Foreign Exchange rate confusion

Why does the foreign exchange loss show? And what loss is it?
The entire transaction happened in one day.

You need to post a screen shot of the transaction entry screen.

You have posted the View screen. You must post the Edit screen on which you entered data.

Oh sorry.

First, you have not shown the entire Edit screen. Show the Tracking Code field and anything further to the right, especially an optional base currency entry field.

Second, are the Payer, Payee, Customer, and Invoice # fields really blank, or did you obscure them? To diagnose an expense claim problem, we need to know who the Payer is.

Third, we need to know details of the payer. If the Payer is an employee, we need to see the input screen for that employee to know what currency you have set up for them.

Fourth, do you have exchange rates defined under Settings? If so, we need to see the list and screen shots of any rates for INR.

Usually there is an optional base currency field, this time it didn’t show… there is nothing to the right of the tracking field.

I obscured the payer and payee… the customer is the payee… and the invoice field is blank.

The Payer is an “Expense Claim Payer” not an employee.

Initially there was no exchange rate defined under settings, but even after I defined a rate its still the same:
this is the rate:

Well, now that you have defined a different exchange rate, I suspect your forex gain/loss is also different. These small amounts originate when the conversion rate is not exact and amounts must be shown to the smallest fraction of the currency. For example, 5,323 INR at 15.8423 converts to only 335.99919204 SAR (and that is not exact). You have not shown the actual invoice involved, but there may be rounding differences with it, too, since one rupee’s value is small. You could actually have many calculations involved, and rounding differences will accumulate. Normally, some will be positive, some negative, so the forex gain/loss account does not grow too much over time. The only way to avoid these is to either work in a single currency or be lucky with exchange rates that happen to be exact.

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thank you that makes sense.