There is discrepancy, while the Income(AED) and Expenses(USD) are in different currencies Profit Loss, is shown as per Income currency.
The Profit & Loss is always shown in your base currency.
Any sales or expenses in the foreign currency are translated into your base currency using the exchange rates you entered
What is your base currency?
What exchange rates have you entered?
Presumably, you have entered the sales and expenses using the correct currency designation on the sales invoices and purchase invoices?
Base Currency is AED. When we are creating payments we are entering the corresponding amount in base currency as per the transaction.
Are you using purchase invoices or are you just entering the payments without any invoice?
Show an edit screen of the transaction
We are using purchase invoices and then creating payments.
Payment Voucher example PV-21-010
The expenses in the P & L are from the purchase invoice.
Have you created an Exchange Rate for AED / USD for whatever date of the invoice is?
It looks like you have not entered any exchange rate so Manager has defaulted to 1 AED = 1 USD
The exhange rates are in Settings / Exchange Rate
The values on your payment transactions are not used to calculate the exchange rate
Thanks, got it. I was under the impression the Exchange rate is automatically calculated based on this.
That would be better if it is automatically taken as per transaction entry.
The equivalent foreign currency amount available on some transactions only tells the program to consider payment in one currency as full satisfaction of the obligation in another. That way, a purchase order can be shown as being paid in full despite later exchange rate fluctuations. Changes in exchange rates result in automatic adjustments in the Foreign exchange gains/losses account rather than in Accounts payable.