What is the best way to refund vendor prepayment? Base currency is AUD, transaction currency is USD and bank account currency is AUD. There is forex difference. So we received a lower AUD amount than the original payment which we consider as realized forex loss. Since we can only close a prepayment via a bill, then I'm planning to: 1. Create a dummy vendor bill with the same exachange rate as the original prepayment. Debit is realized forex loss? 2. Apply it to the prepayment to close it out. 3. That creates a prepayment application transaction. 4. Create a Journal Entry to debit the AUD bank account and credit it to realized forex loss?