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From: Ed W <li...@wi...> - 2007-01-21 19:45:32
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OK, so I have only sterling bank accounts, but I have an invoice from a supplier in USD. I go to the bank and buy dollars using sterling and then wire the money to the beneficiary ....Now how to best enter this into the accounts system..? I had previously been taking the rate that I got on my USD transaction and converting the invoice into stering at this rate, but it's awkward and error prone. I now want to use the accrual type system and an FX account. So I enter in the invoices in USD. I then use the "payment" function to pay the invoice in USD, which I believe will leave me with a calculated GBP amount against my cash account. Now the remaining bit is how to post the balancing item into an FX reserve account so that the correct amount of GBP is shown...? Can anyone talk me through the best way to do this last step please? Cheers Ed W |
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From: Ed W <li...@wi...> - 2007-01-24 14:29:06
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Bump... ...Anyone...? How to enter foreign currency invoices..? Ed W Ed W wrote: > OK, so I have only sterling bank accounts, but I have an invoice from a > supplier in USD. I go to the bank and buy dollars using sterling and > then wire the money to the beneficiary > > ....Now how to best enter this into the accounts system..? > > I had previously been taking the rate that I got on my USD transaction > and converting the invoice into stering at this rate, but it's awkward > and error prone. I now want to use the accrual type system and an FX > account. > > So I enter in the invoices in USD. I then use the "payment" function to > pay the invoice in USD, which I believe will leave me with a calculated > GBP amount against my cash account. Now the remaining bit is how to > post the balancing item into an FX reserve account so that the correct > amount of GBP is shown...? > > Can anyone talk me through the best way to do this last step please? > > Cheers > > Ed W > > > ------------------------------------------------------------------------- > Take Surveys. Earn Cash. Influence the Future of IT > Join SourceForge.net's Techsay panel and you'll get the chance to share your > opinions on IT & business topics through brief surveys - and earn cash > http://www.techsay.com/default.php?page=join.php&p=sourceforge&CID=DEVDEV > _______________________________________________ > sql-ledger-users mailing list > sql...@li... > https://lists.sourceforge.net/lists/listinfo/sql-ledger-users > |
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From: Dr E. W L. <el...@li...> - 2007-01-24 15:08:39
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Simple, paste the slip from your USD purchase onto it and account the amount in Sterling. That way even the bank charges get accounted. el Ed W wrote: > Bump... > > ...Anyone...? How to enter foreign currency invoices..? > > Ed W > > > Ed W wrote: >> OK, so I have only sterling bank accounts, but I have an invoice from a >> supplier in USD. I go to the bank and buy dollars using sterling and >> then wire the money to the beneficiary >> >> ....Now how to best enter this into the accounts system..? >> >> I had previously been taking the rate that I got on my USD transaction >> and converting the invoice into stering at this rate, but it's awkward >> and error prone. I now want to use the accrual type system and an FX >> account. >> >> So I enter in the invoices in USD. I then use the "payment" function to >> pay the invoice in USD, which I believe will leave me with a calculated >> GBP amount against my cash account. Now the remaining bit is how to >> post the balancing item into an FX reserve account so that the correct >> amount of GBP is shown...? >> >> Can anyone talk me through the best way to do this last step please? >> >> Cheers >> >> Ed W >> >> >> ------------------------------------------------------------------------- >> Take Surveys. Earn Cash. Influence the Future of IT >> Join SourceForge.net's Techsay panel and you'll get the chance to share your >> opinions on IT & business topics through brief surveys - and earn cash >> http://www.techsay.com/default.php?page=join.php&p=sourceforge&CID=DEVDEV >> _______________________________________________ >> sql-ledger-users mailing list >> sql...@li... >> https://lists.sourceforge.net/lists/listinfo/sql-ledger-users >> > > > ------------------------------------------------------------------------- > Take Surveys. Earn Cash. Influence the Future of IT > Join SourceForge.net's Techsay panel and you'll get the chance to share your > opinions on IT & business topics through brief surveys - and earn cash > http://www.techsay.com/default.php?page=join.php&p=sourceforge&CID=DEVDEV > _______________________________________________ > sql-ledger-users mailing list > sql...@li... > https://lists.sourceforge.net/lists/listinfo/sql-ledger-users |
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From: Ed W <li...@wi...> - 2007-01-24 18:48:30
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Dr Eberhard W Lisse wrote: > Simple, > > paste the slip from your USD purchase onto it and account the amount in > Sterling. That way even the bank charges get accounted. > Well, that's what I used to do, but its getting to be too time consuming to have to recalculate the whole invoice with the new rate. Also we have 30 days to pay, so the point the rate comes back is usually much, much too late. The solution is to pick a rate, then post in an accrual entry to an FX control account, but I just can't quite get my head around the required entries... Regards Ed W |
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From: Dr E. L. <el...@li...> - 2007-01-25 04:20:22
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The solution is to take the rate you get for buying the USD and to stick the slip to the invoice which you file. I have this occasionally when I pay by credit card. I take the amount that the credit card debits from my account andit is only one simple entry. el on 1/24/07 8:48 PM Ed W said the following: > Dr Eberhard W Lisse wrote: >> Simple, >> >> paste the slip from your USD purchase onto it and account the amount in >> Sterling. That way even the bank charges get accounted. >> > > Well, that's what I used to do, but its getting to be too time consuming > to have to recalculate the whole invoice with the new rate. Also we > have 30 days to pay, so the point the rate comes back is usually much, > much too late. > > The solution is to pick a rate, then post in an accrual entry to an FX > control account, but I just can't quite get my head around the required > entries... > > Regards > > Ed W |
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From: Ed W <li...@wi...> - 2007-01-25 11:10:57
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Dr Eberhard Lisse wrote: > The solution is to take the rate you get for buying the USD and to stick > the slip to the invoice which you file. > > I have this occasionally when I pay by credit card. I take the amount > that the credit card debits from my account andit is only one simple entry. > You said exactly this already - either I don't understand what you are saying or you missed my reply? The basics here are that: a) The invoice has to get entered today in foreign currency 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 I already entered my first invoice in using the foreign currency, but I am unsure how to pay it... There is a rate option in the payment page when paying a foreign currency invoice, but again it pulls out the generic rate for today (entered using a CRON job) and so again we will have a small FX deviation - I'm just not quite sure how to enter this Additionally I am not sure what is going to happen to the cost of goods once I enter the payment - will these be affected or is the rate used only to enter an FX accrual for me automatically? Ed W |
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From: Dr E. L. <el...@li...> - 2007-01-25 15:44:39
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Ed, on 1/25/07 1:10 PM Ed W said the following: > Dr Eberhard Lisse wrote: >> The solution is to take the rate you get for buying the USD and to stick >> the slip to the invoice which you file. >> >> I have this occasionally when I pay by credit card. I take the amount >> that the credit card debits from my account andit is only one simple entry. >> > > You said exactly this already - either I don't understand what you are > saying or you missed my reply? > > The basics here are that: > > 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. > 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. > I already entered my first invoice in using the foreign currency, but I > am unsure how to pay it... There is a rate option in the payment page > when paying a foreign currency invoice, but again it pulls out the > generic rate for today (entered using a CRON job) and so again we will > have a small FX deviation - I'm just not quite sure how to enter this > > Additionally I am not sure what is going to happen to the cost of goods > once I enter the payment - will these be affected or is the rate used > only to enter an FX accrual for me automatically? Since it does not involve local taxes you can do it with a GL entry when you (eventually) pay. el |
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From: Ed W <li...@wi...> - 2007-01-28 23:53:12
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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? >> 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... > 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... Grateful for any pointers Ed W |
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From: Dr E. L. <el...@li...> - 2007-01-29 15:15:19
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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 |
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From: Ed W <li...@wi...> - 2007-01-30 00:06:55
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Hi > 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. > =20 Yes, but that doesn't track my stock which is the whole point. Lets consider it more an exercise to see how this ought to be done. Purchase: 100 Widgets @ $1 50 bloopers @$2 Delivery @ $25 This is invoiced on 1st June 2006 (spot rate 1.8) There are generous payment terms and it will be paid for on 1st Jan 2007 = (spot rate 1.9) I incur a VAT charge from UK customs when the goods enter the country=20 and hence I effectively pay out 17.5% of the value on 1st June 2006 (I=20 recover it in my tax return at the end of the quarter of course). The point here is that if I don't show the cost of the purchased items=20 until 1st Jan 2007 then my cost of goods is inaccurate and also my=20 management accounts are incorrect and worse still I look suspicious to=20 the VAT office because I am reclaiming VAT on purchases that I don't=20 appear to have made To enter this I tried the following: 1) Enter in purchase invoice in USD. System converts it to nominal=20 sterling value as at 1st june 2006 2) Then enter Cash|Payment for this invoice and enter in $225 as at 1st=20 Jan 2007. System appears to pickup the rate at that date and puts two=20 transactions into the cash account, one for a $225 and the other for=20 around $106 ish (basically it seems to be doing a funny currency=20 conversion whilst still trying to make $100 =3D=3D =A3100 to keep the led= ger happy 3) Now I am stuck... Probably I have to do the reverse to actually pay=20 this thing properly, but I don't understand what is happening. 4) Additionally in real life my rate is not the spot as of 1st Jan 2007=20 and its slightly different, hence I need a second currency FX=20 gain/loss... Probably just enter this in as a transfer, but I still=20 haven't got my head around this $1 =3D=3D =A31 thing.. Does anyone else understand what SL is trying to do during the above? > 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 U= S. > =20 Well, it's a technicality, but UK customs slap me with a VAT bill when=20 the goods arrive in the country. Hence as near as damnit I pay UK VAT=20 on US purchases... Actually it's just a passthrough cost and I get it=20 back at the end of the quarter, but I still need to fill in the return=20 plausibly or I can expect a query that I have entered everything=20 correctly. There are bands of expected behaviour and if I am reclaiming = vastly more than 17.5% of my nominal purchase invoices then it's going=20 to stand out... > GL entry. > =20 Doesn't account for cost of goods where I am tracking the items Grateful if anyone can help unwind this mess for me please Cheers Ed W |
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From: Paul T. <pt...@wa...> - 2007-01-30 06:27:30
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Ed W schreef: > To enter this I tried the following: > > 1) Enter in purchase invoice in USD. System converts it to nominal=20 > sterling value as at 1st june 2006 > 2) Then enter Cash|Payment for this invoice and enter in $225 as at 1st= =20 > Jan 2007. System appears to pickup the rate at that date and puts two=20 > transactions into the cash account, one for a $225 and the other for=20 > around $106 ish (basically it seems to be doing a funny currency=20 > conversion whilst still trying to make $100 =3D=3D =A3100 to keep the l= edger happy > 3) Now I am stuck... Probably I have to do the reverse to actually pay=20 > this thing properly, but I don't understand what is happening. > 4) Additionally in real life my rate is not the spot as of 1st Jan 2007= =20 > and its slightly different, hence I need a second currency FX=20 > gain/loss... Probably just enter this in as a transfer, but I still=20 > haven't got my head around this $1 =3D=3D =A31 thing.. > > Does anyone else understand what SL is trying to do during the above? > =20 > Grateful if anyone can help unwind this mess for me please > > =20 I can think of a simple solution: CASH is a physical box with money. If you also have a USD cash box (or a couple of bucks lying around in=20 the POUND cashbox) you should probably use a separate cash account per=20 currency. In short: The cash ledger you are using for the payment is not the right=20 one. Your UK Cash account is setup by the system default to be in UK pounds=20 and will use any transactions including payments of invoices as being in=20 POUNDS STERLING. Setup a US Dollar cash or bank account, and use the actual payment way=20 AND CURRENCY to record the transaction. So either buy physical dollars from your bank, either cash or bank.=20 Deposit in USD cash or bank account. Pay invoice from there. That way SQL Ledger has a fair chance to get the 1$ <> 1=A3 bit right. |
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From: Ed W <li...@wi...> - 2007-01-30 21:11:54
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> I can think of a simple solution: CASH is a physical box with money. > If you also have a USD cash box (or a couple of bucks lying around in > the POUND cashbox) you should probably use a separate cash account per > currency. > In short: The cash ledger you are using for the payment is not the right > one. > Actually although I didnt say so in my email, I deliberately created a new ledger called something like "USD Payment Settlements" before I started. The point of this was so that I could more easily see what would happen once I hit the pay button as much as to have a seperate account However, I don't see any options to say that the cash account is in a particular currency? It seems to just convert the payment into local currency without asking? Am I missing an option? In fact what happens is that I do exactly as you say and purchase USD from a bank who wire it to my payee and I in turn wire them sterling. Grateful for more insight on *how* to actually enter these transactions please Cheers Ed W |
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From: Ed W <li...@wi...> - 2007-01-29 00:07:35
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I'm really struggling with this transaction OK, I entered my invoice in USD, but the rest of the accounts are in GBP I then entered in a payment, the rate was picked up automatically (and is slightly off what I paid). However, the checking account is then credited with the USD amount and debited by the GBP amount, leaving a net negative balance? Why is this? The FX gain/loss accounts appear to be adjusted correctly and show uplifts inline with the difference between the invoiced rate and the payment rate. I'm sure there are others here entering FX transactions, can anyone please shed some light on how to enter them please Thanks Ed W |
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From: Ed W <li...@wi...> - 2007-01-29 00:14:06
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Aha, inspiration. Presumably the expectation is that one is supposed to pay the invoice from an "FX Settlement" account. This account is debited by the foreign currency and credited by the local currency amount. Then I effectively put in a transfer to settle this payment by crediting the foreign currency and debiting the amount of local currency that I paid. The net balance in the account is the actual fx gain/loss on the payment versus the rate in the system on that day and gets transferred out. Seems awfully complicated and I'm still stumped as to how to best enter this payment into the system. The SL manual is extremely vague on what the "FX" tickboxes do - do I need to select them? Grateful for pointers Ed W Ed W wrote: > I'm really struggling with this transaction > > OK, I entered my invoice in USD, but the rest of the accounts are in GBP > > I then entered in a payment, the rate was picked up automatically (and > is slightly off what I paid). However, the checking account is then > credited with the USD amount and debited by the GBP amount, leaving a > net negative balance? Why is this? > > The FX gain/loss accounts appear to be adjusted correctly and show > uplifts inline with the difference between the invoiced rate and the > payment rate. > > I'm sure there are others here entering FX transactions, can anyone > please shed some light on how to enter them please > |
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