- Original Poster
- #1
Hi,
I have purchased additional Google Drive storage which is priced in USD however the invoice which they have given me is priced in both USD and GBP. The amount taken from my bank account does not match the converted amount on the invoice.
What we have is and invoice dated 30 Sept 2016:
Inv USD Inv GBP
Storage $1.99 £1.54
VAT $0.40 £0.31
Total $2.39 £1.85
The bank payment, on 1 Sept 2016, instead was for £2.63 which included 80p of bank fees so that meant the amount paid was £1.83 so difference of 2p. I know great sums however I know VAT needs to right.
Normally quite simple for a foreign currency invoice. Take rate on date of invoice and work out sterling amount. Take amount taken on payment date (less fees). Any variance raised against exchange variance. Job done. However now that Google have kindly done the conversion on the payment date but that doesn't match the conversion rate the bank used. If I process it with Google rates as that what they are saying they paid the VAT as then I end up with 2p out for the payment and likewise if I go the other way then it doesn't match the invoice.
The only way I can see of dealing with this is to raise a sterling invoice on Sage for the amount on the invoice in sterling (forget the foreign currency element). Raise a batch credit note for 2p (T9 as don't want to affect the VAT) against Supplier to the exchange variances nominal. Process payment matching credit note and invoice to leave a balance equal to the payment amount. This is unusual in that I'm raise an exchange variance when invoice is being treated as a sterling invoice and the payment is in sterling however given it is in both GBP and USD I think it's the only way to handle it.
Is this the right way to process?
I have purchased additional Google Drive storage which is priced in USD however the invoice which they have given me is priced in both USD and GBP. The amount taken from my bank account does not match the converted amount on the invoice.
What we have is and invoice dated 30 Sept 2016:
Inv USD Inv GBP
Storage $1.99 £1.54
VAT $0.40 £0.31
Total $2.39 £1.85
The bank payment, on 1 Sept 2016, instead was for £2.63 which included 80p of bank fees so that meant the amount paid was £1.83 so difference of 2p. I know great sums however I know VAT needs to right.
Normally quite simple for a foreign currency invoice. Take rate on date of invoice and work out sterling amount. Take amount taken on payment date (less fees). Any variance raised against exchange variance. Job done. However now that Google have kindly done the conversion on the payment date but that doesn't match the conversion rate the bank used. If I process it with Google rates as that what they are saying they paid the VAT as then I end up with 2p out for the payment and likewise if I go the other way then it doesn't match the invoice.
The only way I can see of dealing with this is to raise a sterling invoice on Sage for the amount on the invoice in sterling (forget the foreign currency element). Raise a batch credit note for 2p (T9 as don't want to affect the VAT) against Supplier to the exchange variances nominal. Process payment matching credit note and invoice to leave a balance equal to the payment amount. This is unusual in that I'm raise an exchange variance when invoice is being treated as a sterling invoice and the payment is in sterling however given it is in both GBP and USD I think it's the only way to handle it.
Is this the right way to process?
