Payments in foreign currency

hi
when payments made for foreign currency transactions, what postings are made to balnce sheet adjustment account for foreign vendor? how is this account adjusted after payment is made so that true reflection of vendors can be reported.
tx

Hi,
When the revaluation program is run (normally during month end), the foreign currency transactions will get revaluated and the loss/gain gets posted to the B/S adjustment account.
If the program, in the above step, was run with the "Reverse posting" indicator marked, the documents created in the above step would be reversed automatically on the 1st day of the next month. Thus the adjustment account gets set off.
If the "Reverse posting" indicator was NOT set, then during the invoice payment, the adjustment entry (from the first step) gets reversed. In the payment document you can find an additional entry that sets off the B/S adjustment account.
Hope this helps.
Regards,
Mike

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