NZ Payment of an AU Invoice.

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We use Reckon Premier Edition 2017/2018.

We have raised an invoice in $AU for a NZ based client who normally remits via their AU operations. 

This time they have remitted from NZ directly to our NZ bank account in adjusted $NZ.  The debt is recorded against Account Receivable AU. 

How do we record this payment registering that the payment was made in $NZ to an NZ bank account?
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Gerard Munro

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Posted 4 months ago

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Kevin Whiting

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If your event is a one-off, I would receive the full amount against the Invoice and record the numerical difference as Fx expense.   

We conduct some business in USD from a US account, so we calculate the foreign exchange (Fx) variance for every foreign transaction and park it in an account called "Unrealised Fx gains/losses".  When the money is spent from the foreign account, or converted to AUD (and returned to Australian bank account) we then journal an adjustment for the "realised" value, using the exchange rate at the time.  This process also allows us to estimate any AUD gains or losses due to holding foreign currency.  We do all this in a spreadsheet using daily Fx rates from the Reserve Bank, available as a spreadsheet containing many foreign currency rates.

Hope this helps.

Kevin