Cashbook Receipt - Foreign Debtor

If you trade in multicurrency and have foreign debtors, these debtors will likely pay in the respective foreign currency.

Using multicurrency will typically imply that you may have debtors that are invoiced in the USD as an example

As such the debtor, when making payment will pay their account in USD. This receipt can be entered into a Foreign currency bank account or a ZAR bank account.

Receipts into a ZAR bank account:  

Create a cashbook as normal for the local (ZAR) bank account the money was paid into

When entering the receipt, select the respective debtor

you will note the currency indicated will display USD

Enter the USD amount paid

Click Next

Enter the applicable exchange rate

note: The Rand equivalent value is populated

Proceed with the cashbook as normal

Save and Close

Process the cashbook

Allocation of the receipt

Allocation of receipts from foreign debtors must be done in both the foreign currency as well as Rand

go to: Activity>Allocation

search the debtor as normal

Change the currency

Click search

note the values will be displayed in the foreign currency

The Invoice and receipt values will typically match. and you can allocate as normal

Change the currency to Rand and search

Note: the values may differ because the invoice would have been done at a different exchange rate to the receipt

You can allocate these entries and you will note an exchange gain / loss difference remaining on the allocations

This amount will need to be cleared with a Rand debtors journal on the debtor account

refer to Debtors gain / loss journal manual to create the journal

Debtors Gain / Loss journal