USD Supplier Part Payments - Curr Exchange Difference

Question

HiWe have an overseas supplier that invoices us in USDWe pay a deposit when we place the order and subsequently when the invoice is raised we make 2 more part payments on the InvoiceWhich means that there are 3 payments for each order at different exchange ratesOnce we record the first payment against the order, MYOB then does not allow us to update the exchange rate for the transaction.We end up with Realised Gain/Loss even though this is not necessarily trueIs there any way around this ?

doreen_p · Answer

Hi @Trithermal,
&nbsp;
I understand your concern about handling multiple payments at different exchange rates in MYOB. From the information I found, MYOB Business AccountRight Premier offers multi-currency support which could potentially help with your situation. It allows you to send quotes and invoices in over 150 currencies and provides multi-currency cashflow reporting to track your gains and losses. It also uses live exchange rates to help you make the best decisions for your bottom line.
&nbsp;
With your concern, you may try deleting or reversing the order and then recreating it to correct the situation. You may click here for more information.
&nbsp;
Feel free to post again anytime if you require further assistance.&nbsp;&nbsp;If my response has answered your inquiry, please click&nbsp;"Accept as Solution"&nbsp;to assist other users in finding this information.

andm · Answer

HiWe are already using AccountRight Premier 2024.2.0. Obviously this is the reason I am have a multi currency question.&nbsp;Once a payment has been applied to an order, it cannot be deletedAlso, as clearly indicated in my question, after the first payment, the supplier ships the goodsTherefore the 2nd and 3rd payments are on an Invoice - not on an orderOnce a payment has been applied, an order or invoice cannot be deletedIf I were to reverse the orders or invoices everytime I need to apply a payment, I would end up with a large volume of adjustments which will become a nuisance at EOFY.&nbsp;The solution offered by you is not feasible unfortunately or accurate

genreve_s · Answer

Hi @Trithermal,&nbsp;
&nbsp;
Thanks for the response. We appreciate you clarifying your concern.&nbsp;
&nbsp;
In my understanding, the multicurrency rates can be adjusted while recording the payments. This is provided by the app to make sure that the rates are correct for the period the payment was made.&nbsp;
&nbsp;
Additionally, you should have access to deleting and editing your payment transactions in the application. I recommend making sure these two preferences in the screenshot are not marked-checked to make sure that you don't have difficulties correcting the rate changes in the application.&nbsp;

I recommend reading through this article 'Working with Multiple Currencies'. This will provide you with a better understanding on how to record different rates for each payment.&nbsp;
&nbsp;
Let us know if you require any further assistance with this.
&nbsp;
Thanks,
Genreve
&nbsp;

andm · Answer

Hi GenrevePlease read my question carefully. We already have been working with multiple currencies for the past couple of years. Our issue is not with multi currency paymentAs mentioned earlier, we now make part payments to one supplierE.g. Purchase Order AA01 Total USD 100 dated 1/7/23Payment 1 - Deposit - 1/7/23 USD$50 @ 0.65Payment 2&nbsp; - Invoice Date - 1/9/23 USD $25 @ 0.64 - At this stage the order is converted to an InvoicePayment 3 - Arrival of Goods - 15/9/23 USD $25 @ 0.66Therefore the exchange rate of this transaction should be 0.649923However, once the first payment is applied to the order the exchange rate gets allocated to this purchase and all future payments created a Exchange Gain or Loss&nbsp;Yes, we can apply the exchange rate to the payment, however that exchange rate does not get applied to the purchase transaction&nbsp;Hope this makes things clearer.

mike_james · Answer

Hi&nbsp;ANDM&nbsp;, the design of this currency system is based on creating a transaction at one rate, and paying it at another, without returning to the original transaction and modifying the rate. When you say that the transaction exchange rate "should be"&nbsp; 0.6499, this suggests that you used to modify the purchase exchange rate before making the sole payment, hence no gain or loss; but with multiple payments that is not possible, as the first payment always locks the rate, it's just never been visible to you before.&nbsp;&nbsp;&nbsp;

Forum Discussion

USD Supplier Part Payments - Curr Exchange Difference

Looking for something else?

Related content

Record payment to supplier

double payment to supplier

Double payment to different bank accounts

SUPPLIER PAYMENT TERMS

Supplier card balance difference between open purchases

Email Remittances All Suppliers

Record Supplier Payment

Record Supplier Payment