Non Euro Imports

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT member discussion
Hi - a new area for me this one so a little advice would be welcomed and probably back to basics for many ! :oops:

Payments to foreign suppliers are being made via a business to business payments services company - this process is currently handled in house so the first that I see of it is a summary of the payment made and the GBP actually paid.

It would be too easy to work on that at face value - I must surely have to account for any fluctuations in exchange rates ?

Many thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Non Euro Imports

    I've seen this done in two different ways, both approved by the clients accountant -
    1) The value of the transaction is recorded in the books as per the actual GBP value paid
    2) The transaction is recorded according to exchange rates on the date of the transaction, then when the GBP value is know there is an adjustment to a F/Exch gain or loss account.

    Is there any indication which method has been used in the past? If so, try to be consistent with that method.

    Either way, bank charges for F/exch payments should be recorded separately.

    Sheelagh
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Non Euro Imports

    Thanks Sheelagh

    The customer is in the middle of changing accountant - it is something I can take up with them once things have settled down - you have reassured me that I am not doing something silly by just posting the GBP - many thanks.

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