Partner Zone

Write off Bad Debts (original invoices in foreign currencies)

UnhappyUser7892
1 Post
User

1Posts

0Kudos

0Solutions

Solved: Go to Solution

Write off Bad Debts (original invoices in foreign currencies)

I need to write off some historical invoices recorded in one of my client's MYOB AccountRight online file, which were originally issued in foreign currency (USD) & converted to Aust dollars (AUD) at historical foreign exchange rates at dates of invoices being issued. So how should I record the "Bad Debts" via Settle Return & Credits as a negative sale via the Sales Register menu? Do I need to create the matching invoices in negative equivalent amounts in USD or AUD? As there will be foreign currency exchange rates differences - date of bad debts recorded (different from original invoice), do I also need to create a new Expense Account - Realised foreign exchange losses?

1 REPLY 1
SamaraM
MYOB Moderator
1,030 Posts
MYOB Moderator
MYOB Moderator

1,030Posts

47Kudos

147Solutions

Accepted Solution Solved

Re: Write off Bad Debts (original invoices in foreign currencies)

Hi @UnhappyUser7892 

 

Writing off bad debts are usually done by reversing of the original sale, and allocating the transaction to a bad debts expense account. As there is the addition of being a foreign currency transaction, you will need to deal with the difference due to the exchange rate, which you would usually put against a gains/loss account.

 

We recommend checking with a financial advisor on how best to record this transaction in your specific situation, but when you are ready to record it, these Help Articles have detailed information and instructions:

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

 

Regards,
Samara

MYOB Community Support

Online Help| Forum Search| my.MYOB| Download Page

Didn't find your answer here?

Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post