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
Replies (10)
Please login or register to join the discussion.
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.
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.
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.