Hi all.
Is there a way to add foreign currency payment from bank account for small amounts?
ex. 80 USD payment from EUR account. I post amount debited from bank account 78 EUR and amount which was credit to recepient - 80 USD.
If I’ll create supplier and add invoice in foreign currency - it works in the right way. But question is for small payments, where I don’t need to register service provider as a new supplier.
I don’t understand your question. You always pay the amount to a company or a person, don’t you? And your bank always shows the exchange rate and further costs so you can record the operation in your local currency indicated by your bank.
When making payments for cash purchases, there is no option to use foreign currencies.
You are not making a payment to a recipient - you are making a payment from a cash/bank account (credit) and the debit is normally to an expense account
All payments are made in the currency of the cash or bank account from which the payment is made.
Yes, it’s correct. My example need to be more complicated. Base currency - USD, Bank account currency - EUR, Amount paid from EUR acc is in AED. From time to time I need reconciliation in AED. For this purpose I have just two options - registering this as recipient (employee/supplier) and set currency as AED or add custom field to payment and than summarise it in excel.
@vdebrist, you are describing financial impossibilities. A bank account denominated in one currency can only have deposits and withdrawals in that currency. Your bank may perform conversions for you (usually for a fee) in a series of transactions, but it cannot pay in AED from a Euro account.
Of course it’s conversion, but how it affects a fact, that I have no AED account and I need to reconcile with recepient about amount were received from his side? Amount in EUR which was debited after conversetion is useless for this as well as USD amount in P&L statement. Thats why I need to store both figures: EUR for account statement and AED for reconciliation.
Setup your supplier using AED as the currency, enter his invoices (I presume he invoices you) and then you will have a full set of data for reconciliation purposes