Invoice in USD but payment in GBP how do I log this?

[Skyncare]

Hi,

We recently started importing items from China. We pay China for the items in USD from our UK account via bank transfer.
The items are then shipped to us and we pay UK VAT and Duty on arrival into the country. This is then invoiced to us by DHL.

Question 1 - Do I log this invoice into QF as a USD invoice or a GBP invoice? If a USD amount how do I do this?

Question 2 - I need to add these payments to our VAT return and unsure as to how to log them.

Do I log the payments and invoice from our China supplier as one invoice and paid in full and then log the DHL invoice as a separate invoice and paid in full?

Thanks!

[Glenn]

When you create a USD invoice and log a payment you will have the option to enter the USD amount and GBP equivilent (the amount leaving your GBP bank account).

As long as there’s VAT on the original USD purchase invoice this will get picked up on the VAT return.

[Skyncare]

Thanks Glenn,

The VAT is on a separate invoice from DHL as they paid this to HMRC and then claim it back from me. So I will submit the VAT via the DHL invoice.

Thanks.