An invoice in USD was recorded & paid in March to an EU supplier, and I now realise the exchange rate is wrong (not as per HMRC rate) on the invoice, so the sterling equivalent is not correct for the VAT Return - I’ve tried to edit it but the although the box will allow you to place the cursor in it, I can’t change the entry.
You should be able to modify the exchange rate on an invoice providing there are no payments associated to it. If the invoice is paid, remove the payments, modify the rate then repay the invoice.
Did that, put the rate in, but when I tag the payment to the bank a/c entry the exchange rate is the same as before presumably pulled from xe.com. So now the invoice record has the HMRC rate on it, but the payment record has the xe.com rate - can this be turned off so the exchange rate always has to be set manually? On the account settings screen the exchange rate source is ticked for xe.com and can’t be unticked. Have always used HMRC rates in past.
We only use xe.com to source rates so if the invoice and payment was made on the same day they should have the same rate. If you’re paying the invoice into a GBP bank account you should know the amount received in GBP, by reference to this and the original invoice amount in USD the ex-rate will be inferred. If you are paying into a USD bank account then you can override the rate.
My supplier sent me an invoice and it has GBP currency instead of USD and so he changed the currency and sent me an email of the modified amount in the correct currency. When I checked my account, his invoice is still in GBP and so I could not pay him now. What can we do to see the modified amount and proceed with paying it?
Is your supplier linked to your account through Quick File?
It was a USD invoice paid from a USD account. We just want to keep the currency loss accurate and HMRC happy.
When you log the payment, you can’t change the exchange rate but you can modify the amount received in GBP, which will indirectly change the exchange rate. The USD invoice will have a GBP value based on the HMRC rate you used. If you enter this same GBP amount when logging the payment it will assume the same rate.
OK, thanks, I think I understand now - but I still think an option to completely manually set exchange rates should be added.
We’re looking at this, I can’t promise anything. The other thing we want to do is just add a button to “Match Invoice”. A lot of people tend to just post payments without any currency loss/gain, particularly if you’re just buying some item in a shop and there’s no deferred period between invoicing and payment.