Dear folks,

 

An error message is being encountered when saving a mixed payment to process a 'Cash transfer' from one Currency account to another Currency account  e.g. EUR to USD account.  The accounting currency is GBP.

It will allow to transfer of EUR to GBP account or USD to GBP Account but not EUR to USD.

 

 

Could you please advice on this?

 

Best Regards,

Thakshila

Hi Thakshila,

GBP is your company's accounting currency and I believe the general tab of the mix payment  too consists of GBP currency. In that case, the system is being activated via LOV to choose the preferred currency. As you have mentioned, you can choose GBP  or EUR or whatever your preferred currency along with the respective counter cash account. This functionality is working fine in IFS. However. you can change the cash account with a different currency(EUR)  in the mix payment general tab and enter the payment. However, there is no LOV activated for choosing a different currency such as USD in your example. Moreover, you can not select a USD counter cash account too. Instead, it is required to choose an EUR counter cash account. This is the standard functionality of mix payment cash transfer or cash box cash transfer. Hope this will help you to resolve the issue.  

Just explanation. 
Normally, on your bank account in domestic currency, you can execute operations in any currency - your bank will buy or sell you relevant currency and book domestic equivalent. But if you have a foreign currency bank account, you are expected to perform operations in currency of this account only. That’s why currency conversion on cash transfer between two foreign currency accounts (with currency rate triangulation) is not supported. 

You can still perform it in an old-fashioned way, using two mixed payments (on issuing and receiving cash account), each with single transaction (direct cash payment) using bank transit GL account, and each transaction registered in currency of relevant account - you should ensure manually that transit account is closed, i.e. accounting currency equivalent of both transactions is matching.

@Adam Bereda, Thanks for your valuable explanation. Still, I have a few clarifications on that.  

1. What did you mean by bank transit GL account and how can we set up it?
2. How can we manually close the transit account? 

Hi, 
Bank transit account is usually connected to PP77 posting control. You can use same account in Direct Cash transfer - it is not a ledger account. 

After transfer, balance in accounting currency on this account should remain unchanged (debit impact equal to credit one) - that’s what I called “closed”.

@Adam Bereda Thanks a lot .