When we post payments, we usually have payments for customers and from vendors. In the same time, we should have bank account posting as balance accounts. Bank account is not necessary, but it is the best practice.
When we post payments from bank statement, we will get the same G/L entries, regardless we have payment in local currency or in some other. These are entries as following:
If we use non-local currency in payment process, after running Adjust Exchange Rate batch job, we will get the following G/L entries:
In previous example, you could see result if used currency exchange rate was increased. But, if exchange rate was decreased, the posting results in G/L entries would be as following:
All previous results were unrealized exchange rates gains or losses, but when we apply these payments, we will get realized exchange rates as on following table:
All postings, based on difference currency code, use posting groups and accounts as on following flow chart: