{"id":887,"date":"2019-10-24T14:45:07","date_gmt":"2019-10-24T13:45:07","guid":{"rendered":"http:\/\/sagefinancialsknowhow.com\/?p=887"},"modified":"2019-10-24T14:46:32","modified_gmt":"2019-10-24T13:46:32","slug":"foreign-currency-supplier-payments-using-a-gbp-bank-accountm2","status":"publish","type":"post","link":"https:\/\/sagefinancialsknowhow.com\/foreign-currency-supplier-payments-using-a-gbp-bank-accountm2\/","title":{"rendered":"Foreign currency Supplier Payments using a GBP bank account (new method)"},"content":{"rendered":"<h2>Reconcile Foreign currency Supplier Payments using a GBP bank account<\/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\u00a34,108.23, in Feb and are quoted an exchange rate of 1.3000 by the bank.<\/li>\n<li>There are additional \u00a35 fx charges applied<\/li>\n<\/ul>\n<div class=\"bg-margin-for-link\"><input type='hidden' bg_collapse_expand='660c60e06557f1048146945' value='660c60e06557f1048146945'><input type='hidden' id='bg-show-more-text-660c60e06557f1048146945' value='Show More'><input type='hidden' id='bg-show-less-text-660c60e06557f1048146945' value='Show Less'><a id='bg-showmore-action-660c60e06557f1048146945' class='bg-showmore-plg-link bg-arrow '  style=\" color:inherit;;\" href='#'>Show More<\/a><div id='bg-showmore-hidden-660c60e06557f1048146945' ><\/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 wp-image-890\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/10\/PayFXInv2.jpg\" alt=\"\" width=\"657\" height=\"482\" \/><\/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>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 Purchase Invoice 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 &#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 the bank as \u00a34108.23.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-891\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/10\/PayFXInvPostings2.jpg\" alt=\"\" width=\"1879\" height=\"655\" \/><\/p>\n<p>&nbsp;<\/p>\n<h3>Reconciliation<\/h3>\n<p>In the next day or so the payment will appear in Bank Rec, the amount is \u00a34113.23 which includes a \u00a35 fee:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-893\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/10\/PayFXInvBankRec.jpg\" alt=\"\" width=\"1879\" height=\"371\" \/><\/p>\n<p>To Reconcile the bank transaction click on [Match]<\/p>\n<ul>\n<li>Select Journal type: &#8216;Payment to Suppliers&#8217;<\/li>\n<li>This will list all unreconciled &#8216;Payment to Suppliers&#8217; Journal Items.<br \/>\nUnfortunately the &#8216;Filter by other words&#8217; does not work, but you can filter by date. You can also use &#8216;Filter y Amount&#8217; but you will want to use the &#8216;Custom amount Range&#8217; option as this amount does not match the payment exactly.<\/li>\n<li>When you have identified the\u00a0&#8216;Payment to Suppliers&#8217; Journal Item select it by ticking the check box which will add it to the &#8216;Selected Items to Match&#8217; list:<\/li>\n<\/ul>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-895\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/10\/PayFXInvBankRecMatch.jpg\" alt=\"\" width=\"1737\" height=\"833\" \/><\/p>\n<p>The amount in USD and GBP is displayed, along with the &#8216;Remaining Balance&#8217; of \u00a35 which is the Fx Fee.<\/p>\n<p>To reconcile the Fx Fee, click [New Journal] using a &#8216;Bank Rec Money OUT&#8217; Journal Type (or similar). Ignore the Payment Number list and click on the \u00a0<img loading=\"lazy\" class=\"alignnone size-full wp-image-897\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/10\/PlusIcon.jpg\" alt=\"\" width=\"18\" height=\"16\" \/>\u00a0icon to add the amount manually:<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-896\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/10\/PayFXInvBankRecMatchFee.jpg\" alt=\"\" width=\"1723\" height=\"975\" \/><\/p>\n<ul>\n<li>Gross is the fee<\/li>\n<li>Reference: something helpful<\/li>\n<li>Ledger Account: your Bank Charges account<\/li>\n<li>Payment Number: leave blank<\/li>\n<\/ul>\n<p><\/div><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reconcile Foreign currency Supplier Payments using a GBP bank account 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\u00a34,108.23, in Feb and are quoted an exchange rate of 1.3000 by the bank. There are additional \u00a35 fx charges applied &nbsp; <a href=\"https:\/\/sagefinancialsknowhow.com\/foreign-currency-supplier-payments-using-a-gbp-bank-accountm2\/\" rel=\"nofollow\"><span class=\"sr-only\">Read more about Foreign currency Supplier Payments using a GBP bank account (new method)<\/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\/887"}],"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=887"}],"version-history":[{"count":0,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/posts\/887\/revisions"}],"wp:attachment":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/media?parent=887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/categories?post=887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/tags?post=887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}