Foreign Currency Current Asset Account?

JenIdosaka
JenIdosaka Member Posts: 6

Reckon Help tells me in order to prepay for inventory I have ordered, I should set up a Current Asset Account to pay into until the stock arrives. I am paying in Japanese yen, BUT it doesn't seem to allow a Current Asset account to be set up in a foreign currency. Only bank accounts, A/R and A/P accounts. How do I enter a prepayment for stock purchased in a foreign currency?

Best Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Answer ✓

    Do you have Multi-currency enabled in your company file Preferences ?

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 2022 Answer ✓

    I would post the prepayment via a Write Chq to your Japanese Supplier - to your Japanese Yen A/P account (NO tax code) - then when you receive the bill, enter it & apply the credit.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)

Answers

  • JenIdosaka
    JenIdosaka Member Posts: 6

    Yes, multicurrency set up, foreign currency bank accounts set up. I've entered the purchase orders with foreign currency prices on items. Now I want to pay for the purchase order before stock is delivered. The instructions for that say "set up a current asset account called "prepaid inventory". BUT when I tried that it doesn't have the option to choose a currency for the account. I looked up setting up accounts and it said only bank accounts and A/R and A/P accounts can be foreign currency accounts. So... is there a way to set up a foreign currency current asset account, or should I use a different account to prepay in a foreign currency?

  • JenIdosaka
    JenIdosaka Member Posts: 6

    Thanks Shaz, That makes sense. Thanks for your help!