Posting Documents in Foreign Currency (Accounts Receivable)
When you post a customer document (invoice) in foreign currency, the system stores the amount in both local and foreign currency for each line item.
To specify the foreign currency for your document, enter the appropriate currency key in the Currency field in the document header. The system then transfers the exchange rate valid on the posting date from the system settings. If you enter a date in the Translation date field, the system transfers the exchange rate valid on this date.
The valid exchange rate is the one entered on the posting date or on the translation date, or the rate entered at an earlier time. For example, if you post a document on August 25, but the last exchange rate in the system setting is from August 22, the system uses the exchange rate from the entry on August 22.
There are several ways to enter an exchange rate:
You can enter documents in any foreign currency for which a currency key is defined in the system. If you manage a G/L account, for example a bank account, in a foreign currency, you can only post documents to this G/L account in the account currency, that is, the foreign currency.
For more information about clearing open items in foreign currency, see FI Accounts Receivable and Accounts Payable.