{"id":646,"date":"2019-02-21T12:23:46","date_gmt":"2019-02-21T12:23:46","guid":{"rendered":"http:\/\/sagefinancialsknowhow.com\/?p=646"},"modified":"2019-12-03T23:20:52","modified_gmt":"2019-12-03T23:20:52","slug":"foreign-currency-payments-gbp","status":"publish","type":"post","link":"https:\/\/sagefinancialsknowhow.com\/foreign-currency-payments-gbp\/","title":{"rendered":"Foreign currency Supplier Payments using a GBP bank account"},"content":{"rendered":"<h2>Reconcile Supplier Payments with no bank charges<\/h2>\n<p>The scenario is:<\/p>\n<ul>\n<li>You add a Purchase Invoice for $5,340.70 in Jan when the exchange rate is 1.20<\/li>\n<li>You pay the supplier in full,\u00a0\u00a34,104.00, in Feb and are quoted an exchange rate of 1.30134 by the bank.<\/li>\n<\/ul>\n<div class=\"bg-margin-for-link\"><input type='hidden' bg_collapse_expand='65f1c1a6497ab2047864134' value='65f1c1a6497ab2047864134'><input type='hidden' id='bg-show-more-text-65f1c1a6497ab2047864134' value='Show More'><input type='hidden' id='bg-show-less-text-65f1c1a6497ab2047864134' value='Show Less'><a id='bg-showmore-action-65f1c1a6497ab2047864134' class='bg-showmore-plg-link bg-arrow '  style=\" color:inherit;;\" href='#'>Show More<\/a><div id='bg-showmore-hidden-65f1c1a6497ab2047864134' ><\/p>\n<h3><strong>Payment<\/strong><\/h3>\n<p>From your list of Unpaid Invoices you decide to pay Dickenson plc and you make the payment using your internet banking facility. When you are ready you can mark the invoice as paid:<\/p>\n<ul>\n<li>Identify the invoice and choose [Pay] from the pick-list menu:<\/li>\n<\/ul>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-648\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP1.jpg\" alt=\"\" width=\"1307\" height=\"525\" \/><\/p>\n<p>This will open the Payment pane:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-697\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP3x.jpg\" alt=\"\" width=\"779\" height=\"577\" \/><\/p>\n<ul>\n<li>Date: date you will make the payment<\/li>\n<li>Reference: something to help with matching to the bank statement<\/li>\n<li>Exchange Rate: if you leave this blank it will pick up the exchange rate for the month, so if you have been quoted an exact exchange rate, enter that here<\/li>\n<li>Payment Journal Type: &#8216;Payment to Suppliers GB&#8217;<\/li>\n<li>Bank Account: <strong>VERY IMPORTANT<\/strong> set this to &#8216;Bank Clearing Account&#8217;<br \/>\nNB: This is not available until you choose a suitable <em>Payment Type<\/em><\/li>\n<li>Payment Type can be whatever you choose<\/li>\n<li>Amount would normally be the full amount in dollars, but you can choose to part pay.<\/li>\n<li>Click [Pay] to create the Journal<\/li>\n<\/ul>\n<p>If you refresh\u00a0\u00a0<img loading=\"lazy\" class=\"alignnone size-full wp-image-588\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/RefreshListView.jpg\" alt=\"\" width=\"31\" height=\"31\" \/>\u00a0 the List View you will see that the invoice has been fully paid. If it has not reduced the Outstanding amount, try refreshing again or navigate to &#8216;Purchases- SUPPLIER PAYMENTS&#8217; and check the journal has been posted.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-650\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP3.jpg\" alt=\"\" width=\"593\" height=\"113\" \/><\/p>\n<h3>The Postings<\/h3>\n<p>If you inspect the posting generated for the Invoice you can see the necessary currency adjustments have been posted with the payment posted to &#8216;Bank Clearing Account&#8217;.\u00a0You can also see the $5340.70 has been posted to the Clearing Account\u00a0as \u00a34104.00.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-699\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP4x.jpg\" alt=\"\" width=\"1885\" height=\"569\" \/><\/p>\n<h3>Reconciliation<\/h3>\n<p>In the next day or so the payment will appear in Bank Rec:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-651\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP6.jpg\" alt=\"\" width=\"1313\" height=\"427\" \/><\/p>\n<p>To Reconcile the bank transaction click on [New Journal]<\/p>\n<ul>\n<li>Select Journal type: &#8216;Bank Rec Money OUT&#8217;<\/li>\n<li>This will list all unreconciled &#8216;Payment Numbers&#8217;.<br \/>\nUnfortunately very little information is displayed about the the Journal you are trying to match to. If you navigate to &#8216;Purchases &#8211; SUPPLIER PAYMENTS&#8217; you can filter the List View and this shows the &#8216;Payment Number&#8217; you need to match to. You cannot filter on the Payment Number, but you can filter by Amount and use the browser search if you extend the number of listed records.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-656\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP7a.jpg\" alt=\"\" width=\"1577\" height=\"715\" \/><\/p>\n<ul>\n<li>Journal Type: Bank Rec Money OUT<\/li>\n<li>Date: the date of the bank transaction<\/li>\n<li>Check the Bank Account<\/li>\n<li>Note the Currency is in GBP so the Exchange Rate is not needed<\/li>\n<li>Leave Name blank<\/li>\n<\/ul>\n<p>Now identify the correct Payment Number and tick the check box:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-657\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP8.jpg\" alt=\"\" width=\"1517\" height=\"197\" \/><\/p>\n<p>This adds a Journal Item, but you need to fill in the Ledger Account to choose the Clearing Bank:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-658\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP9.jpg\" alt=\"\" width=\"1585\" height=\"721\" \/><\/p>\n<p>This &#8216;Remaining Amount&#8217; is zero so you can [Save] the Journal and the reconciliation is complete.<\/p>\n<h3>The Clearing Account<\/h3>\n<p>You can check the posting in the Clearing Account by navigating to &#8216;Ledger &#8211; LEDGER ACCOUNT STATEMENT&#8217; and you will see both a Credit and a Debit leaving a balance of zero.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-659\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP10.jpg\" alt=\"\" width=\"1503\" height=\"367\" \/><\/p>\n<p><\/div><\/div>\n<p>&nbsp;<\/p>\n<h2>Reconcile Supplier Payments WITH bank charges<\/h2>\n<p>The scenario is:<\/p>\n<ul>\n<li>You add a Purchase Invoice for $5,328.34 in Jan when the exchange rate is 1.20<\/li>\n<li>You pay the supplier in Feb when the exchange rate of 1.30 which equates to \u00a34,098.72 but the bank charges you \u00a35.28 transaction fees giving a total on the bank statement of \u00a34,104.00<\/li>\n<\/ul>\n<div class=\"bg-margin-for-link\"><input type='hidden' bg_collapse_expand='65f1c1a649e2b3050972698' value='65f1c1a649e2b3050972698'><input type='hidden' id='bg-show-more-text-65f1c1a649e2b3050972698' value='Show More'><input type='hidden' id='bg-show-less-text-65f1c1a649e2b3050972698' value='Show Less'><a id='bg-showmore-action-65f1c1a649e2b3050972698' class='bg-showmore-plg-link bg-arrow '  style=\" color:inherit;;\" href='#'>Show More<\/a><div id='bg-showmore-hidden-65f1c1a649e2b3050972698' ><\/p>\n<h3><strong>Payment<\/strong><\/h3>\n<p>From your list of Unpaid Invoices you decide to pay Amazon and you make the payment using your internet banking facility. When you are ready you can mark the invoice as paid:<\/p>\n<ul>\n<li>Identify the invoice and choose [Pay] from the pick-list menu:<\/li>\n<\/ul>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-662\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseFx1.jpg\" alt=\"\" width=\"1503\" height=\"581\" \/><\/p>\n<p>This will open the Payment pane:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-701\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP5x.jpg\" alt=\"\" width=\"777\" height=\"563\" \/><\/p>\n<ul>\n<li>Date: date you will make the payment<\/li>\n<li>Reference: something to help with matching to the bank statement<\/li>\n<li>Exchange Rate: this will default to the prevailing exchange rate for the month and can be left as it is<\/li>\n<li>Payment Journal Type: &#8216;Payment to Suppliers GB&#8217;<\/li>\n<li>Bank Account: <strong>VERY IMPORTANT<\/strong> set this to &#8216;Bank Clearing Account&#8217;<br \/>\nNB: This is not available until you choose a suitable <em>Payment Type<\/em><\/li>\n<li>Payment Type can be whatever you choose<\/li>\n<li>Amount would normally be the full amount in dollars, but you can choose to part pay.<\/li>\n<li>Click [Pay] to create the Journal<\/li>\n<\/ul>\n<p>If you refresh\u00a0\u00a0<img loading=\"lazy\" class=\"alignnone size-full wp-image-588\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/RefreshListView.jpg\" alt=\"\" width=\"31\" height=\"31\" \/>\u00a0 the List View you will see that the invoice has been fully paid. If it has not reduced the Outstanding amount, try to refresh again or navigate to &#8216;Purchases- SUPPLIER PAYMENTS&#8217; and check the journal has been posted.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-665\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseFx3.jpg\" alt=\"\" width=\"596\" height=\"101\" \/><\/p>\n<h3>The Postings<\/h3>\n<p>If you inspect the posting generated for the Invoice you can see the necessary currency adjustments have been posted with the payment posted to &#8216;Bank Clearing Account&#8217;.\u00a0You can also see the $5328.34 has been posted to the Clearing Account\u00a0as \u00a34098.72.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-702\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP5x-1.jpg\" alt=\"\" width=\"1891\" height=\"575\" \/><\/p>\n<h3>Reconciliation<\/h3>\n<p>In the next day or so the payment will appear in Bank Rec:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-651\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseGBP6.jpg\" alt=\"\" width=\"1313\" height=\"427\" \/><\/p>\n<p>To Reconcile the bank transaction click on [New Journal]<\/p>\n<ul>\n<li>Select Journal type: &#8216;Bank Rec Money OUT&#8217;<\/li>\n<li>This will list all unreconciled &#8216;Payment Numbers&#8217;.<br \/>\nUnfortunately very little information is displayed about the the Journal you are trying to match to. If you navigate to &#8216;Purchases &#8211; SUPPLIER PAYMENTS&#8217; you can filter the List View and this shows the &#8216;Payment Number&#8217; you need to match to. You cannot filter on the Payment Number, but you can filter by Amount and use the browser search if you extend the number of listed records.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-672\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseFx5.jpg\" alt=\"\" width=\"1495\" height=\"721\" \/><\/p>\n<ul>\n<li>Journal Type: Bank Rec Money OUT<\/li>\n<li>Date: the date of the bank transaction<\/li>\n<li>Check the Bank Account<\/li>\n<li>Note the Currency is in GBP so the Exchange Rate is no needed<\/li>\n<li>Leave Name blank<\/li>\n<\/ul>\n<p>Now identify the correct Payment Number and tick the check box:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-671\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseFx6.jpg\" alt=\"\" width=\"1423\" height=\"223\" \/><\/p>\n<p>This adds a Journal Item, but you need to fill in the Ledger Account, choosing the &#8216;Bank Clearing Account&#8217;. Note that the Remaining Amount shows \u00a35.28, being the Bank Charges<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-670\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseFx7.jpg\" alt=\"\" width=\"1493\" height=\"563\" \/><\/p>\n<p>To account for the Bank Charges click on the\u00a0<img loading=\"lazy\" class=\"alignnone size-full wp-image-492\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/01\/Plus.gif\" alt=\"\" width=\"31\" height=\"26\" \/>\u00a0icon to add another Journal Item line. This time choose &#8216;Bank Charges&#8217; as the Ledger Account<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-668\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseFx9.jpg\" alt=\"\" width=\"1463\" height=\"303\" \/><\/p>\n<p>This &#8216;Remaining Amount&#8217; is zero so you can [Save] the Journal and the reconciliation is complete.<\/p>\n<h3>The Clearing Account<\/h3>\n<p>You can check the posting in the Clearing Account by navigating to &#8216;Ledger &#8211; LEDGER ACCOUNT STATEMENT&#8217; and you will see both a Credit and a Debit leaving a balance of zero.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-667\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/02\/BankRecFxPurchaseFx10.jpg\" alt=\"\" width=\"1415\" height=\"361\" \/><\/p>\n<p><\/div><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reconcile Supplier Payments with no bank charges The scenario is: You add a Purchase Invoice for $5,340.70 in Jan when the exchange rate is 1.20 You pay the supplier in full,\u00a0\u00a34,104.00, in Feb and are quoted an exchange rate of 1.30134 by the bank. &nbsp; Reconcile Supplier Payments WITH bank charges The scenario is: You <a href=\"https:\/\/sagefinancialsknowhow.com\/foreign-currency-payments-gbp\/\" rel=\"nofollow\"><span class=\"sr-only\">Read more about Foreign currency Supplier Payments using a GBP bank account<\/span>[&hellip;]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"_links":{"self":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/posts\/646"}],"collection":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/comments?post=646"}],"version-history":[{"count":0,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/posts\/646\/revisions"}],"wp:attachment":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/media?parent=646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/categories?post=646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/tags?post=646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}