Applying Payments to Invoices Billed in Foreign Currencies: MS Dynamics GP

Recently we have received a lot of questions about multi-currency transactions in MS Dynamics GP. Specifically, some of these topics are related to applying payments in functional currency to the sales invoice that was billed in the foreign currency to the customer. This blog will explain a step by step process of entering invoices in the foreign currency, and then, applying a payment to such invoice in the company’s functional currency.

First, we enter an invoice in the foreign currency. Open ‘Sales Transaction Entry’ window and begin entering an invoice as usual. In the ‘Currency ID’ field select desired currency for the invoice. After the invoice has been entered, go to ‘Sales Batches’ and post the invoice to the sales and general ledger modules.

When the payment has been received from the customer it can be recorded in ‘Cash Receipts Entry’ window using functional currency in ‘Currency ID’ field. Once all the appropriate fields are filled out, normally we would click the ‘Apply’ button to apply this payment to the invoice. However, the payment in the functional currency does not see the invoice entered in the foreign currency. In order to resolve this issue, we go ahead and post the payment without applying it to the invoice.

Now that we posted a customer payment, we can open ‘apply sales documents’ window and apply the payment to the invoice in the foreign currency. Select a ‘Customer ID’ and the payment number in the ‘Document No.’ field, and the invoice entered in the foreign currency will now be visible in the ‘Apply to Document’ screen. Select the invoice by putting a check mark in the ‘Apply To’ box and click the ‘OK’ button.

Overall, we use to work around processes to apply a payment in functional currency to the invoice billed in foreign currency. By posting the payment without applying it to the invoice, going to the ‘Apply Sales Documents’ window, and finally applying the payment after it has been posted to sales and General Ledger modules, this will overcome many issues that you may have encountered. If you would like more on this topic, contact KTL Solutions at 866-960-0001 to get in touch with your personal consultant.

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