Payment Scenario 3 - Foreign Payment (LCY to FCY)

You can use telebanking for trade with domestic and foreign customers and vendors. This topic describes a scenario where the trade is with foreign customers and vendors that use a different currency than your local currency.

1. Create Vendor/Customer.
2. Create Vendor/Customer Bank Account.
3. Create and Post Purchase Invoice for Vendor or Sales Invoice for Customer.
4. Create Proposal.
5. Create Payment History.
6. Export Payment History.
7. Import Bank Statement.

Create Vendor/Customer

Create vendor/customer and enter all necessary information. Special attention should be paid to the following fields:

• Currency Code: Set it to the foreign currency (FCY).
• Transaction Mode: Select an appropriate, default transaction mode - i.e. one that can deal with foreign currency payments for your local bank.
• Preferred Bank Account: Select an appropriate, default vendor/customer bank account having the same Currency Code as the vendor/customer itself.

Example

Hernandez Ortiz (code ORTIZ) is one of our Mexican vendors. Purchase invoices will be paid through our national bank account (code ABN) to his bank account (code HOBA). While our bank account ABN is denominated in local currency (LCY), Hernandez Ortiz's bank account HOBA is denominated in Mexican peso (MXN). Therefore, on Hernandez Ortiz's vendor card, we set the Currency Code field to MXN, fill the Transaction Mode field with ABN that is linked to our bank account, ABN, and set the Bank Account field to HOBA.

Create Vendor/Customer Bank Account

Create vendor/customer bank account and enter all necessary information. Special attention should be paid to the following fields:

• Preferred Bank Account: Enter a valid bank account number.
• Currency Code: Set it to the foreign currency (FCY).
• Owner Information: Be sure all owner information has been entered.

Example

Hernandez Ortiz's bank account (code HOBA) is denominated in MXN. Therefore, on Hernandez Ortiz's vendor bank account card, we enter a valid number in the Bank Account No. field, set the Currency Code field to MXN, and fill the fields on the Owner Information FastTab with appropriate values.

Create and Post Purchase Invoice for Vendor or Sales Invoice for Customer

Create a purchase/sales invoice and enter all necessary information. Special attention should be paid to the following fields:

• Currency Code: Set it to the foreign currency (FCY).
• Transaction Mode: Select an appropriate, default transaction mode - i.e. one that can deal with local currency payments for your local bank.
• Preferred Bank Account: Select an appropriate, default vendor/customer bank account having the same Currency Code is the vendor/customer itself.

By default these three fields will be populated with values taken from the vendor/customer card.

When the invoice is finished it can be posted.

Example

When creating a purchase invoice for Hernandez Ortiz we enter ORTIZ in the Buy-from Vendor No. field. By default, the Currency Code, Transaction Mode, and Bank Account fields will be populated with values taken from the Hernandez Ortiz's vendor card. Therefore, the Currency Code, Transaction Mode, and Bank Account fields will be MXN, ABN, and HOBA respectively. Nevertheless, these values can be changed.

Create Proposal

Open the Telebank - Bank Overview page and browse to the bank through which we want to perform our payment. Open the Proposal page and generate payment proposals using the Get Proposal Entries batch job.

Example

Through the Telebank - Bank Overview page, we open the Proposal page for our bank, ABN. Using the batch job, one proposal line will be created for the purchase invoice we just created and posted for the vendor ORTIZ. The amount of the payment will be in local currency (LCY).

Create Payment History

From the Proposal page, we process our proposal into a payment history. The proposal will disappear and can be found on the Payment History Overview page for the same bank.

Example

We process our proposal concerning the payment to the vendor ORTIZ and open the Payment History Overview page for our bank, ABN. The last payment history is the one we just created.

Export Payment History

Open the Payment History Overview page, browse to the relevant payment history and then choose the Export action. The export batch job will appear for the export protocol that is linked to this payment. For this export the system already has entered appropriate filters. Check, if wanted, any of the fields on the Options FastTab, and choose the OK button to export the payment. The system will generate a text file using a filename as defined in the Default File Names Field field of the export protocol, which now is ready to be sent to our bank.

Example

As the transaction mode associated with our payment is ABN, the BBV or PAYMUL batch job will appear.

Import Bank Statement

After receiving electronic bank statements from our bank we can import them by running the appropriate import protocol from the Import Protocol List page.

Example

The bank statement containing our payment to Hernandez Ortiz will be sent to us by our bank, ABN. Therefore, we should chose OFFICE NET EXTRA as the appropriate import protocol.

See Also

Create Proposals
Create and Export Payment History

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