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 euros and bank it in a Sterling bank account.

Example

You have received a cheque from your customer, Donelli Paper, for €200 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 0.60 to 0.63 since you made the original sale.

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 Paper’s purchase appears in the window.

3	In the Account field, type or select your local-currency account.

4	Click Rate. The Exchange Rate window opens.

5	Click OK. The Receive Payments window reappears.

6	In the Amount Received field, type 200.

7	Click in the Amount Applied column and then press Tab.

The Out of Balance field displays EUR0.00. The Gain/Loss field shows the a gain or loss (in local currency) as a result of the new exchange rate. This amount is posted to a currency gain/loss account.

8	Click Record.