Paying a foreign currency bill from a sterling bank account

Question asked by Richard Cooper 11 years ago

I'm trying to paying a foreign currency bill from a sterling bank account. When I created the bill in clearbooks I only knew the dollar value so I just accepted the recommended exchange rate. I'm now importing my bank statement and, of course, the sterling payment amount doesn't match the sterling value of the bill.

What's the recommended solution to this problem?Should I just edit the exchange rate of the original bill to produce the correct sterling amount? Or maybe I should allocate some of the payment to forex losses? Or something else?

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5 Replies

Hi Richard

Nail > head...forex loss it is.

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Best answer
11 years ago

Hi Farinaz,

The best way to account for the overpayment would be by creating a "dummy" invoice and allocating the extra funds. The account should be Forex Movement when creating the invoice, to balance it on the balance sheet.

Thanks, Theo

8 years ago

Hi

What if after the payment there is a gain? as if the payment which we processed in sterling is more than invoice amount which was in Euros. How can I write off that overpaid amount?

In the bank currency is being calculated correctly with payment but because i'm using hmrc exchange rate it's different.

Many thanks

8 years ago

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