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