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Amount of invoice overpaid due to different fx rates


#1

How to account transaction if
Amount invoice 2000.00GBP

was paid and registered on bank statement
2153.75 GBP PAIDFULL

The invoice is overpaid in amount of 53.75 GBP.

Thanks,
Dan


#2

Hi Dan

Are the invoice and the bank transaction in different currencies, or are they both GBP?


#3

It is the same currency GBP. I have sent in invoice to client in Europe 2000GBP or example 2500EUR.
Cleint has paid me in EUR and my bank converted it automaticly in GBP.
As a result as GBP went up to EUR, I have received more, lets say 53.74£.
What is the way to account?

I think that the difference I should represent in P&L
Exchange Rate Variance (7906) account.

Thanks,
Dan


#4

it is 153.74 not 53.74, was my mistake.
If I reduce amount of invoice to £2000, the differnce is -153.74 and doesnt allow me to save.
I would like somehow tolog rest -153.74 goes to Exchange Rate Variance (7906) account.


#6

Hi @dan.l

Something such as the following may work.

You could treat the overpayment as just that and pay off the invoice and treat the rest as a prepayment towards future work. To do this, tag the money in transaction as a payment from a client and use the “pay down multiple invoices” option.

The rest will then sit on the client’s account and can be used against any other outstanding invoices.

I hope that helps!