We have invoiced a customer in Pounds, they have paid us into our Euro bank-account. To add to the confusion they have paid us too little (not just the currency difference but a lot more, but that is a separate issue (they are blaming the bank)).
How do I deal with this in Sage?
I need to record the money as incoming into our Bank Euro account and put the money as Payment on account on the customer's account? Journals? Inter?
Hi -
Just a few questions to help you get to the bottom of this perhaps:-
- did they sent pounds to the euro account, or euros to the euro account? Who gave them the euro account number? If you didnt then sounds like your Bank saw euros arrive and quite rightly put it to your euro account to avoid an exchange rate issue.
To find out this/check any potential difference they have paid you - worth ringing your Bank (or waiting for the usual incoming Bank advice) showing the amount that was transferred from abroad as the advice will show what was sent as well as what it was converted to, your Banks charges (if any) and the exchange rate.
This will enable you chasing the difference. (Im assuming there has been no foreign tax deducted).
In sage - can you just key the receipt of cash so far (based on the above advice's exchange rate) to the euro account from the Bank screen to your customer? ie Via the 'customer receipt' icon? (Do a backup first!)
Im pretty sure you cant journal to a customer account(and not sure what you mean by inter).
Let me know how you get on.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
They have seen the bank account number on a previous invoice.
They claim they have paid in line with the invoice, ie in Pounds, but to our Euro account, so the bank must have exchanged it.
I am waiting to receive a remittance advice (the customer is a big company ie, everything takes ages, and this has been logged as a case...).
I am not too worried about the difference in amount as I am sure I will be able to sort that out with the customer and/or the bank.
But what I don't understand is how I deal with it in Sage.
I can't input the receipt of cash as payment on the account from Bank as the Bank is a Euro account (currency Euros) and the Customer has two different accounts - one for Euros and one for Pounds - but this particular invoice was in Pounds ie on the Pounds account. If I go into the Bank account and try to log it as a Customer receipt it says I can't do it as the currencies don't match up. So this is where I am lost.
Do you, or anyone else, know how I deal with this?
Hi Carin
I've not used the currency accounts yet on Sage, so wasn't sure....got that delight to come soon though.
How about....set up an 'adjustments' bank account ( you can call it something else if you prefer), transfer from euro account to adjustments account, then clear part of invoice from adjustments bank?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
