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.

Go to the Sales command centre and click Receive Payments. The Receive Payments window appears.

Type or select the customer in the Customer field. Details of Donelli Paper’s purchase appears in the window.

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

Click Rate. The Exchange Rate window opens.

Click OK. The Receive Payments window reappears.

In the Amount Received field, type 200.

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.

Click Record.