Description:

We have observed that the new automated foreign currency posting feature during Ledger Settlement does not currently support scenarios where transactions are settled in different currencies.

Scenario:

For example, consider the following process:

• An invoice of 100 USD is paid via our payment run, also in USD.
• Our bank account is denominated in EUR. When transferring the payment to the vendor, the bank converts 100 USD to 90 EUR and provides a 90 EUR payment confirmation.

This results in the following entries on the clearing account:

• Payment: 100 USD (converted to 95 EUR in our system)
• Bank confirmation: 90 EUR

Current Issue:

Currently, these entries cannot be fully settled automatically in the ledger, as the system does not post the realized foreign exchange gain or loss. Manual postings are required to clear the differences arising from currency conversion.

Suggestion:

We propose an enhancement to enable automatic posting of realized FX gains or losses during ledger settlements where transaction and settlement currencies differ. This would streamline the process, reduce manual work, and ensure accurate financial reporting.