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Multi currency Book keeping with UK VAT etc.,

Multi currency Book keeping with UK VAT etc.,

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Am struggling with Book keeping for one our client who trades in Gems and Diamonds. 

They raise hand typed invoice to their customers normally in US$ for the Net amount and VAT element in Eqvl. GBP. Example: USD 1000.00 NET and VAT $200 = £160 using rate 1.25

They receive payments sometimes togather NET + VAT in US$ or sometimes NET in US$ and VAT in GBP separately. Or sometimes NET and VAT  both in GBP but in different occasion.

In most cloud accounting softwares sales invoice can only be created in one currency and VAT in the same currency and posted in sales ledger accordingly. When allocating receipts NET element in US$ and VAT element in GBP is not being accepted by any software since invoice was created in either one of the currency.

Upon my exploration of diffrent cloud based software like Quickbooks, Sage, Xero only Quickfile has some answer but cant see the transaction history of one particular customer/ supplier in one screen, They still working on the filtering  and reporting.

VT transaction+ does the work but not cloud based and have no plan to go cloud based at  all.

Could someone advice me on powerful Multi-currency software which addresses this issue please.

Would very much appreciate it.

 

 

 

 

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By GW
15th Mar 2017 09:46

I'm still looking, VT Transaction+ is the only system I've found that can cope with even slightly complicated currency isssues.

If VT is the only system that does what you want, do you actually need a cloud based system?

Yet another concern about MTD - forcing businesses to use software that can't cope with the way they operate!

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to GW
15th Mar 2017 23:13

Thanks GW. Feel relieved that am not the only one.
Directors want to access the debtors and creditors from their laptop. That's why am looking for cloud based..

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to Abidali Ibrahim
15th Mar 2017 23:22

by the way what you mean by MTD?

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By GW
to Abidali Ibrahim
16th Mar 2017 11:49

Making Tax Digital

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15th Mar 2017 10:26

I also use VT Transaction+ for the same issue

It may not bee on the cloud - but I get around that by saving the data file in dropbox - so it is available to me from two or more locations. It still doesn't get around the limitation of a single user system though :-(

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to BigBadWolf
15th Mar 2017 23:17

Thanks guys.
I give a try using drop whether it answers my quest.

Many thanks

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16th Mar 2017 09:19

We deal in multi currencies and have the same problem at times. For example, if you have a Euro sales transaction the receipt can only be processed through the Euro bank account. If the customer then pays us in GBP (we try to educate them!) we will process the transaction as a euro receipt in the euro bank account and then make an inter-bank transfer using the correct exchange rate in order to reconcile the transactions in the banks. Bank charges also have to be accounted for. It's not ideal, and risky with the way the pound has been performing lately. We don't have much of a problem with it these days as we makes efforts to agree the currency at the outset and insist we are paid in that currency, but one will still slip through every now and then.

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to Jackie0802
16th Mar 2017 10:20

Clients arguing any accounting software should fit to their business needs and practices. Not other way round.

If quickfile cloud accounting sort out their ledger system soon, I'll be happy chappy.

We should wait for that day..

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to Abidali Ibrahim
21st Mar 2017 13:22

"Clients arguing any accounting software should fit to their business needs and practices. Not other way round."

that's fine in theory , but if they have unique/eccentric business practices, they will not be met by off the shelf software. they will either have higher setup costs in customising a more flexible product (SAP/NAV), or higer running costs (paying someone to transfer information from one system to another). so what is it worth to them...

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16th Mar 2017 10:17

Why not change the split invoicing system? Hard to see what value it adds. If they want abenefit (dr & cr on laptop) they may think it is worth it...

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16th Mar 2017 11:08

But cloud accounting don't accept vat element only as a separate invoice. Similarly when come across vat and duty invoice from clearing agent I face similar issues.

Can't overcome this issue on Quickfile. But VT helps.

Now in dilemma which path to proceed...

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By Ash_D86
30th Mar 2017 16:06

Hi Abidali - it's always a little more difficult when you've got various currencies at play when invoicing and reconciling.

Having said that, I've just had a little play around inside Xero and can make it work.

Assuming that you've created the invoice in USD with VAT being converted at the rate you've entered when generating the invoice, in your case 1.25.

You're then able to reconcile this over the two bank accounts. Firstly, the USD bank account can be reconciled as you would do any other transaction, as it's in the same currency.

The 2nd part is the payment coming into the GBP Account. All you need to do is to remember to untick the 'Show GBP Items Only' check box. This will allow you to reconcile GBP to USD invoices.

Just make sure the conversion rate is all as you expect and you're good to go.

Alternatively, as already suggested, you could transfer the GBP amount over to the USD and reconcile via the USD Bank Account.

Any gains or losses through currency fluctuation would be calculated and posted to the Unrealised/Realised Gains and Losses Account.

For more information, take a look at this Help Centre link: https://help.xero.com/uk/Reconcile-Base-Payment-with-FX-Transaction

Hope that helps.

Ashley Driver
Education Specialist, Xero

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30th Mar 2017 18:19

Adminsoft Accounts is multi-currency, and it's free. But it's PC based only. Will only work across the web using Windows Remote Console.

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