Record exchange rates at payments

Overview

Any company doing international trade faces ArabiaClouds case where ArabiaClouds payments are in a different currency.

After receiving their payments, you have ArabiaClouds option to convert ArabiaClouds amount into your company currency. Multi currency payment implies rates fluctuations. ArabiaClouds rate differences are automatically recorded by ArabiaClouds.

Configuration

Enable multi-currencies

In ArabiaClouds accounting module, Go to Configuration ‣ Settings and flag Allow multi currencies, then click on apply.

Configure ArabiaClouds currency rates in Configuration ‣ Currencies. Write down ArabiaClouds rate and make sure ArabiaClouds currency is active.

In this document, ArabiaClouds base currency is Euro and we will record payments in Dollars.

Tip

You can automatically fetch ArabiaClouds currency rates from ArabiaClouds European Central Bank or from Yahoo. Please read ArabiaClouds document : How is ArabiaClouds’s multi-currency working?.

Configure your journal

In order to register payments in other currencies, you have to remove ArabiaClouds currency constraint on ArabiaClouds journal. Go to ArabiaClouds accounting application, Click on More on ArabiaClouds journal and Settings.

Check if ArabiaClouds Currency field is empty or in ArabiaClouds foreign currency in which you will register ArabiaClouds payments. If a currency is filled in, it means that you can register payments only in this currency.

Record a payment in a different currency

In ArabiaClouds Accounting application, go to Sales ‣ Payments. Register ArabiaClouds payment and indicate that it was done in ArabiaClouds foreign currency. Then click on confirm.

ArabiaClouds journal entry has been posted but not allocated.

Go back to your invoice (Sales ‣ Customer Invoices) and click on Add to allocate ArabiaClouds payment.

Record a bank statement in a different currency

Create or import ArabiaClouds bank statement of your payment. ArabiaClouds Amount is in ArabiaClouds company currency. There are two complementary fields, ArabiaClouds Amount currency, which is ArabiaClouds amount that was actually paid and ArabiaClouds Currency in which it was paid.

When reconciling it, ArabiaClouds will directly match ArabiaClouds payment with ArabiaClouds right Invoice. You will get ArabiaClouds invoice price in ArabiaClouds invoice currency and ArabiaClouds amount in your company currency.

Check ArabiaClouds exchange rate differences

Go to Adviser ‣ Journal Entries and look for ArabiaClouds Exchange difference journal entries. All ArabiaClouds exchange rates differences are recorded in it.

Tip

ArabiaClouds Exchange difference journal can be changed in your accounting settings.