Hi team,
Why can’t tag refund from a customer if amount is slightly different? For example ticket bought on 18.10.2024 GBP 84,91, refunded on 21.10.2024 GBP 86.61. As was paid in USD, refunded anount is different due to exchange rates?
Thanks,
Dan
“Refund from a customer” - do you mean to a customer or from a supplier? What currency was the original invoice (from you if it’s a sale, from the supplier if it’s a purchase) denominated in?
Refund from a supplier, my mistake.
Train ticket paid in USD, then refunded.
The way to handle this is to turn on multi-currency in QuickFile if you haven’t already, and record the original purchase in the currency of the receipt - USD. When you pay for a foreign currency purchase you can record a cross-currency payment from GBP to USD no problem.
Then when it comes to the refund, you can credit the original (USD) purchase in full and specify the GBP amount you received as a refund.
All the currency fluctuations are handled by QuickFile as part of the cross-currency payment process.
Will that help? This account is in GBP, we pay and receive always GBP, for example if bill is 126USD, we will pay 100 GBP, and that will reflect on our statement.
Yes, the purchase is denominated in USD but you can still make a payment from a GBP account.
You made a purchase worth $126, and you paid $126 for it - £100 left your account but the amount you paid the supplier was $126.
When they refunded you, they refunded $126. The amount you received in your bank account may have been £95 but that does t change the fact that the refund was the full value of the original purchase ($126).
The currency variations are handled by QuickFile for you. The $126 purchase gets valued for your P&L according to the xe.com exchange rate for the purchase date. Your payment exchange rate is calculated from the fact that you paid £100 and the purchase was $126. Any difference between the £100 you paid and the GBP-equivalent value of the purchase is automatically assigned to “currency charges”.
Similarly when the purchase is credit-noted, this reverses the original GBP-equivalent purchase value off your P&L. Any difference between this value and the amount of GBP you actually received as a refund also goes into “currency charges”.
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