What happens if I apply a credit card refund to a receipt in a different currency?

If you apply a credit card refund to a receipt that's not in the ledger currency, then you must account for the exchange gain or loss between the time of the original transaction and the time of the refund.

When you enter a foreign currency credit card refund, Receivables creates a negative miscellaneous receipt in the foreign currency using the same rate as the original receipt. During reconciliation, when you know the conversion rate that the bank used at the time of the refund, you can adjust the conversion rate on the negative miscellaneous receipt to reflect the information on the bank statement.

Receivables automatically creates the necessary journal entries to account for the exchange gain or loss. You can view the exchange gain or loss accounting entries on the original credit card payment.