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Sage 50 Pro - handling foreign currencies

Discussion in 'Accounts & Finance' started by AATnewbie, Jul 4, 2012.

  1. AATnewbie

    AATnewbie UKBF Newcomer Free Member

    Posts: 31 Likes: 1
    I have a pro forma invoice from a supplier which has to be paid. The issue I am facing is a lack of knowledge on my part as to how to process it within Sage 50 Professional.

    The supplier is in Taiwan, and has invoiced us in USD.

    Our bank account is a standard High Street account in UKP, from which we can pay the supplier online (subject to the normal handling charges).

    I have enabled the "Foreign Trader" module within Sage and set the supplier up with the base currency of USD. Raised the purchase order.

    However, when I attempt to "Pay Supplier", it tells me that the bank account is unable to do this as it is a foreign currency.

    Looking in the Sage help files indicates I need to setup different accounts to cope with the different currencies ? Does this mean I will need to manually do a bank transfer between say 1200 and the "new" USD account, which is actually my 1200 account but just for the USD transaction ....

    Help ... can someone explain to me in layman's term what it is I am meant to do !?!

    Many thanks in advance ....
    Posted: Jul 4, 2012 By: AATnewbie Member since: Feb 11, 2010
  2. johndon68

    johndon68 UKBF Big Shot Full Member - Verified Business

    Posts: 3,145 Likes: 587
    As you have found, you can only pay invoices from a bank account that is in the same currency. So you'd need to do the following:

    1. Set up a USD bank account
    2. Pay the invoice from that bank account
    3. Transfer the money from your 1200 account to the USD bank account to bring it's balance down to zero.

    Posted: Jul 5, 2012 By: johndon68 Member since: Nov 2, 2009
  3. goldenquest

    goldenquest UKBF Newcomer Free Member

    Posts: 48 Likes: 6
    We process lots of non GBP invoices... some of which are paid from our GBP account, others from our EUR and USD accounts.

    For payment of non GBP invoices from a GBP account, we make the payment and note the corresponding GBP amount on the invoice. This amount is the calculated in sage with the GBP account.

    For example:

    > Invoice: USD 5000

    > International transfer of $5000, meaning £3250 is taking from our GBP bank account.

    > £3250 is noted on the invoice as the corresponding GBP amount. That's the figure used for accounting against your GBP account in Sage.

    You don't need to go to hassle of using the foreign trader module. Just make sure you use the right tax code for the supplier account. It'll be T9 for Taiwan.

    You also have to do it in reverse order. So, where you would normally put the supplier invoice in Sage first and then pay it, you can't do this as you don't know the GBP amount until it's paid. Have the supplier account created in Sage, pay the actual invoice, then create a supplier invoice in Sage for the GBP amount and mark it as paid against your chosen bank account in Sage.
    Last edited: Jul 6, 2012
    Posted: Jul 6, 2012 By: goldenquest Member since: Jun 8, 2010
  4. AATnewbie

    AATnewbie UKBF Newcomer Free Member

    Posts: 31 Likes: 1
    Thank you for both of your replies .....
    Posted: Jul 8, 2012 By: AATnewbie Member since: Feb 11, 2010