Payment
From your list of Unpaid Invoices you decide to pay ACME and you make the payment using your internet banking facility. When you are ready you can mark the invoice as paid:
- Identify the invoice and choose [Pay] from the pick-list menu:
This will open the Payment pane:
- Date: date you will make the payment
- Reference: something to help with matching to the bank statement
- Exchange Rate: this will default to the prevailing exchange rate for the month and can be left as it is
- Payment Journal Type: ‘Payment to Suppliers GB’
- Bank Account: your Foreign Currency bank account
- Payment Type can be whatever you choose (but not a Cash type)
- Amount would normally be the full amount in dollars, but you can choose to part pay.
- Click [Pay] to create the Journal
If you refresh the List View you will see that the invoice has been fully paid. If it has not reduced the Outstanding amount, try again or navigate to ‘Purchases- SUPPLIER PAYMENTS’ and check the journal has been posted.
The Postings
If you inspect the posting generated for the Invoice you can see the necessary postings to Bank Account, Control Account and currency adjustments have been posted.
Reconciliation
In the next day or so the payment will appear in Bank Rec:
To Reconcile the bank transaction click on [Match]
- Select Journal type: ‘Supplier Payments GB’
- This will list all unreconciled Supplier Payments
Make sure the ‘Filter by Date’ goes far enough back to see the Supplier Payments. If you navigate to ‘Purchases – SUPPLIER PAYMENTS’ in another tab, you can filter the List View to find the journal number you need. You can then use ‘Filter by other words’ to find the right journal item to match.
- Identify the Journal Item you want to match and tick the checkbox.
- This is added to the list of ‘Selected Item to Match’ leaving a Remaining Balance of $9.67
Bank Charges
- To account for the $9.67 bank charges click on [New Journal] shown above
- This opens the New Journal pane:
- Journal Type: Bank Rec Money OUT
- Date: the date of the bank transaction
- Check the Bank Account( (this can default to the wrong bank)
- Add a suitable Reference
- Note the Currency is in USD
- Exchange Rate: this will default to the prevailing exchange rate for the month and can be left as it is
- Leave Name blank
A list of Payment Numbers is displayed, but just scroll down to the list of Journal Items and click on the icon to add a Journal Item line:
- Choose Bank Charges for the Ledger Account
- The Remaining Amount is now zero so you can [Save] to complete the reconciliation