How do I enter contra payments using two different currency's (customer=AUD, supplier = CAD)?

I need to enter a contra payment for a supplier whom bills us in Canadian Dollars and they are also a customer of ours and we charge them in Australian Dollars. I find the help notes most unhelpful especially at the NOTE section at the bottom.

Comments

John G

Hi Angela,

Welcome to the Reckon Community.

You should set up a bank account called something like Supplier Contra Clearing Account.

Pay your Canadian bill with this bank account and receive payment from your Canadian customer to this account. Then transfer any balance (the difference you pay or receive) to your normal account so that this account always returns to zero.

Hope this helps.

regards,
John

Jane_6883921

Hi John, I am trying to do something similar, as in we have a customer that is a supplier as well, and I want to just pay him the difference, if I do a receive payment and then pay the bill out of the contra account , it leave the difference, if I then transfer that amount over from the normal business account to make the contra account zero, thats fine BUT then if I write a cheque to the supplier for the amount I still owe he will cash the cheque and there will be 2 amounts entered as coming out of the normal business account (the actual amount paid and the same amount entered to come into the contra account) ?????

John G

Hi Jane,

Welcome to the Reckon community.

It should work.

Receive Payment for invoice to your Contra Bank Account - for the exercise, say $1000.
Pay the bill from the Contra Bank Account - for say $1500.
Transfer from Real Bank Account to Contra Bank Account the balance - $500. Contra Bank Account is now 0.00 and Real Bank Account is $500 less
Physically write the cheque/Internal payment/ etc for the amount of the transfer. Note the cheque number in the memo field of the Transfer.

Hope this clarifies the process.

regards,
John

Jane_6883921

I have completed the first 2 steps no worries, the contra account is now - $500, but when I go into transfer funds and try and enter -$500it will not let me do a negative amount from Main bank account to the contra account ????

John G

Hi Jane,

The last step is to bring your Contra Bank Account to zero (0.00) so that your real Bank Account shows an outflow of $500.

Hope this helps.

regards,
John