Foreign Trader - Post foreign currency bank transfers

Base currency to foreign currency or foreign currency to base currency

1. Go to Bank accounts and select the bank account you want to transfer from.
2. Select Bank transfer and complete the Bank Transfer window as follows:
   

   From	Enter the bank account you want to transfer from.
   To	Enter the bank account you want to transfer to.
   Date	Enter the date of the transfer.
   Reference	Automatically displays TRANS. If required, you can amend this.
   Ex Ref	Enter an extra reference if required.
   Details or Description	Automatically displays Bank Transfer. If required, you can amend this.
   Department	Enter the department.
   Payment Amount	Enter the payment value of the transfer.  This value is the same currency as the bank account the transfer is from.
   Receipt Amount	Enter the receipt value of the transfer. This value is the same currency as the bank account the transfer is to.
   Exchange Rate	Enter the exchange rate for the transfer. You can enter an exchange rate with up to 6 decimal places.  The comment indicates what rate to use. For example, if the comment is One pound Sterling is worth 1.5 US Dollar, enter a rate of 1.5 would give you 1.5 dollars for every pound.

If you amend the Exchange Rate box and the currency Update method is set to Always prompt to save exchange rate changes, you can update your currencies list with the rate from this transaction. To update the currencies list with the rate from this transaction click Yes or if you don't want to update the currencies list click No.

• If you amend the Exchange Rate box and the currency Update method is set to Automatically save exchange rate changes, the new exchange rate saves to the currencies list
• If you amend the Exchange Rate box and the currency Update method is set to Never save exchange rate changes, this doesn't affect the currencies list

3. Click Save then click Close.

Foreign currency to the same foreign currency

1. Go to Bank accounts and select the bank account you want to transfer from.
2. Select Bank transfer and complete the Bank Transfer window as follows:
   

   From	Enter the bank account you want to transfer from.
   To	Enter the bank account you want to transfer to.
   Date	Enter the date of the transfer.
   Reference	Automatically displays TRANS. If required, you can amend this.
   Ex Ref	Enter an extra reference if required.
   Details or Description	Automatically displays Bank Transfer. If required, you can amend this.
   Department	Enter the department.
   Payment Amount	Enter the payment value of the transfer.  This value is the same currency as the bank account the transfer is from.
   Receipt Amount	Automatically displays the same figure as the payment value. You can't change this.
   Exchange Rate	Automatically displays as 1.000000. You can't change this. You can enter an exchange rate with up to 6 decimal places.

3. Click Save then click Close.

Foreign currency to a different foreign currency bank transfer

 NOTE: For the revaluation journals to post on the same date as the bank transfer you must change the software date. To do this click Settings then click Change Program Date.

1. Go to Bank accounts and select the bank account you want to transfer from.
2. Select Bank transfer and complete the Bank Transfer window as follows:

   From	Enter the bank account you want to transfer from.
   To	Enter the bank account you want to transfer to.
   Date	Enter the date of the transfer.
   Reference	Automatically displays TRANS. If required, you can amend this.
   Details or Description	Automatically displays Bank Transfer. If required, you can amend this.
   Department	Enter the department.
   Payment Amount	Enter the payment value of the transfer.  This value is the same currency as the bank account the transfer is from.
   Receipt Amount	Enter the receipt value of the transfer.  This value is the same currency as the bank account the transfer is to.
   Exchange Rate	This automatically calculates. It divides the receipt value by the payment value to calculate the exchange rate.  The exchange rate is the foreign to foreign rate. If you amend the exchange rate this changes the payment value.

3. Click Save and click Close.

Automatically reverse a foreign currency bank transfer

1. Go to Nominal codes, select Journal reversal, and click OK. 
2. In the Date box enter the date of the bank transfer then click OK. 

   If you receive the Warning message 'Please note: one or more foreign bank revaluation journals have been excluded from the reversal list.' Please refer to the section How to manually reverse a foreign bank transfer.

3. Select the bank transfer journals you want to reverse then click Reverse. 

   To reverse the journals the balance must be 0.00.

4. Click Save.

Manually reverse a foreign currency bank transfer

1. Go to Bank accounts then select the bank account you want to transfer from.
2. Select Bank transfer and complete the Bank Transfer window as follows:

   From	Enter the bank account you want to transfer money from.
   To	Enter the bank account you want to transfer money to.
   Date	Enter the date of the transfer.
   Reference	Automatically displays TRANS. If required, you can amend this.
   Ex Ref	Enter an extra reference if required.
   Details or Description	Automatically displays Bank Transfer. If required, you can amend this.
   Department	Enter the department.
   Payment Amount	Enter the payment value of the transfer.  This value is in the currency of the account the money is leaving.
   Receipt Amount	Enter the receipt value of the transfer.  This value is in the currency of the account the money is going to.
   Exchange Rate	Enter the exchange rate for the transfer. You can enter an exchange rate with up to 6 decimal places.  The comment after the Exchange Rate box indicates how the rate is used. For example, if you enter an exchange rate of 1.3 and you're transferring from Euros to US Dollars the comment would be One Euro is worth 1.3 US Dollars.

If you amend the Exchange Rate box and the currency Update method is set to Always prompt to save exchange rate changes, you can update your currencies list with the rate from this transaction. To update the currencies list with the rate from this transaction > Yes or if you don't want to update the currencies list > No. 

• If you amend the Exchange Rate box and the currency Update method is set to Automatically save exchange rate changes, the new exchange rate saves to the currencies list
• If you amend the Exchange Rate box and the currency Update method is set to Never save exchange rate changes, this doesn't affect the currencies list

3. Click Save then click Close.

Reverse a bank transfer between two foreign currency bank accounts, if the original transfer includes a revaluation

The below example is based on a company with a Sterling base currency.

1. Go to Transactions then locate the bank transfer journals and revaluation journals and write down the transaction values. For example, a bank transfer from a Euro bank account (1200) for €1000.00 to a Dollar bank account (1210) for $1500.00 produces the following transactions:

   Type	Nominal	Details	Date	Ref	Net	Tax	T/C
   JC	1200	Bank Transfer	15/04/21	TRANS	937.50	0.00	T9
   JD	1210	Bank Transfer	15/04/21	TRANS	937.50	0.00	T9
   JC	7906	Foreign Bank Transfer Revaluation Journal from (number)	17/04/21	REVAL	168.27	0.00	T9
   JD	1200	Foreign Bank Transfer Revaluation Journal from (number)	17/04/21	REVAL	168.27	0.00	T9

   The revaluations always post using the program date.

2. Calculate the value of the transaction in sterling by deducting the revaluation value from the bank transfer value. For example, using the values above 937.50 - 168.27 = 769.23 therefore this is the original sterling value.
3. Calculate the exchange rate required for each currency.
   • For the bank account which hasn't had a revaluation posted, the exchange rate can be found in Transactions > Edit. For example, using the transactions above the bank transfer transaction for nominal code 1210 hasn't had a revaluation posted. In corrections the exchange rate shows 1.600000, this is the Dollar exchange rate
   • For the bank account which has had the revaluation posted, divide the foreign gross value by the value you calculated in step 2. For example, using the transactions above, the foreign gross value is 1000.00 and the value in step 2 is 769.23, therefore the exchange rate is 1.300001, this is the Euro exchange rate
     
     

     The foreign gross value can be found in the transactions module.

4. Enter the exchange rates in the currency list. Settings > Currencies > select the required currencies > note down the existing exchange rate then enter the exchange rates calculated in step 3 > Close. For example, using the values from step 3 the Dollar exchange rate would be 1.600000 and the Euro exchange rate would be 1.300001.
5. Change the program date to the date of the original revaluation. Settings > Change Program Date > Yes to close any open windows > enter the date of the revaluations > OK. For example, using the above transactions the date would be 17/04/21.
6. Post the opposite bank transfer. Bank accounts > Bank transfer > enter the relevant details.

   From or Account from	This is the bank account the original bank transfer was posted to.
   To or Account to	This is the bank account the original bank transfer was posted from.
   Payment Amount	This is the foreign gross value and should match the original bank transfer value for the bank account the original bank transfer was posted to.
   Receipt Amount	This is the foreign gross value and should match the original bank transfer value for the bank account the original bank transfer was posted from.
   Date	This is the bank transfer date and should match the original bank transfer date.

    

    Example u

   sing the transactions above:

   From or Account from	1210 Dollar Account
   To or Account to	1200 Euro Account
   Payment Amount USD $	1500.00
   Receipt Amount EUR €	1000.00
   Date	15/04/21

7. Click Save then click Close.
8. Change the program date to the current date. 

   Click Settings then click Change Program Date and enter the current date and click OK.

9. Change the exchange rates back to the original rates. 

   Click Settings then click Currencies and select the relevant currencies and enter the exchange rates which were entered before you changed them then click Close.