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Payments in another currency

A payment against a USD invoice is in USD, at the rate the bank gave. The difference from the invoice's rate is an exchange gain or loss.

An invoice in US dollars is booked in rupees at its own rate. When the money arrives, the bank changes it at that day’s rate, which is rarely the same. JAI CRM records both and books the difference.

Recording it

  1. Open the invoice or bill and choose Record a payment, or use Payments received or Payments made.
  2. The payment is in the document’s currency. On the payments screen, choose the currency when the customer or vendor has documents in more than one.
  3. Enter the amount in that currency, and in INR for 1 USD the rate your bank actually gave. It starts at the rate last used.
  4. Save. The rupee amount it came to is shown under the rate.

What the books show

  • The bank account receives or pays the rupee amount, and its balance and statement show that.
  • The invoice or bill is cleared at the rate it was booked at, so the customer or supplier owes nothing in rupees either.
  • The difference goes to Exchange gain or loss. Received at a better rate than booked, it is a gain; at a worse one, a loss.

A payment is in one currency. Documents in dollars and documents in rupees are paid with separate payments.

Next in accounting & finance Change several expenses, bills or payments at once → Pay a bill and deduct TDS →

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