Paying USD invoices with an account credit paid in GBP

[CraigL]

Hi

I have 12,000GBP showing on the Account Credit of a client. I want to allocate this to an existing unpaid invoice from this client. According to your on-line help, I should go to the invoice, make a payment and the pop-up dialog box should have a tick box to “allocate payment from Account Credit”. I don’t get this option. How therefore do I pay the outstanding invoice from the Account Credit?

Thanks

Craig

[Glenn]

Is the account credit currency and the invoice currency the same? That’s the only reason I can think of that would prevent you from allocating a payment from credit.

[CraigL]

The Account Credit is GBP and the invoice is USD

[CraigL]

If the difference in currencies is preventing me allocating a payment from credit, then how do I allocate an “on account” GBP payment against multiple invoices in USD?

[Glenn]

There’s a post here that should guide you:

Paying USD invoices with GPB account credit

I have an invoice that was $30 USD and it was paid via Moneybookers as $30 USD, and appears on the bank statement as £19.01 GBP, I am trying to log the £19.01 payment as the complete payment against the invoice, I have the rate set at 1.5781 but it still won’t let me

basically you need to enter the account credit again manually from the client detail screen, specifically denominating it for use against USD invoices. Once you’ve done that just delete the original credit on the bank.

[CraigL]

I don’t think that works in my case. The Account Credits appear because I am tagging bank transactions. When you tag a transaction it is not an option to “Make credit available for” alternative currencies. I do get the option if I manually Add a Credit from the client area but if I do that, I have no link to the bank transaction.

[CraigL]

Also, forgot to add, we receive single GBP transfers that settle invoices across multiple currencies. I.e. a payment of 5,000 GBP could be paying a USD invoice and a AED invoice.

[Glenn]

@CraigL

I do get the option if I manually Add a Credit from the client area but if I do that, I have no link to the bank transaction.

It will create a new Tagged transaction on the bank when you post a credit. You then remove the other one.

@CraigL

Also, forgot to add, we receive single GBP transfers that settle invoices across multiple currencies. I.e. a payment of 5,000 GBP could be paying a USD invoice and a AED invoice.

Is this a Forex account? If it is then you actually need to create bank accounts for each currency you’re dealing with and rather than tag the payments from the Sterling account, tag as transfers to the respective Forex accounts. You then split up and pay all your invoices from there.

There’s a post here on FX accounts

I should warn you it as a more complex aspect of bookkeeping so will require some time to digest and test the setup.