My understanding is that if an invoice is created in a foreign currency - at that point Quickfile will automatically convert the invoice to GBP (base currency) the invoice will display in the currency.
Not sure how you know what the currency conversion rate is.
At this point an unrealised currency gain/loss is shown
At the point of payment (assuming payment is made in the currency). Then the rate of currency at the time is automatically shown. At this point we have an realised Currency gain/loss.
My understanding is that if I was now to look at Debtors account
That the payment plus the currency/gain loss is = to the amount of the invoice in GBP but this is not the case.
Example
Invoice in PLN for 1040 (at the time 19/09/2012) is £201.43
Payment received 19/10/2012 amount received 1040 at the time currency says 5.0354 but it shows in the Debtors control account as £204.83 should show as 206.54 - realised currency gain £5.11
Why does it show the wrong translation - this means that the balance on the debtors at the end of the year is incorrect.
Can I also pay a UK invoice is £ invoice from a foreign currency account?
When you create a foreign currency invoice it will have a field for the exchange rate, this is pre-populated based on information delivered from XE.com. When the invoice is later paid there will be another rate, on the payment date. From there we calculate the realised currency loss/gain and report this separately on a dedicated P&L code.
So the invoice has been converted to GBP at whatever rate was in place at the time - (obviously I cannot see this any more as the invoice has been created)
Then the invoice is paid and of course the rate is different at that time.
Please note these invoice are in foreign currency and are paid in the same currency (in this case PLN) so the conversion is just for the Accounts and for display.
So I look in the debtors file (Chart of Accounts) and it shows the invoices as an invoice (balance owing) transalated to £s at the date of the invoice, (using probably XE rate for that day taken at some point), it also shows the currency loss/gain as well - which is also showing when I look at the actual invoice at the top. (at first when unpaid it is unrealised, then when paid realised) Then it shows the amount paid in £s. I would expect that the payment plus (or minus) the currency flucutation = the amount of the invoice
but it does in some cases and other it does not.
the net result of this is that the debtors should be showing the total outstanding invoices translated to £s and that is all but because some of these are showing incorrectly in the debtors file - then the outstanding amount is incorrect.
Debtors file shows some of the payments correctly but most incorrectly - the currency fluctuation is always correct - please advise
Also how do I pay an £s invoice from a foreign currency account. Can I do this? I have searched but cant find this seem to remember something about this before but can not now find it.