Foreign currency accounts and accounts to which you can post foreign currency and local currency amounts are ALWAYS closed by selecting the In Currency and not In Primary Currency option!!! See also Chart of Accounts.

Usually, the exchange rate differences get posted to closed items of foreign currency lines. However, if a part of foreign currency amount is still unpaid, post rounding differences and cash discounts before automatic posting of exchange rate differences.

Example:

We issue an invoice to Alpha Trade in the amount of 60 GBP, which was partially paid off in amount of 55 GBP. Therefore you have the following posts:

Select a foreign currency account, type in the In Currency field and the maximum amount (in a foreign currency!) in the window for closing rounding differences. Then enable posting of rounding differences. Click Close to locate all outstanding foreign currency items matching the criteria:

Mark the appropriate lines and launch Post. A journal entry is created. Click OK to display it.

Doing so you close a foreign currency line (see closing outstanding items in foreign currency).

To close the local currency line you have to automatically post exchange differences.

Related topics:

• Close Rounding Differences
• Close Cash Discount
• Partial Payment to Cash Discount Due Date
• Rounding Differences and Cash Discounts by Departments and Cost Centers

For a general description of functions see:

• Rounding Differences and Cash Discounts