Transferring from an Australian bank account to a NZ account

MM_7769277

What would be the best way to record a transfer of AUD3,000.00 to our New Zealand bank account?

We are using multi-currency Reckon hosted.

I was thinking maybe raise an invoice in NZD and then use the exchange rate to calculate the correct amount received?

Thanks in advance!

MM

Shayne McNamara

We have a similar situation and have done it either one of 2 ways.  If either the NZ "company" or the Australian "company" is actually a branch of the other then the easiest is just to transfer via a journal through the loan account out of one loan account into the other.  Then it is a balance sheet movement and doesn't impact on your Profit and Loss.  For instance our Australian "company" in Reckon is a branch of our NZ one and although we prepare separate Aussie accounts they end up getting combined for the NZ year end accounts.

The other way of doing it which we used to do but is messier is to raise an invoice for management fees and then pay these but then you have to deal with exchange gain/loss if not paid at the time the invoice is raised.

Hope this helps.

MM_7769277

Thanks Shayne. Both bank accounts belong to the same company - I just need to pay a NZD invoice and there's not enough in the account so I needed to transfer some cash from our AUS account.

I was thinking to go with your second option to cater for the FX (we are on multi-currency) but I can't figure out which account to use?!