Payment instruction in currency other than Bank Account currency

[Former Member]

Dear All,

Please help me in following case:

Facts: The baank account is the USD account. Payment instruction is to go in EUR. Bank will convert the EUR in USD and debit my account in USD. The bank account will get a credit in my books in EUR (if at all I maintain GL currency being USD, the transaction will be recorded at the exchange rate which is used for accounting, whereas the bank will convert EUR to USD at the byuing rate of EUR).

Question: How system, while automatic BRS, knock off these entries?

Thanks in advance.

Amish Shah.

[Former Member]

There is no reply to this question. However, we found a solution where we shall account for paymnet entry in currency (ie EUR) in which we need to make the payment & generate the payment instruction in that currency (EUR) only. Bank will debit our account with USD and while BRS, the EUR entry will get knocked off with USD entry and will account for the exchange gain/ loss.