Multi-currency payment entry (internal) & exchange gain/loss

I just wanted to confirm my understanding in multi-currency Journal Entry is correct

the transfer

is an internal bank transfer between 2 subaccounts in our bank.

  • sender: USD savings account (my ERPNext default currency)
  • recipient HKD savings account

the actual transfer

is represented by the 2 fields Received amount (HDK) & **Paid amount (USD). Thes numbers is something I see from the internet baking (the HKD 1000.- is what I want to pay, and USD 127.66 is what our bank deducts for this from the USD savings account. So this results into an exchange rate of 0.127656782 (which is defined by my bank)

this is what actually happens and the numbers which are shown in the accounting of the accounts in ERPNext

Received Amount (USD)

is another field on the PE Entry Form and it’s amount is different from the “Paid amount (USD)” and is populated by ERPNext. I assume that this is generated from the autofetched internal exchange rate by itself. Also this value can not be edited by the user.

Can anyone confirm that my understanding as per below assumptions …

  1. that this difference in the USD values (Paid amount / Received Amount) is what I will record in the “Exchange Gain/Loss” account
  2. this “Exchange Gain/Loss” is an expense account

… is accurate?

Hello dear friends

Did you find answer to your questions?
Im facing the same doubts