we recently cancelled out web host but they had already taken the payment, so refunded us. but the refund was around £2 less that the expense due to rate of exchange $ to £ how do i tag/ account for this difference?
If you recorded the original purchase in the foreign currency then QuickFile would handle the discrepancy via the “currency charges” nominal account, so for a purchase recorded in GBP you could do the equivalent by hand:
- refund the purchase in full into a spare bank account like drawings/director loan
- tag the (£2 less) money in to your current account as a transfer from the same drawings/DL account
- manually create a money out transaction on drawings/DL for the £2 difference and tag that as “something else not on the list” to currency charges
This is effectively what would have happened if you had handled it with foreign currency transactions, albeit in smaller chunks at each stage rather than in one lump at the end.
Thank you for your help! I will give that a try!
happy New Year
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