Payment of a Foreign Currency Invoice with a different foreign currency

KathrynF1

Our organisation works with the following currencies - AUD, EUR, GBP, SGD, USD

 

How would I correctly enter the following payment into MYOB:

 

Payment of EUR Invoice from USD bank account:

 

Example = Paid EUR3,300 invoice from the USD bank Account (Debit amount USD3,549.08)

                  FX rate: 1.07548

                  Date: 10 Feb 2023

 

 

We have a currency transfer holding account set up.

 

Thank you.

Mike_James

Hi @KathrynF1 

 

1. Pay Bills, select clearing account (AUD), pay EUR 3000 bill at 1.64 (any realistic rate will do), = AUD$4920. You could also choose the rate as AUD value of bill divided by 3000; this will avoid a spurious exchange varaince on the payment, and will change the maths in part 2).

 

2. Spend Money, select USD Bank, amount USD 3549.08 at rate 1.386274 (4920/3549.08) = AUD$4920.

Allocate to the F/C clearing account used in (1).

 

If you can't get the AUD amount in (2) to match exactly, put through another Spend (AUD$<$4920)/Receive (AUD$>$4920) money on the clearing account for the difference of a cent or two.