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Mapleloor's avatar
Mapleloor
Experienced Cover User
3 years ago
Solved

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...
  • The_Doc's avatar
    The_Doc
    3 years ago

    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

     

     

     

The_Doc's avatar
The_Doc
Ultimate Cover User
3 years ago

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

 

 

 

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