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Pay Bills: Extra fields for foreign exchange skimmings

Trusted Cover User




165 Posts
Trusted Cover User

I use AccountEdge Pro 13 (Release 17.4.0L)


I buy stuff from Europe and pay for it in various ways.  All of them involve the payment channel either scraping money of the transaction when it goes past (so the vendor gets an amount less than I sent) or adding money to the total in the local or foreign currency, so I am billed more than I expect.


Example 1: I pay a vendor in Europe using Amex.

Amex adds 3% to the total sent as commission.  The statement shows a single amount in AUD, with a remark "AUD 1000.00 includes conversion commission of AUD 30.00"

In this case, there are three numbers of interest:

  1. the invoiced amount in EUR;
  2. the commission amount in AUD;
  3. the total deducted from my bank account in AUD.

The exchange rate is not explicitly stated - it must be derived.


Example 2: I pay a vendor in Europe by bank transfer.

The money-in-transit experiences friction losses, so that the amount received is significantly less than the amount I sent.  This amount cannot be determined in advance, so I must send more than the vendor expects, which hopefully leaves me with a credit.  

This transaction has four numbers of interest

  1. the invoiced amount in EUR;
  2. the amount sent in AUD or EUR;
  3. the amount pillaged-in-transit - derived in currency of choice;
  4. the credit amount after the invoice is paid - in EUR.

In this case, the exchange rate is quoted by the bank, so it is known.


MYOB's multi-currency support is quite rudimentary.  POs are created in the vendor's currency.  Freight is entered in the vendor's currency, and the bill payment is recorded in the vendor's currency.  The bank reconciliation is done in the local currency.  The PO and the payment dialogs allow entry only in the vendor's currency.


My current solution is ugly:

  1. I calculate the commission in EUR
  2. I add an item to the PO called FX-COMMISSION that applies to an expense account for FX fees.
  3. I calculate the total billed by AMEX in EUR
  4. I post this as the payment amount.

In other words, the bank charges appear to be billed by the vendor, and the amount I record as the payment does not match the amount recorded as the payment by the vendor.  This inevitably causes multi-lingual frustration if there is any follow-up conversation about the invoice.  Which there inevitably is.


I would like to propose a simple extension to the Pay Bills dialog:

  • A "Fees billed in <foriegn currency>" field (in my case, this would display as "Fees billed in EUR") initialized to EUR0.00.
  • A "Fees billed in <local currency>" field (in my case, this would display as "Fees billed in "AUD") initialized to AUD0.00
  • Each of them has an adjacent account selector that allows us to choose the appropriate expense account.
  • The Total Paid  and Out Of Balance amounts are displayed in both currencies to simplify problem-solving.

To complete the payment for example 1 above, I record the invoiced amount in the header block, tab through to the Fees billed in AUD field, enter the Amex commission and the total is presented in AUD and EUR.  In my case, I compare the total in AUD to the Amex statement amount to confirm that it all balances.


To complete the payment for example 2, I need to deternine the credit amount at the vendor, calculate the transmission losses, then put them into the appropriate "Fees" field.  More math is required, but at least I am avoiding the dreaded FX-COMMISSIONS item on the PO, and the documented amounts in my system agree with the vendor's.