Dealing with currency accounting in Platinum?

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Summary

Occasionally, you may have to deal with a supplier/customer in a different currency. The following article explains how to do this.

More Information

In this example, we are going to deal with the process of posting a purchase invoice and then paying it off.

Posting an Invoice/Credit Note

  • Make sure the supplier has had the correct settings applied to their account.
  • Post the purchase invoice onto the purchase ledger in the normal way.
    • Enter the "Nett" amount in the supplier's currency and press <Alt+E>.
    • The amount will be converted into your base currency.
    • Press <F2> to choose the converted rate.

Posting the Payment

When the time comes to pay the supplier:

  • Enter the "Payment" amount in the supplier's currency and press <Alt+E>.
    • The amount will be converted into your base currency.
    • Press <F2> to choose the converted rate.

It is assumed at this point that there has been a difference in the exchange rate from when the invoice was posted to when the invoice was paid.

  • Post the payment as normal then return to the payment screen. Pay off the amount left, whether over or under, to a Nominal Code called Currency Fluctuation.
    • if this code does not yet exist in your system please see this article to create a new code. If necessary seek advice from your accountant as to how to classify the code e.g. as a Profit & Loss Overhead, Profit & Loss Cost of Sale or other category.

See also


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Keywords AND Misspellings
Purchase, Invoice, Posting, currency, sterling, exchange rate, convert, conversion, fluctuation, euro, GBP, dollar, foreign, currancy