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Former Member

Payment in Foreign Currency

Hi,

We have an issue with the Journal Entries for foreign currency invoices and payment.

We are an Australian company and our local currency and system currency is AUD. One of our vendor issues invoices in USD. Below are the following steps in which we process the FC invoices and payments:

1. To book AP invoices with foreign currency. (See attachment #1)

2. Oragniaze outgoing payment (in AUD) Against the AP invoice (See attachment #2)

I also attached the JEs for both two steps above (Attachment #2 and #3). You can see from the JEs. There will be a credit balance of USD $ 1,100 remained in the book for the Bank account (1565005) , and debit balance of USD $ 100 for GST Collected (200605) and USD $ 1000 for Importation Freight Expense - Sea Freight (648005) as well.

How can we get those three FC balances back to 0? Or do we need to do it?

Thanks

Ross Zhu
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