Creditor payments are handled in the finance & administration module..
Creditor payments don’t always match so, this article takes you through the steps to handle those differences. The differences are usually due to exchange rates or bank fees.
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RECEIVING THE PAYMENT
In this scenario we’ll look at a payment to a creditor in a different currency.
We owe Studio Commercial Photography $300USD. Workbook has it’s own currency rate which is updated daily (depending on your system) and it expected the amount to come out of the bank to be $455.72. In fact, $450.12 came out of the account.
To change the amount to what was actually received the currency rate needs to be changed to:
$450.12 / $300 = 1.5004 x 100 = $150.04
OR
Change the currency from USD to AUD and enter the received amount in the amount field
Either way you enter the journal, this leaves a balance of $5.60 in the amount outstanding:
Finalise as usual
REMAINDER HANDLING
Go to debtors > debtors list > and select the client (in this case it’s Sephora) >
Go to the remainder handling tab > you’ll see the remainder amount (in this case it’s $47.65)
In the remainder cost codes column > select the remainder code that applies from the drop down box (in this case it’s currency difference)
Finalise selection by clicking the finalise selection button
Add the date of the transaction
Click ok
This will finalise a journal entry to transfer the balance from the debtor to the currency difference account.