Reconcile Customer Receipt with no bank charges
The scenario is:
- You raise a Sales Invoice for $672 in Jan when the exchange rate is 1.20
- You receive payment in full in Feb when the exchange rate is 1.3.
From the Bank Rec you see the money has come in:
Invoice Payment
Navigate to ‘Sales – SALES INVOICES’ sub tab and find the invoice that relates to this receipt and choose [Pay] from the drop-down menu:
This opens the Payment pane:
- Payment Date: the date of the Bank Rec transaction
- Reference: something to help with matching – eg: the Description’ from the Bank Rec transaction
- The Exchange Rate will automatically choose the rate for the Payment Date
- Bank Account must be your foreign currency account
- Receipt Type can be whatever you choose (but not a Cash type)
- Leave ‘Payment Adjustment blank
- Amount will be the amount of the invoice
Click [Pay] and if you refresh the List View you will see that the invoice has been full paid. If it has not reduced the Outstanding amount, navigate to ‘Sales – CUSTOMER RECEIPTS’ and check the journal has been posted.
The Postings
If you inspect the posting generated for the Invoice you can see the necessary currency adjustments have been posted, along with the Bank Account & Control Account:
Bank Reconciliation
Now we can go back to the Bank Reconciliation page:
Click on [Match] for the appropriate transaction line:
- Select Journal type: ‘Customer Receipt’
- This will display all Unreconciled Customer Receipts
(You can search for the Invoice Number in the ‘Filter by other words’ field)
- Tick on the journal that you just entered and check it matches the ‘Remaining Balance’
Note that the ‘Remaining Balance’ is now zero so you can click [Save] to complete the reconciliation.
Reconcile Customer Receipt WITH bank charges
The scenario is:
- You raise a Sales Invoice for $700 in Jan when the exchange rate is 1.20
- You receive payment in Feb when the exchange rate is 1.3 but you only receive $672 with $28 being foreign currency transaction charges.
From the Bank Rec you see the money has come in:
Invoice Payment
Navigate to ‘Sales – SALES INVOICES’ sub tab and find the invoice that relates to this receipt and choose [Pay] from the drop-down menu:
This opens the Payment pane:
- Payment Date: the date of the Bank Rec transaction
- Reference: something to help with matching – eg: the Description’ from the Bank Rec transaction
- The Exchange Rate will automatically choose the rate for the Payment Date
- Bank Account must be your foreign currency account
- Receipt Type can be whatever you choose (but not a Cash type)
- Payment Adjustment Type: MUST BE set to ‘Bank Charges’
This posts the balance of the invoice as Bank Charges - MOST IMPORTANTLY the Amount must be be amount in the Bank Rec transaction
Click [Pay] and if you refresh the List View you will see that the invoice has been fully paid. If it has not reduced the Outstanding amount, navigate to ‘Sales – CUSTOMER RECEIPTS’ and check the journal has been posted.
The Postings
If you inspect the posting generated for the Invoice you can see the necessary currency adjustments have been posted, along with the Bank Account, Bank Charges & Control Account:
Bank Reconciliation
Now we can go back to the Bank Reconciliation page:
Click on [Match] for the appropriate transaction line:
- Select Journal type: ‘Customer Receipt’
- This will display the two Journals you created earlier
- Tick on the journal that was the main payment and matches the ‘Remaining Balance’
Note that the ‘Remaining Balance’ is now zero so you can click [Save] to complete the reconciliation.