Cross Currency

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We have a full mix of CDN and USD customers.

For the most part if someone in invoiced in USD they pay in USD. However we are now having some cross currency issues.

We have a customer who has been invoiced in CDN and has paid the full amount in USD. I cannot figure out how to apply the cash to the invoice as well as realize the gain. "Cash receipts" allows me to have a CDN currency ID (which allows you to see the invoice in the apply screen) if it is USD you cannot see it as it was invoiced in CDN. If I process the payment in USD and use the "apply sales documents" afterwards I cannot write off the outstanding amount or push it into realized gains. It just says as a credit on the customers account.

Help?

We are having this issue with CDN invoices being paid in USD and USD invoices being paid in CDN.

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Heather Roggeveen 9,146 on at

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RE: Cross Currency

Hi

I have been dealing with this issue just today with a client. In general, it is best to always make the payment against the invoice in the same Originating currency. Then it takes care of the gains and losses.

I am assuming that you have USD as functional currency and CDN is the originating currency. (If I assume incorrectly, then just switch currencies with the following comments.)

If the invoice was processed in CDN, but the payment was made in USD, you have to decide whether they still owe you money (or you owe them). Chances are, they have paid you the correct amount. Process an invoice or credit note as appropriate in USD and apply to the remaining balances. Code the credit or invoice to gains/losses and I would say that it is tax exempt (it would be here in NZ).

That should clear the balance correctly.

Essentially, you need a zero balance in your functional currency, and that will take care of the overall balance.

Does that make sense?

Cheers

Heather