Changing Euro Exchange Rate

[eftlizzie]

Continuing the discussion from Invoice Paid in Sterling against invoice created in Euros:

@Glenn

You can’t do this directly from bank tagging. However the guide below applies, even though this is for a purchase invoice, same principle applies for sales invoices.

Paying Euro supplier invoices in GBP - #2 by Glenn

[eftlizzie]

Sorry but now that I have logged the payment I realise that the exchange rate use is different to one we use. We use the bank’ exchange rate of 1.2836 and not the XE exchange rate so now it looks as though they owe us much more than they actually do. Can I choose the exchange rate?

[Glenn]

You don’t really get to choose the rate. The invoice is x EUR and you pay y GBP. The exchange rate is inferred from this. That’s why when you enter the payment you enter the amount received in GBP and the amount in EUR being deducted from the invoice. The difference between these two figures is the exchange rate.

Any different from the invoice rate and the payment rate is automatically calculated as a currency loss/gain and allocated to currency charges accounts (7902).