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I'm not sure if I'm missing something obvious, we purchase stock where the prices are fixed in USD, and sell in GBP. We've installed all featured modules in V7, we have not installed the Anglo-Saxon module.

The following have been configured:

  1. Settings/Configuration/Accounting - Multi currency checked. Gain and Loss Exchange Rate Accounts have both been set to 770000 Exchange gains/lossess (expense)
  2. Journals: USD Stock Journal and USD Purchase Journal have been defined with default settings and currency set to USD
  3. Price Type: USD Cost Price has been defined
  4. Supplier: Set-up with Account Receivable = 110000 Debtors Control Account / Account Payable = 210000 Creditors Control Account
  5. Product Category defined: Income = 400000 Sales Category 1 / Expense = 100100 Stock (current asset) / Stock input account = 100100 Stock / Stock Output account = 500000 Cost of Sales 1 / Stock Journal = USD Stock Journal
  6. Product: defined as stockable, procurement = made to order, assigned to product category, assigned to supplier
  7. Pricelists: Generated a USD purchase price list, based on the USD Cost Price type

When raising a purchase order with a supplier I complete the following process:

  1. Request Quote: enter supplier, set the pricelist to the USD purchase price list, add the product to the PO. E.g. value set to $15
  2. Confirm Order, Receive goods
  3. Receive Invoice: I set the Journal to Purchase Journal (USD), Account = Creditors Control Account, Currency is USD. I have also tested setting the Journal to the default Purchase Journal in GBP and got the same result.

At this point, the balance sheet correctly shows the debt calculated in GBP based on the universal exchange rate in the system. E.g. £9.50

Paying the invoice: I set the payment method to Bank (GBP), and enter a paid amount corresponding to what we might pay, E.g. £10.

At this point, the system credits the bank with £10 and debits the Creditors Control Account with £9.50 and £0.50.

What we would have expected to see is the Creditors Control Account to be credited with £9.50 and £0.5 to be put into the Foreign Exchange Gain/Loss Account.

Has anyone come across this or know how to resolve please? Any input will be greatly appreciated.

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