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Application Differences - Sales & Purchase Ledgers - Entering Payments and Payment Adjustments

Datafile Software

Application Differences - Sales & Purchase Ledgers - Entering Payments and Payment Adjustments

For payments on non-base rate currency accounts, the same total value, exchange rate, converted value and fixed rate questions are asked as for other transactions described above. The bank account chosen is that given as the default for the currency chosen.Either a bank account for the currency concerned or a base currency bank account may be chosen here. You cannot choose a bank account for a different currency, however.

At present, should you wish to settle a foreign currency account in other than its specified or base currency, then you will need to define "internal” bank accounts against which to make the payment — either in the currency of the account or in the base currency. Make a payment to the account in the usual way, and separately (in the nominal ledger or cashbook) enter the third currency received and contra to the internal bank account. Internal accounts should have a zero balance, so any non-zero value can be written off to exchange differences at the end of the period.

Note

Making payments through the cashbook makes life simpler, because the operation can be done in one step. Enter a zero-valued transaction against a pre-defined internal base currency bank account. The account currency value can then be posted as one transaction, with the currency received as a second, negative-valued, transaction to the bank account in which it was banked. Any difference can now be written off to the exchange differences account as a third element of this transaction.

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