I invoiced a client 171 Euros and received 144.22 GBP. I logged a payment to reconcile the euros to gbp. How do I tag this payment to the entry in my current account?
You would have to do it from the invoice side of things because of the difference in the currency.
If you go into the invoice and click âLog Paymentâ, you can enter the GBP alternative as well as mark the invoice as âfully paidâ. This will then create a new bank transaction which leaves you with the original transaction untagged.
The original untagged entry can then safely be deleted.
Hope that helps!
Got it. Thanks Matthew
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Hi,
I have the same problem, but deleting bank payments is not a solution. Bank transactions does not exactly match supplier invoices plus payments are in GBP and invoices are issued in a different currency. Log payment option from invoice will record payment of supplier account in EU currency, where bank payments are in GBP.
There has to be a way to deal with it?
Many thanks.
The only way to tag a payment in a different currency to the invoice, is by logging payment from the invoice itself because of the currency exchange rates.
Would that get a little messy if say you have 20+ invoices for the one supplier but obviously only making one payment transaction?
The recommendation in this case would be to use a dummy holding account. Pay the non-GBP invoices to the dummy account, and then have 1 transfer transaction to/from your main current account to the dummy account.
This way you keep your bank statement in sync (e.g. thereâs only one line for the payment) and all the invoices are paid up.
No I had a dummy account (holding account) before when I started using QF and my accountant advised to get rid of it as this was not a good way of recording my accounts so I phased it out. I will obviously have to go in to each and every invoice at month end and adjust the rate for the day I am paying the account and unfortunately this will be even more confusing if and when I have to pay the account short ie: queries on certain invoices hence just making a payment on account.
Providing everything balances (e.g. thereâs no balance left in the holding account) then it wouldnât have any effect on your accounts - it wouldnât show on your balance sheets for example.
The same concept would apply if you used a payment processor (like PayPal or Stripe), or if you have 1 deposit for many clients (like a cheque deposit).
At the moment, this is the only way to handle the break down of one transaction to many invoices in this scenario - where a non-GBP currency is used.