Invoicing and payment from New Zealand customer
What is the best way to deal with invoicing a New Zealand customer and them paying? I am using Account Right 2022.9.0. Do I invoice them in NZD at the current exchange rate or AUD? If they pay via visa with the online system do I invoice them in NZD at current bank exchange rate? We have never sold anything overseas before. I believe we don't charge GST either?
Hi Mapleloor
We deal with this problem all the time though I don't run multi-currency - but in the past did.
We constantly get invoices from overseas suppliers - in their currency - and we have to pay in their currency - or we get it in $A and pay in $A or we get it in $US from somewhere and GST may be applied or not. That can be confusing but many overseas companies register with an Aussie ABN so they charge GST - confusing.
The answer is keep it simple for yourself.
Create the invoice in $A with a GST code of EXP - depending on what you are selling - the laws have changed - but if I invoice someone in NZ for Software development it is in $A and a GST code EXP.
This keeps it all simple.
And leave it to them to worry about the exchange rate - they got to pay you in $A - so that is their problem.
Whhen the money comes in so long as it is in $A you just marry the payment to the invoice without the worry of Gains/Losses.
If you lose a little or gain a little - just send it to interest/bank fees.
Simple.
The Doc
