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Pay CAD invoice in EUR in company with GBP accounting currency

  • 27 July 2022
  • 6 replies
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A
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Hi Community

 

We require the ability to pay CAD Supplier Invoices out of our EUR bank account.

Our site has GBP setup as the Accounting Currency.

When we Create a Payment Order and attempt to change the currency to CAD the below error message is generated and we cannot update the currency in the payment order first pop up box.

Currently we can pay CAD Supplier invoices out of our GBP bank account but can’t seem to do this out of EUR bank account.

 

 

Is this an IFS restriction by way of core processing - meaning that it isn’t possible for us to do what we require? 

 

I have read another post in the community that deals with a similar situation but that scenario was related to Cash Transfers from one account to another utilizing Mixed Payments.

 

Can someone confirm if what we are attempting to do is doable or not?

 

Any information would be much appreciated!

 

Thanks

 

A

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Best answer by Adam.Bereda 9 August 2022, 11:48

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M
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Hi @AlanS , 

You seem to be getting this error message as you are attempting to change the currency defined for the BNPEUR cash account. As the currency for the specific cash account is already defined in the cash account, for foreign currency payments, a cash account with the invoice currency needs to be used. 

Further, you can change currency in transaction only if cash account is in accounting currency.

If you require to make a payment for CAD invoices via EUR cash account, you can use the mixed payment window.

 

Thanks and best regards,

Meshani.

A
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Hi Meshani

 

Thank you for your response to my post, it’s much appreciated.

Would you be able to provide an example of the Mixed Payment entries to pay a CAD100 Supplier Invoice out of a bank account that is not in the Accounting Currency (in this case the BNPEUR Cash Account?

I will attempt the same transaction in one of our non-production databases to see if I am making the correct entries.

 

Thanks

 

A

 

A
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Hi, Alan, 

In mixed payment, you can connect invoice in any currency to mixed payment transaction. 
If you are paying CAD invoice (transfer CAD to your supplier) out of EUR BANK account, effectively bank is selling you CAD for your EUR. 

In mixed payment then you are registering EUR supplier payment transaction indicating supplier and EUR equivalent of CAD transferred as paid amount. Then in matching window you can match your CAD invoice with this line, playing with amount in payment currency and in invoice currency to balance the matching (and allowing system to calculate currency differences in GBP...)

I am using old IFS version, 7.5, so my screenshots could be misleading, but the logic is same.

Regards, Adam
A
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Hi Adam

 

Thanks so much for following up on this discussion.

In my initial comments I mentioned that I had seen a post regarding a similar situation related to Cash Transfers and that post was of course your post on the discussion - so thank you for that.

Would you be able to include the screenshots that you mentioned in your comments of 072822 as they don’t appear to be attached.

I’ve a fairly clear picture of what entries I have to make but having your screenshots would certainly confirm my thoughts.

Thanks again.

A

 

A
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Hi,
Screenshot from version 8. I was thinking about transaction like that

In matching section, you need to modify amount in payment currency, to specify EUR equivalent of CAD amount transferred (i.e. payment amount in invoice currency) and balance the matching  

A
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Hi Adam

Thanks so much for posting your screenshots by way of an example - much appreciated!

The Mixed Payment that I put together is similar to what you have shown and from my point of view it looks to have created the transactions that are required i.e. . Paying CAD invoice in EUR in company with GBP accounting currency

I’ll send my documentation to our Finance team for their review of the transactions and will let you know of their response when I hear back from them

Thanks

A

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