[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Cross currency invoices

OK, so I have only sterling bank accounts, but I have an invoice from a supplier in USD. I go to the bank and buy dollars using sterling and then wire the money to the beneficiary

....Now how to best enter this into the accounts system

I had previously been taking the rate that I got on my USD transaction and converting the invoice into stering at this rate, but it's awkward and error prone. I now want to use the accrual type system and an FX account.

So I enter in the invoices in USD. I then use the "payment" function to pay the invoice in USD, which I believe will leave me with a calculated GBP amount against my cash account. Now the remaining bit is how to post the balancing item into an FX reserve account so that the correct amount of GBP is shown...?

Can anyone talk me through the best way to do this last step please?


Ed W