Hi there,
We are a business that trades in EUR as well as GBP (and we do not exchange funds upon receipt - contrary to current set up on QuickFile by default).
Once invoice is issued in EUR using QuickFile software and payment is received from the customer into EUR account we input transactions accordingly to mirror the input into EUR account and tag it respectively. (We have both currency accounts at the bank and with QuickFile).
Our issue is related to automatic exchange EUR-GBP on QuickFile.
We do not exchange funds immediately but leave them in EUR account (this is not reflected on QuickFile, rather EUR value is exchanged by default into GBP that is not a true reflection of our accounts.)
How do we go about arranging for a true reflection of our invoices in both currencies, banking and the reports that are currently paid into EUR and will eventually be exchanged at later date?
Thank you
Looking forward to hearing from you
Kind regards,
Inga
When you pay a EUR invoice into a EUR account QF will apply a rate that is pulled from xe.com to work out the GBP equivalent. This GBP amount can be overridden when you lodge the payment.
Now when you exchange EUR to GBP QuickFile will also allow to specify a GBP value on the receiving end. This may leave a currency loss/gain sitting on the EUR account, typically what you would do then is periodically journals this out.
Is there a way to view ‘at a Glance’ accounting in both currencies? So we can distinguish our European invoicing/accounting to invoicing/accounting in GBP?
Also, is there a way to disable the automatic FX feed as it confuses the accounting on GBP accounts (as do not convert funds into GBP upon receipt of an invoice and probably will not until the end of financial year).
If you view the ledger directly from the Chart of Accounts you can then drill down on the EUR account and see the GBP values. Right now it’s not possible to see them side-by-side in the bank statement view although this is something we are looking to implement.
Every entry going into the nominal ledger does need to have a GBP value pegged against it. All base reporting is in GBP so the system needs to record this. The only way to adjust this is to journal it periodically, normally it’s something you would do as part of your year-end adjustments, i.e. to revalue the account in GBP.