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Former Member
Jan 09, 2012 at 06:52 AM

Forex Gain/Loss not posted when adding Outgoing Payment Drafts

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Hi Experts,

I have encountered an irregularity when trying to add an outgoing payment draft. The transaction goes like this:

I have added an AP Invoice on 01/02/2012 with a Forex rate of PHP 44 (BP Currency is USD). Payment will be in local currency of PHP. Outgoing payment was added as draft on 01/04/2012. However, upon adding the draft that was made, a system message appears.. "PHP -264.00 of the amount to be paid is not matched to existing transactions. Do you want to post this amount as a Payment on Account?"

How come that this amount will be posted as a payment on account? It should be posted as Realized or Unrealized Foreign Exchange Gain or Loss. I have tried adding directly the outgoing payment and there seems to be no problem in the entry that was made. Meaning the Realized Forex Gain/Loss was used in the journal entry. Does adding the document as draft have an effect on this?

Thanks,

Michelle Pereyras