You understand as per @Joe91’s suggestion above that you can modify the receipt instead of the invoice?
Hi Graham, Yes I did try @Joe91’s suggestion - but it meant that I had to enter the variation in USD which is not what I see in practice. I have updated my accounts using the modified invoice approach using the Foreign Exchange account I created at your suggestion, and things now balance (though I still have $250 sitting in the default Foreign Exchange Gains/Losses account - and do not know how that happened other than to guess it was due to a software change from earlier) - so I am not really happy with the outcome…
Never mind - I think we have gone over this too long now… I will just persevere with what I have.
Regards, Peter
Hie Pjy
You might need to consider using a journal entry to move the Foreign exchange Loss to the Profit and Loss Account and clear out the customer account:
I would suggest the following Journal entry:
DR Profit or Loss On Foreign exchange $124.08
CR Accounts Receivable - Specific Customer $124.08
This should clear your accounts receivable specific customer to zero and move the 124,00 to profit and loss as an expense to you.
Hope this is Helpful!
Hi Munya - thanks for the suggestion - perhaps I will try that 
I totally agree with you that it is reasonable, in your case the “WUBS virtual account” is acting just like any other “clearing account” accept that it’s listed under the Bank tab. In fact, you could classify the WUBS as a Cash Account so that it acts like a Petty Cash tin so as to avoid listing an actual bank account when you don’t.