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Foreign Curr Documnet posting

Why document posting for Exports or Imports must happen in Foreign Currency Only

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 18, 2008 at 04:53 AM

    for imports/exports you would be transacting to another country which has its own currency that is different from your local currency. for payment, you will have to make it through foreign currency. for that purpose you will have to buy foreign currency and arrange for payment to the party. For dealing with foreign currency, you will have to transact through your local currency and you will have to incur additional incidental expenses also. In order to take care of all these systematically, you have to post the transactions in the foreign currency so that system would take care of the further process like exchange rate adjustment, gain, loss, etc. automatically.

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