New bank account balance and historical balance
Hi there, I can't find an actual Board for my question so I have chosen 'Idea Exchange' for want of a better choice. Here is an interesting one. I recently added a new bank account (Asset) and added an opening balance. This was opened in August 2019. No dates were entered because there isn't anywhere to add a date when entering an opening balance in the accounts section of AccountRight. When I had my accountant check it it showed up as a historical balance and as being entered in 2018 instead of August 2019 when the account was actually opened. It has both the accountant and me stumped as to how it happened. Fortunately the balance sheet for eoy figures for 2019 is correct after the accountant did her magic but the Balance Sheet figures for 2018 are not correct. Any idea what could have happened? I had also opened a Loan account (Liability) at the same time and I wondered if I had done something wrong with that that caused the problem but both Accountant and I have checked and can't see that anything I've done could have caused the issue. It's the bank account that is showing the historical balance not the loan account. As I mentioned the 2019 figures seem to be ok so we are just going to ignore it and move on but I would love to know if you have an explanation for it. Thank you in advance for your answer.
Hi Nicccc
While you can record direct payments (Receive Payments & Receive Money) into a foreign bank account, the Prepare Bank Deposit window doesn't have the ability to make payment into that foreign bank account.Ideally, you would be processing the transaction directly to that foreign bank account which would eliminate the need for that Prepare Bank Deposit.
However, if that is not possible, what I would be doing would be recording a Recieve Money transaction to that foreign currency account as the Deposit to with the allocation being that undeposited funds account (see screenshot). This would generate a negative in the Prepare Bank Deposit transaction in the local currency. This can be ticked along with the other transaction to cancel each other out for processing: