International transactions > Miscellaneous transactions > Entering foreign-currency transactions in a local account
Entering foreign-currency transactions in a local account
You can enter foreign-currency transactions in a local-currency account. For example, you can accept a cheque from a customer in pounds and bank it in an Australian bank account.
Example
You have received a cheque from your customer, Donelli Paper, for £5000 against an outstanding invoice, and you want to bank it in your local-currency account. Let’s also assume the exchange rate has changed from $2.5 to $2.3 since you made the original sale.
To bank Donelli Paper’s cheque, you would do the following:
1
Go to the Sales command centre and click Receive Payments. The Receive Payments window appears.
2
Type or select the customer in the Customer field. Details of Donelli’s purchase appear in the window.
3
In the Deposit to Account field, type or select your local-currency account.
4
Click Rate:GBP. The Exchange Rate window appears.
5
In the Transaction Exchange Rate field change the rate from $2.5 to $2.3.
6
Click OK. The Receive Payments window reappears.
7
In the Amount Received field, type 5000.
8
Click in the Amount Applied column and then press Tab.
The Out of Balance field displays £0.00. The Gain/Loss field shows the a loss (in local currency) as a result of the new exchange rate. This amount is posted to a currency gain/loss account.
9
Click Record.
Related Topics
■
Exchange rates

More help options

Top of page