A supplier has, rather irritatingly, chosen to send payment in Euros against an invoice which I sent them in GBP. When I try to tag the EUR payment received as partial payment against the GBP invoice Quickfile tells me that it can’t find any unpaid invoices and just adds a credit tot the client account in EUR. I had expected to be able to log payments received in any currency against an invoice in any other currency, using the value in GBP on the day received and the day invoiced with Quickfile’s automatic currency conversion, but Quickfile doesn’t seem to work like that. What’s the right way to do this please?
If the invoice is in EUR you can log payments in EUR or GBP, if the invoice is in USD you can log payments in USD or GBP, etc. You can’t log payments from one foreign currency to another.
I don’t know whether it’s possible to log non-GBP payments against a GBP invoice, I’ve never tried this, but if it is you’d almost certainly have to do it via “log payment” on the invoice itself rather than by tagging a bank transaction.
If it doesn’t let you do this then you’d have to use a GBP bank account as an intermediary - tag the money in on the EUR account as a bank transfer from a spare GBP account (either drawings/director loan, or a separate merchant account you create for cross currency payments), then log payment against the GBP invoice into the same GBP bank account to net off. The customer’s statement will show the payment in GBP, not in EUR.
The invoice is in GBP, but the client is European and for some reason chose to (partially) pay this invoice in EUR. It doesn’t seem to be possible to log non-GBP payments against a GBP invoice, which is quite frustrating as it seems possible to do it the other way around. I can either recreate the invoice in EUR, or I have to do one of the methods you suggested, neither of which I like because it would create phantom transactions on real bank accounts. Seems like I need to add a feature request for crediting non-GBP payments to a GBP invoice.
If you don’t want “phantom transactions on real bank accounts” then you would need to do it the way I suggested but create a dedicated GBP-denominated “merchant” type bank account in QuickFile rather than using your director’s loan/drawings account.
The EUR transaction that came in to your EUR-denominated bank account would be tagged as a bank transfer from the merchant account (and this is the point where the currency conversion happens), and the invoice you would “log payment” into the merchant account for the same GBP value to balance it out. The “real” accounts only show the real transactions.
Journals in QuickFile are completely separate from invoices and payments, they don’t tie back to customers, they don’t figure in VAT returns, etc.
Hi @ian_roberts,
Thank you for your help, I finally got that done, but gosh it was a faff!
When I said journal, I probably was using the wrong term, but I basically meant move funds from a customer’s EUR account balance to their GBP account balance. A simple way to do this would have avoided a lot of faff.
