Posting receipts and payments to bank accounts in non base currencies

Posting payments in non base currencies

For example, you may make a payment for 1000USD to a supplier, but your bank account is in AED (or any other local currency). In this case you cannot issue a USD cheque and have to make a bank remittance. Hence you will instruct your bank to credit your bank account in the converted base currency you hold the bank account in. As we are talking of AED here, the bank will convert 1000USD into 3675AED (base) and credit your account. In this case you would be tempted in NEOSYS to credit the bank for 1000USD/3675base which is actually wrong:

The correct method would be to credit the bank account for 3675AED/3675base and debit the supplier for 1000USD/3675base. This is because if you enter a currency amount different from the base amount of the bank account than if you run a revaluation journal in future, NEOSYS will automatic adjust the base currency of the bank account to agree with the foreign currency amount if the exchange rate changes which you do not want happening at all. The correct payment entry will be:

You will at all times need to debit the supplier with 1000USD/3675base, otherwise you will not be able to allocate the payment to outstanding supplier invoices.