Example 1: G/L Postings that Occur from an Invoice Posted in a Foreign Currency 

Below you will find the G/L postings that result after posting an invoice.

Europe

Below you will find the G/L postings that result after posting an invoice. In this example, let’s assume that an invoice is posted for 1500 GBP. The exchange rate GBP:DEM is 1:3.

North America

Below you will find the G/L postings that result after posting an invoice. In this example, let’s assume that an invoice is posted for 1000 CAD. The exchange rate CAD:USD is 1:0,7.

 

Because the document is posted in a foreign currency, the balances for the document are stored in both the local and foreign currencies.

Europe Example - Posting invoice with foreign currency

In British Pound

North America Example - Posting invoice with foreign currency - for revaluation Method I:

In Canadian Dollars

North America Example - Posting invoice with foreign currency - for revaluation Method II:

In Canadian Dollars

Credit 1098 Leeds Manufactoring (Vendor) 1500

Credit 4910 D&P Forbes (Vendor) 1000

Credit 4940 R&P Bros. (Vendor) 1000

Debit 415000 External Procurement Costs 1500

Debit 415000 External Procurement Costs 1000

Debit 415000 External Procurement Costs 1000

In DEM

In US Dollars

In US Dollars

Credit 1098 Leeds Manufactoring (Vendor -)4500

Credit 4910 D&P Forbes (Vendor) 700

Credit 4940 R&P Bros.(Vendor) 700

Debit 415000 External Procurement Costs 4500

Debit 415000 External Procurement Costs 700

Debit 415000 External Procurement Costs 700