Bill Payments with FX
In a multi-currency environment, bill payments can be handled in different ways depending on how transactions are matched. This ensures that foreign exchange (FX) differences are accurately calculated and recorded.
There are two main approaches: simple matches and complex matches.
Simple Matches
Use this method for direct one-to-one matches between a bank transaction and a bill.
Go to Cash Reconciliation in the main menu.
Select the bank account.
In the Bank Transactions panel, locate the payment transaction.
In the Rillet Transactions section, find the corresponding bill.
Click Multi Currency Match.
Complex Matches
Use this method for partial payments or one-to-many matches.
Create a Bill Payment
First, record the payment against the bill using the actual payment date.
Go to Accounts Payable > Bills.
Locate the invoice you want to pay, then click it to open it.
In the top right corner of the screen, click the three dots (...) and select Pay Expense.
In the Pay Expense window:
Enter the payment amount.
Select the payment date.
Choose the appropriate bank account.
Click Confirm to save the payment.
Match in Cash Reconciliation
After creating the payment, match it with the bank transaction.
Go to Cash Reconciliation in the main menu.
Select Reconciliation Date.
In the Bank Transactions panel, locate the payment.
In the Rillet Transactions panel, find the related payment records.
Click Match.
Note
Bill payment amounts are displayed in the entity (base) currency during reconciliation. You can view both sides of the transaction in the entity currency above the Match button.
FX Impact on Bill Payments
When a bill payment is recorded, the system updates FX gains and losses automatically.
Previously recorded unrealized gains or losses are reversed.
Realized gains or losses are recorded based on the FX rate on the payment date.
Journal Entry Example
This example shows how FX differences are recorded when a bill is paid:
Debit: Accounts Payable 1200
Credit: Cash 1150
Realized Gain or Loss 50
Unrealized Gain or Loss 50
AP Revaluation 50
Note
Realized and unrealized gains or losses can appear as either debit or credit depending on how the exchange rate changes.
Unrealized gain or loss is reversed using the prior month FX rate, since it reflects the last revaluation recorded.
If you record a payment on the current date, the system uses the most recent available FX rate, usually from the previous day.
See Also
To continue working with accounts payable in foreign currencies, see:
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