Bank entries can be added manually, or automatically from within the Bank Statements module.
Using a different exchange rate
If payments are made in a foreign currency, you can use an exchange rate that differs from the rate defined on the Currencies form. Due to an exchange rate difference, the actual amount paid may differ from the amount of an open item in the company currency. You can enter one amount in the invoice currency and the other in the bank account currency. If during this entry a rate other than the invoice rate is used, the exchange rate difference will be journalized automatically. To display the rate, drag the column on the form.
A company sends a $100 invoice to its foreign customer. When entering the invoice in the sales day book, the invoice amount is translated into the company currency in euro, based on the rate defined: 1 euro=1.112 dollars. The transaction amount amounts to $ 100 / 1.112- = € 89.93.
The debtor pays the invoice amount in full, but the company only receives € 82.58 from the bank, because the bank uses a rate of 1.211 ($ 100 / 1.211 = € 82.58). In the cash/bank day book, the company registers the amount in dollars and the amount received in euros. The corresponding rate will be calculated automatically. Instead of making an adjustment in the cash/bank day book, it is also possible to make an adjustment in the bank statement.
Sales invoice has been created
Day book line in sales day book (LDGR 1300/Debtor in euro)
A company sends a $100 invoice to its foreign customer. When entering the invoice in the sales day book, the invoice amount is translated into the company currency in euro, based on the rate defined: 1 euro=1.112 dollars. The transaction amount amounts to $ 100 / 1.112- = € 89.93.
The debtor pays 25% of the full invoice amount. Instead of € 22.48, the company only receives € 20.64 from the bank, because the bank uses a rate of 1.211 ($ 100 / 1.211 = € 82.58).
Sales invoice has been created
Day book line in sales day book (LDGR 1300/Debtor in euro)
LDGR
Invoice/reference
Currency
Currency amount
Transaction amount
Rate
8400/Turnover
20194444
Dollar
$ 100
€ 89.93
1.112
Journal
LDGR
Invoice/reference
Currency amount
Transaction amount
Invoice amount
Invoice currency
1300/Debtor
20194444
€ 89.93
€ 89.93
$ 100
Dollar
8400/Turnover
20194444
€ -89.93
€ -89.93
Open item
Invoice/reference
Currency
Debit currency amount
Outstanding currency amount
Debtor amount
Outstanding transaction amount
20194444
Dollar
$ 100
$ 100
€ 89.93
€ 89.93
Invoice amount was paid using a different rate
Day book line in cash/bank day book (linked LDGR 1200/Bank in euro)
Posting exchange rate differences if exchange rate change results in difference between invoice amount and amount paid