Re: [SL] Cross currency invoice entry

[Dr E. L. <el...@li...>]

Ed,


on 1/29/07 1:52 AM Ed W said the following:
> Hi
> 
> I obviously appreciate your assistance, but you appear to be *telling* 
> me things without *explaining* them?  Since I don't understand your 
> point I'm not really any further ahead.
> 
>>> a) The invoice has to get entered today in foreign currency
>>>     
>> No, it does *NOT*. Neither today, nor in a foreign currency, nor via AP.
>>   
> 
> Well, I think it does.  Can you please explain why you think otherwise?

The point is it does not *HAVE* to be entered as Accounts Payable.

It may, but it also may be entered as a straight General Ledger entry,
which avoids all this nuisance :-)-O.

>>> b) I might not pay the bill for 1-6 months time, hence I won't have an 
>>> actual rate for it until after a year end of tax quarter.  Therefore I 
>>> need to account for it on an accrual basis
>>>     
>> No, you don't.
>>   
> 
> Again, why not?  For example my vat return is going to look very 
> suspicious if I state my taxes paid, but don't offer any revenue to 
> support the tax reclaim...

The point here is that you *can* *NOT* pay or claim UK taxes on a US
purchase.

Thus you can not reclaim VAT in the UK for an invoice made out in the US.

And thus you just bang it straight of the bank account against whatever
account your purchase goes into. Even if you pay tax in the US it is
still *ALL* the same expense.

>> Since it does not involve local taxes you can do it with a GL entry when
>> you (eventually) pay.
>>   
> 
> I believe you, but I'm none the wiser on how to do this?  This was my 
> initial question really - *how* to enter it...

GL entry.

el