How to enter loss or income from currency exchange


Hi there,

I have an invoice of €6500 and received €6400 in £, difference is as unpaid invoice, what is nor right. How to How to record this as loss from exchange when posting journal to this account is forbidden?



You need to furnish more information. How was the conversion made from Pounds to Euros? Since the invoice was in Euros and the receipt was in Pounds, the customer apparently underpaid. You either need to write off the difference or have the customer pay what is actually due.


It was not made in any way, it was just exchange rate entered in “Exchange Rates” tab.

It has paid the right amount in EUR, but due to changes in rate, amount that was received in GBP was not the same as it is on invoice due to rate used by bank (in most cases).

Yes, I need to write of this. My usual way of solving is journal:
CR Receivables | Customer X,-
DR Currency loss/gain X,-
What would be your suggestion do this in Manager?



You don’t need a Journal if your customer is set up as Euros.
The Customers Sales Invoice

When you do the receive money enter both the GBP received (6,300) and the Euros of the invoice (6,500

Manager will automatically calculate the currency exchange difference between the Sales Invoice and the Receive Money exchange rates

PS: the 6,300 is just a made up figure, and haven’t setup any exchange rates under Settings


@Brucanna answered your question before I could get back to you, @Solnce. The important thing when invoicing in a foreign currency is to have the customer set up that way. And you would not want to do that unless the customer will pay in the foreign currency.

Then Manager gives you options. One is to maintain a bank account in the foreign currency. This is handy if you have several customers who operate in that currency. That way, there are no exchange rates involved in the spend and receive transactions, only in the conversion to your base currency for balance sheet purposes. The other approach is the one @Brucanna showed. This is most convenient if foreign currency transactions are less frequent. This method also has the advantage that you don’t need a second bank account and there are no conversions for the balance sheet. And Manager automatically takes care of foreign exchange gains and losses based on the numbers you enter.


Everything works as I expected. Thanks guys.