How to post foreign currency transactions You post foreign currency invoices, orders, bank transfers, and transactions in the same way as your base currency postings. The only differences are: - You enter the foreign currency amount instead of the base currency value. For example, if an invoice is 100 Euros, you enter 100.00
- There's an extra field to show the exchange rate that will be used for the transaction. You can amend this if required
TIP: For more information about the exchange rate settings, see our currency option and the currency calculator article.
Automatic revaluation postings When you post a foreign currency transaction, Sage 50 Accounts automatically records the base currency value using the exchange rate entered. If exchange rates later change, you may see differences in base currency values when allocating transactions, such as an invoice and payment.
To account for these exchange rate differences, Sage Accounts posts automatic revaluation transactions with the following details: | A/C | Date | Ref | N/C | Dept | Details | Net | T/C | VAT | | Customer or supplier account reference | Receipt or payment date | REVAL | Exchange rate variance, by default 7906 | 0 | Currency Reval [amount] to [transaction type and number] | Revaluation amount | T9 | 0.00 | For more information about revaluation postings, choose your VAT scheme below: Customers If you use different exchange rates on a customer invoice and the payment or credit you allocate to the invoice, the following automatic revaluation transactions are posted to your customer's records: - If a sales invoice is paid by a sales receipt, which uses a higher exchange rate - This leaves an outstanding amount on the sales invoice in the base currency, to correct this the software automatically creates a sales credit (SC) and allocates this to the sales invoice (SI)
- If a sales invoice is paid by a sales receipt, which uses a lower exchange rate - This leaves a sales payment on account in the base currency, to correct this the software automatically creates a sales invoice (SI) and allocates this to the sales payment on account (SA)
Suppliers If you use different exchange rates on a supplier invoice and payment, the following automatic revaluation transactions are posted to your supplier's records: - If a purchase invoice is paid by a purchase payment which uses a higher exchange rate - This leaves an outstanding amount on the purchase invoice in the base currency, to correct this the software automatically creates a purchase credit (PC) and allocates this to the purchase invoice (PI)
- If a purchase invoice is paid by a purchase payment which uses a lower exchange rate than the purchase invoice this leaves a purchase payment on account in the base currency, to correct this the software automatically creates a purchase invoice (PI) and allocates this to the supplier payment on account (PA)
▼ VAT Cash Accounting If there's no VAT involved the revaluations are posted in the same way as Standard VAT. However if there's VAT on the transactions Sage posts the following revaluations: Customers If you use different exchange rates on a customer invoice and the payment or credit you allocate to it, the following automatic revaluation transactions are posted to your customer's records: - Sales invoice paid by a sales receipt with a higher exchange rate - This leaves an outstanding amount on the sales invoice in the base currency but also leaves the VAT amount too low as this should match the VAT amount on the invoice. To correct this the software automatically creates a sales invoice (SI) to correct the VAT value and then a sales credit (SC) to correct the net value and the tax control account. It then allocates both of these to the sales invoice (SI) and the sales receipt (SR)
- Sales invoice paid by a sales receipt with a lower exchange rate - This leaves a leaves a sales payment on account in the base currency but also leaves the VAT amount too high as this should match the VAT amount on the invoice. To correct this the software automatically creates a sales credit (SC) to correct the VAT value and then a sales invoice (SI) to correct the net value and the tax control account. It then allocates both of these to the sales invoice (SI) and the sales receipt (SR)
Suppliers If you use different exchange rates on a supplier invoice and the transaction you allocate to it, the following automatic revaluation transactions are posted to your supplier's records: - Purchase invoice paid by a purchase payment with a higher exchange rate - This leaves an outstanding amount on the purchase invoice in the base currency but also leaves the VAT amount too low as this should match the VAT amount on the invoice. To correct this the software automatically creates a purchase invoice (PI) to correct the VAT value and then a purchase credit (PC) to correct the net value and the tax control account. It then allocates both of these to the purchase invoice (PI) and the purchase payment (PP)
- Purchase invoice paid by a purchase payment with a lower exchange rate - This leaves a leaves a purchase payment on account in the base currency but also leaves the VAT amount too high as this should match the VAT amount on the invoice. To correct this the software automatically creates a purchase credit (PC) to correct the VAT value and then a purchase invoice (PI) to correct the net value and the tax control account. It then allocates both of these to the purchase invoice (PI) and the purchase payment (PP)
View the revaluation transactions To view the revaluation transactions you must view the activity in the base currency. To do this: - Go to Customers or Suppliers and double-click the relevant record.
- Select the Activity tab, then select View in pounds. This button changes depending on your base currency.
|