Create a Bill Credit with FX
Creating bill credits in a multi-currency environment allows you to adjust previously recorded invoices while ensuring foreign exchange (FX) differences are handled correctly.
Follow these steps to create a bill credit from an existing bill:
Go to Accounts Payable > Bills.
Locate the invoice you want to adjust, then click it to open it.
In the top right corner of the screen, click the three dots (...) and select Bill Credit.
Enter the required details for the credit:
Vendor: Defaults to the original vendor.
Date: Select the credit date.
Account: Defaults to the original expense account.
Amount: Enter the credit amount.
Note The credit must be entered in the same currency as the original bill. The credit amount must be less than or equal to the remaining amount due on the bill.
Click Save to record the bill credit.
Once saved, the corresponding journal entries are automatically created in the organization currency.
FX Impact of a Bill Credit
When a bill credit is created, the system:
Reverses the original expense for the credited amount.
Reduces the accounts payable balance.
Reverses any unrealized gains or losses related to that portion of the bill.
Journal Entry Example
This example shows how the system records a bill credit:
Accounts Payable 1200
Expense 50
Unrealized Gain or Loss 50
AP Revaluation 50
Note
Unrealized gain or loss is reversed using the FX rate from the prior month, as it reflects the last revaluation recorded.
Unrealized gains or losses can appear as debit or credit depending on how the exchange rate has changed.
If you create a bill credit using the current date, the system uses the most recent available FX rate, typically from the previous day.
See Also
To continue working with accounts payable in foreign currencies, see:
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