I have euro invoices to enter onto sage accounts essentials. Should I change them to sterling to put them on? The thing is we have a euro account so they will be paid in euro so how would I then organize the payment? Pay in euro then change to sterling for the P&L?
Any help would be great, I'm loaded with the cold and cant get my head round it all!!
Hi ive not checked Parmi's link as just out and about.
But enter as normal but if your existing aupplier account is in sterling the open another account in euros and post to that new aupplier account. Don't forget to allocate the correct Vat code when you let them.
The when you pay them in euro, pay supplier as usual, choosing new supplier account and using the euro bank account.
HTH
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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
I do this for a client, we convert the invoice to GBP, but I have 2 bank accounts running, one GBP and one in Euros. So when paying the supplier pay it through the Euro bank account on Sage. Convert everything to GBP. We set our book rate for Euros every few months, that way it will make it easier to reconcile. Also set up a nominal code for Exchange Rate Variance. This could be in the 79XX codes or maybe elsewhere in the expense, could be in the 85XX section. Then any discrepancies due to exchange rate on the actual day can be posted to exchange rate variance code.
Like Joanne said what the VAT code on it if they are VAT reg.
HTH
-- Edited by Amanda on Wednesday 21st of September 2016 11:56:42 PM
Hi Amanda
I am confused if you have a bank account in euros and pay the invoice in euros why you would convert the invoice to sterling as you key it. Why not have the supplier account in the base currency, given the system will convert it to sterling use the currency rate you plug into the system for your balance sheet and P&l, but also allows you to do reports in the currency involved so eg you can match it to supplier accounts?
I use it the other way too and have mostly debtors in euros and other currencies, so by keeping the invoices in eg euros, means I can pull statements straight off the system,, plus do my EC sales list straight from sage. For the VAT return is all converted to sterling in the software.
I do a software revaluation once a month (monthly managements).
Or is it that your sage isn't multi currency?
Sorry, just spotted Carolines is sage essentials, can't recall if that has the ability or not. Is that the old sage instant?
__________________
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
Sorry Joanne, I should have said the Sage that I use is a few years old (its the clients), and it is not multi currency, so everything has to be converted to GBP for Sage.
Hi Amanda Ahhh, that makes sense. I only twigged that maybe it wasnt multi-currency by the time I got to the end of typing my note this morning. Thanks for clarifying.
Hopefully Caroline has sorted hers out with one of the answers between us!
__________________
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
