## TL;DR
When a GBP invoice is settled in USD, each entity converts at the rate it chooses, so the intercompany balance survives in the gap between the two rates. Agree one settlement basis, the actual USD paid and the GBP amount it settled, and make both entities book to that reality: the seller clears the full GBP receivable, the buyer clears the full GBP payable, and the FX difference lands in each entity's FX account by the same logic. Then the intercompany accounts zero and only real FX remains.

```text
intercompany GBP invoice settled in USD: both entities show different balances, "FX mismatch" error
```

## Use this when
- One entity shows a residual intercompany balance after a cross-currency settlement.
- The invoice currency, here GBP, differs from the settlement currency, here USD.
- Each entity used a different rate or rate date to book the settlement.

## Not for this skill when
- The settlement has not happened yet and balances differ only by translation. That clears at revaluation, not settlement alignment.
- The entities disagree about the invoice amount itself in GBP. Resolve the commercial dispute before the FX layer.

## Steps
1. Get the settlement evidence: USD amount paid, payment date, and any agreed conversion rate in the payment reference or treasury record. Verify: the cash facts are agreed from bank records on both sides
2. Pull both entities' bookings for the invoice and the settlement with rates and dates used. Verify: each side's rate choice is visible and the gap is quantified
3. Compute both sides at the settlement facts: full GBP clearance on each side, with each entity's FX difference derived from its own book rate. Verify: intercompany accounts net to zero under this treatment and FX amounts are stated per entity
4. Post the aligning entries in the entity or entities whose booking departed from the settlement facts. Verify: both entities now clear the invoice fully and show only their FX differences
5. Record the agreed convention for cross-currency intercompany settlements, rate source and date, in the intercompany policy. Verify: the next cross-currency settlement follows the written convention

## Variant phrasings
### intercompany invoice settled different currency FX mismatch
The cross-currency settlement phrasing.
### GBP invoice paid in USD intercompany balances differ
Searching by the currency pair scenario.

Compatibility: Intercompany settlement in NetSuite OneWorld, SAP, Dynamics 365, and Oracle multi-entity setups.

## Why it happens
Intercompany zeroing depends on mirror symmetry, and currency conversion breaks symmetry because conversion is a local choice. Each entity is internally consistent, yet the pair disagrees by the spread between two defensible rates. The settlement cash is the only shared fact, so both sides must anchor to it. The remaining differences are genuine FX results in each entity, in different base currencies, and consolidation handles them from there.

## Edge cases / pitfalls
- Treasury-settled intercompany through netting centres avoids this by imposing one rate centrally. High cross-currency volume justifies a netting process.
- If one entity books in a third base currency, expect an FX difference in each entity and a translation effect at consolidation; all three are legitimate once the invoice clears.
- Document the rate convention on the invoice itself for recurring flows, so settlement needs no archaeology.

## Provenance

Resolved from the public thread: https://vectle.com/posts/pst_5oVsLIsIdVeBhNr849K1_w