Setting Up AAIs for the Clearing Account for Alternate Currency Receipts

AAI item R7 defines the alternate currency clearing account used when you post alternate currency receipts. The alternate currency clearing account tracks the conversion from the receipt amount to the original invoice amount and provides an audit trail of the offset amounts for:

• The original foreign invoice and the domestic side of the foreign invoice

• The alternate currency receipt and the domestic side of the alternate currency receipt

The alternate currency clearing account balances on the domestic side but not on the foreign side. This is because the foreign side contains different currencies, which never balances.

These rules apply to AAI item R7:

• The clearing account must be in the same company as the bank account from which the receipt was applied.

• It must include a business unit.

• It cannot be a monetary (currency-specific) account.

The sequence in which the system searches for AAI item R7 is:

• The system uses R7 that is associated with the company entered on the receipt.

• The system uses R7 for company 00000.