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Tidying up customer accounts for FX / bank charges

Clearing balances in debtor accounts left when receipts don't equal invoices

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Can anybody tell me the cleanest way to clear small balances left in customer debtor accounts when receipts haven't matched invoices due to FX differences or bank charges? We are clearing these by way of journal but these show up as an additional rows in the customer account and the invoice continues to show part paid. I like to gross up the receipt difference when allocating the cash to FX or bank charge so that the invoice is fully paid, but I don't know how to do this. Thanks

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27th Jun 2019 16:04

Which software are you using?

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27th Jun 2019 16:16

This is in QuickBooks online

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27th Jun 2019 16:16

This is in QuickBooks online

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By zarar
27th Jun 2019 16:25

When the payment is made it should be matched off in full on the customer ledger and the exchange rate difference should go to the P&L

Are they actually paying the invoice value in full?

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27th Jun 2019 17:07

Is it FX differences or bank charges or both ?

If I may be pardoned for saying so, bank charges go to bank charges and FX differences go to difference on exchange.

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By tom123
to lionofludesch
28th Jun 2019 09:34

I agree too, of course.

Do we know if the OP has multi currency set up?

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09th Jul 2019 22:28

I understand the double entry!
My issue is that foreign customers are paying GBP invoices from their foreign currency bank account. The bank are withholding bank charges and there are FX differences meaning the cash received in our bank account does not always equal the debtor. The only way I can see to clear this is by posting a journal however this means the debtor appears as £7 outstanding (per example) with a separate journal clearing the debt to zero. I wondered if there was a cleverer way of receipting the cash e.g. if the debtor is £100 but cash received is £97 can I receipt £100 and then do a journal between cash & bank charges rather than just receipt £97 which is all it appears I can do. Thanks

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By Matrix
to New to QB
09th Jul 2019 22:39

Why are you accepting £97 for a £100 invoice? Get your clients to pay in GBP and make this clear in contracts and invoices. If you have decided not to collect the difference for whatever reason, then this is a bad debt so write it off.

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09th Jul 2019 22:44

As I said I want to know how to do this without raising a journal so that the debt appears fully paid as the customer has fully paid it their end. It is our UK bank making the charges in some cases.
This is a question about how to make QuickBooks online work more efficiently and cleanly.

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By NDH
to New to QB
10th Jul 2019 09:17

Your bank should either send you or give to you upon request all the relevant info. This should include the original payment amount from the sender in the currency sent, the exchange rate used if applicable and any bank charges deducted.

To get the debt to show as fully paid you could either pay it in full and then add the bank charge to the bank account or you could add a credit to the customer account for the bank charge and clear the debt that way. I have assumed by whats been said in other posts that the payment is sent in GBP so there shouldn't be any fx discrepancies. The sender would have the option to pay all bank charges when they are making payment.

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