Freeze the document rate
At issue, retain the original currency, document date and AED conversion. A VAT tax invoice in foreign currency must show VAT in AED and the exchange rate used. Do not replace this rate when money arrives later.
Settle at the payment-date rate
When the bank receives or pays the amount, record the actual AED value or applicable settlement rate. Match the payment to the invoice and post the difference separately as an FX gain or loss. Partial payments should be matched in parts.
Keep three values visible
A useful audit view shows the foreign-currency amount, AED equivalent at invoice date and AED settlement amount. Malyon retains both rates, matches the bank line and closes only the receivable or payable amount actually settled.
See the process in Malyon
The demo is read-only: you can open every relevant section without changing data.
- Open the demo workspace
- Choose the section mentioned in this guide
- Open documents, checks and reports to see the complete flow
Frequently asked questions
Which rate is used for VAT?
Use an exchange rate approved by the UAE Central Bank under the applicable FTA rules and preserve the rate used on the invoice.
Does an FX difference change invoice VAT later?
A later settlement difference is accounted for separately; do not silently rewrite the issued invoice rate.