I have trouble properly accounting for cash withdrawals in a foreign currency, where bank fees are involved.
I have used my debit card to get 50 EUR cash. Exchange rate makes that 48.56 EUR, and my bank took 2 GBP foreign currency transaction fee, crediting my bank account with a total of 50.56 GBP. So far, so good.
Since I pay things with EUR in cash, I have set up a EUR petty cash account. Now I can tag the bank transaction from my current account to the EUR petty cash account, resulting in a 50 EUR to 52.56 GBP transaction - but I can’t split that transaction to reflect that the bank took 2 GBP charges, no can I attach receipts to that!
I can’t use a manual journal, because that (to my knowledge) doesn’t support currency conversion, and accounts in the company default currency only anyway.
How do I account for the 2 GBP bank charges properly in this and future cases?