bank-to-bank transfer posting doubts.

[former_member139256]

Hello. I have a doubt with the following scenario.

A transfer is made between bank accounts. One account is EUROs, the other is USD.

We transfer 50000 Euros from the EUROS account to the USD account.

The company currency is CHF. The transaction currency is EURO.

The accounting journal entries generated are as follows.

Local set of books

IFRS set of books

The 55.231,05 USD is the correct amount of USD.

What is driving me crazy doubts is why the transaction appears in EURO in the G/L account, when it is a USD account.

In the GL account of the USD Banck Account, the amount is shown in EUR, not in USD.

Any help is welcome,.. Thank you very much!!

Have a nice day.

[frank_jahnigen · Accepted solution]

Hello Victor,

The payment is initiated from a EUR Account in EUR. Hence the Transaction Currency is EUR for outgoing- as well as incoming transaction for both accounts.

The confirmation, however, can only be done via a bank statement in USD (bank account currency) on the USD-Account.

The Transaction Currency then will show as USD.

Hope this helps,

Frank