Foreign Currency Current Asset Account?
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
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Do you have Multi-currency enabled in your company file Preferences ?
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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.
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Answers
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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?
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Thanks Shaz, That makes sense. Thanks for your help!
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