Hello,
I have a supplier in Australia and decided to pay a bill with Transferwise. I created a new purchase with the amount in AUD that I had to pay.
I now have two entries in my bank account: the initial payment to Transferwise (that includes the fee and exchange rate protection), and a partial refund from Transferwise (part of the exchange rate protection that was unnecessary).
What is the correct way to tag the transfers?
Thanks !
Hi @Pivic, have you created an invoice for the initial payment?
If so did the amount received match the invoice value or were you paid minus of fees?
Hi @PeterK, I created a purchase with the supplier’s name and the total to pay in AUD.
I haven’t tagged the bank feed yet. The first to tag is the AUD converted to £ + fee + exchange rate protection that came out of my account. The second item to tag is the exchange rate protection that came back to my account.
You would need to follow this guide, which would involve creating a separate bank account called “TRANSFERWISE”. This account would document the Invoice payment, less any fees… the net balance then is tagged as a transfer to your current account.
Firstly you should open a bank account dedicated to Transferwise (name it after service provider). This merchant accounts, as referred to in QuickFile, can be created in the Bank Management area.
The merchant account provides you with a ledger where you can handle all the payments and processing fees without messing up your current account or invoices.
You can read more on this in our Knowledgebase:
Handling Payments from Merchant Accounts
and
Thanks a lot for your help!
I tagged both entries from my current account as Bank transfers to a new Merchant account called Transferwise.
Then I went to the purchase, Log a payment, ticked paid in full, wrote the actual amount I paid and selected the Transferwise account.
The leftover on the Transferwise account were the fees so I Input a new transaction with for reference Transferwise fees and selected Money out. Tagged it as payment to a supplier and created a new one called Transferwise and selected Bank Charge with NO VAT.
Thanks !
Sounds exactly right!
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