payment at the time you enter the payment. When you enter a foreign currency payment, these criteria must be met for the system to process the payment:

• The foreign currency of a payment must be the same as the transaction currency of the voucher.

• The base currency of the payment must be the same as the domestic (base) currency of the voucher.

For example, assume the domestic currency of a voucher is U.S. dollars (USD). The foreign currency payment you issue must be for a company with a base currency code of USD and the payment and the transaction currency of the voucher must be the same. If the bank account is a monetary account, the company currency for the bank account must also be USD. If the company currency for the bank account is different from the base currency of the payment, the system issues an error message and you cannot continue entering the payment.

When you enter a manual payment in a foreign currency, the system converts the selected vouchers to the domestic currency amount based on the exchange rate in the Currency Exchange Rates table (F0015) or, if applicable, a spot rate entered on the payment record.

To enter a manual payment in a foreign currency, you typically match the payment to an existing voucher or group of vouchers using the A/P Manual Payments program (P0413M). If no voucher exists, you use the A/P Standard Voucher Entry program (P0411). You can print a manual payment when you enter it in a foreign currency.