When the customer’s Place Orders in the Customer Currency Indicator is checked, sales orders will be denominated in the customer Currency. The sales order is stamped with rate of exchange from the Exchange Rate Schedule that is current for the order date.
Sales Order Invoicing
When a sales order denominated in foreign currency is invoiced, postings to revenue and AR are calculated at the rate of exchange from the Exchange Rate Schedule that is current for the invoice date. The invoice is stamped with that rate, which becomes the historical document rate for the invoice.
AR documents denominated in foreign currency that are entered in the Receivable Session and Receivable Transaction functions
When an AR document (Invoice, Debit Memo, or Credit Memo) is entered from the AR side in the Receivable Session or Receivable Transaction functions, postings to revenue and AR are calculated at the rate of exchange from the Exchange Rate Schedule Object that is current for the document’s transaction date. The document is stamped with that rate, which becomes the historical document rate.
Cash Receipts
When a deposit is entered, whether as a single payment or multiple payments, the rate of exchange from the Exchange Rate Schedule Object that is current for the deposit date is captured. It is used
To value the debit to cash for the deposit.
To value any debits to the discounts allowed account.
As the document currency for any credit-balance Unapplied Cash items created for the deposit.
Debits to AR resulting from cash application are valued at the paid item’s historical document rate.
If the debits exceed the credits, the difference is taken as a gain on foreign exchange.
If the credits exceed the debits, the difference is taken as a loss on foreign exchange.
Write-ups and write-offs taken at cash receipt are valued at the historical document rate.
Credit Memo and Unapplied Cash item application
When credit-balance items (Credit Memos and Unapplied Cash items) are applied to debit-balance items (Invoices and Debit Memos)
The debit to AR that removes the credit-balance item is valued at the credit-balance item’s historical document rate.
The credit to AR that removes the debit-balance item is valued at the debit-balance item’s historical document rate.
If the debit exceeds the credit, the difference is taken as a gain on foreign exchange.
If the credit exceeds the debit, the difference is taken as a loss on foreign exchange.
