A common but underhandled scenario
A UAE agency paying a European hotel in EUR is an everyday transaction, but handling it correctly — recording the original currency, converting to AED at the right rate, and capturing any forex gain or loss — is exactly the kind of task that gets simplified (and made less accurate) under manual processes.
What happens step by step
In Muhasib, the supplier bill is recorded in its original currency first. At payment time, the system applies the applicable exchange rate, converts to AED, and posts any difference between the booked and paid rate as a forex gain or loss automatically — no manual journal entry required.
Why this level of detail matters
Without this, forex gain and loss either goes untracked entirely or gets lumped into a generic expense account — losing the visibility that would otherwise help an agency understand its actual currency exposure across different supplier relationships.
The outcome
Agencies get accurate multi-currency accounting without any manual forex calculation — a task that would otherwise require a bookkeeper's dedicated attention handled automatically as part of the normal payment flow.