Receivables that are outstanding in foreign and local currencies should first be closed in the foreign one. This means that both the Prim. Curr. and Currency fields must be entered:

Example:

On April, 12th 2007 you issued an invoice to the Foreign Supplier in the amount of $20,000.00, which according to the exchange rate valid on that day, €1 = $ 1.25, equals €16,000.00.

The customer settles the invoice completely on May 4th, 2007 in the amount of $20,000.00. According to the exchange rate valid on that day (€1 = $1.26), it equals €15,873.02.

Close the receivable in the foreign currency in the Close outstanding items window:

The document was closed in the foreign currency but it is still open in the local one:

The document remains open in local currency for the amount of exchange differences. Later they are posted using the Automatic Posting of Exchange Differences:

After posting exchange differences, the document is closed in the local currency as well.

For examples of posting of exchange rate differences see Posting Exchange Differences.

Related topics:

• Close Manually in the Currency Used
• Credit Note Completely Set-off Using Invoice Issued
• Credit Note Partially Set-off Using Invoice Issued

For a general description of functions see:

• Close Manually