Paying a Bill using a Bank Account in a Different Currency

Normally, you would pay a bill using a bank account in the same currency but Versa supports paying a bill using a bank account that has a different currency. This feature needs to be activated by going to Setup menu, UI/Feature Settings, Payment Disbursements, and turn on Allow payment of bills in any currency.

There are 3 scenarios when you pay a bill in a different currency.

1 Use a foreign bank account to pay a bill in home currency

When you create this payment on the Make Payment page, you would be ask to enter an exchange rate multiplier that converts the foreign currency to the home currency.  Note the label in the Multiplier field to remind you how to enter the exchange rate. The payment amount you enter on the Make Payment page is always in the currency of the Bill. For example, your home currency is USD and you are using a EURO bank account to pay a bill that is 100USD. You would choose the EURO bank account and choose to List Bills in USD. Find the supplier and the bill you are paying. Enter an exchange rate multiplier of 1.1 (Euro to USD). Enter 100 (in USD) as the payment amount to the bill. When this payment is posted, you would be using 100USD / 1.1 = 90.90 Euro to pay for the bill. The bill will show a payment of 100 USD but you Euro bank account is credited with 90.90 Euro with a multiplier of 1.1.

There is no exchange gain/loss calculated since the bill is in home currency.

2 Use a home currency bank account to pay for a bill in foreign currency.

When you create this payment on the Make Payment page, you would be ask to enter an exchange rate multiplier that converts the home currency to the foreign currency. Note the label in the Multiplier field to remind you how to enter the exchange rate. The payment amount you enter on the Make Payment page is always in the currency of the Bill. For example, your home currency is USD and you are using a USD bank account to pay for a bill in EURO of 100 EURO. You would enter an exchange rate multiplier of 0.95 (0.95 USD equals one EURO). The payment amount is in EURO of 100. When the payment is posted, the bill is posted with a payment of 100 Euro and the USD bank account is credited with 100 Euro / 0.95 = 105.26 USD.

The system will calculate exchange gain/loss if the exchange rate multiplier of the bill in foreign currency is different from the exchange rate multiplier entered on the payment page (from home to foreign currency).

3 Use a foreign bank account to pay for a bill in a different foreign currency. Your home currency is USD and you want to pay a bill in Euro using a GBP bank account.

Versa does not currently support this type of payment.