Invoice date

Just wondered if you could help clarify what exchange date is used on sales/purchase dates of an invoice.

a- Is this the date of invoice
b- Date of payment

Finally could you help with the exchange rate where is this picked from.


Hello @Asmaa

All exchange rate data within QuickFile is currently supplied by . are a leading provider of foreign currency exchange rates.

More information on invoicing in foreign currency’s can be found in the below article

The invoice value is converted to sterling at the rate on the invoice date, the payment value is converted to sterling at the rate on the payment date. Any difference between the two is recorded as a currency gain/loss.

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Thank you ian_roberts much appreciated.

Wondered if anyone could confirm which date is used on the chart of dates is the payment date or the invoice date.

This is confusing as the chart complies both invoices paid and unpaid.

I am trying to provide a bit of an accurate current status of our sales so that we can plan. I am trying to use the trial balance and general sales from the chart of accounts.



Again, both at different times. Using the sales side as an example, on the date of the invoice you get

  • credit general sales (or whatever category) for the net invoice value
  • credit sales tax control account for the VAT value
  • debit debtors control account for the total invoice value including VAT

on the date of the payment it will credit debtors control and debit the bank account that received the payment (i.e. “money in” - yes, this is backwards from how you normally think about bank accounts but it is correct, money in transactions are debits, money out transactions are credits). In the case of foreign currency transactions the payment date is also the point when the exchange rate gain or loss is crystallised. The balance on the debtors control account at any given time is equal to the amount you’ve invoiced but not yet been paid, minus the amount you’ve been paid in advance but not yet invoiced.

The same for purchases - the purchase will debit the expense nominal and the purchase tax control account, and credit “creditors control”, then the payment will debit creditors control and credit the bank account that paid.

Thank you :slight_smile: for all your help again its greatly appreciated