Pay foreign currency bill

Software: QuickBooks Premier 2009/10 Asia edition

Home Currency: Malaysia Ringgit

On 9 May 2011, you recorded a bill from a Brunei Dollar Supplier (BND Supplier) for an amount of B$5,000.00 at the exchange rate of 2.48. Your Home Currency RM amount for this transaction was at RM12,400.00.

For the month of Jun 2011, your exchange rate for B$1 was equivalent to RM2.50.

On 3 Jun 2011, you recorded a Credit Note from BND Supplier for the amount of B$1,600.00 at the exchange rate of 2.50. Your Home Currency (RM) equivalent for this transaction was at RM4,000.00

On 6 Jun 2011, you paid BND Supplier B$3,400.00 for the bill of B$5,000.00, which they billed you earlier, and at the same time, you knocked off the Credit Note of B$1,600.00. You paid this amount from your Brunei Dollar Bank account and the exchange rate set for this transaction was at 2.50.

How to record this payment?

In the Pay Bill screen, select the Bill from BND Supplier (amount B$5,000.00), click the Set Credit button to select your credit note to use in this transaction. From Credit Window, the ‘Credit Amount’ column will shows 4,000.00 (this is in RM) and ‘Amt. To Use’ column 1,600.00 (this is in Brunei Dollar). Click the ‘Done’ button to apply the Credit Note to the Bill. Next, in your Pay Bills window, your ‘Amt. Due’ column shows B$5,000.00, ‘Credit Used’ column B$1,600.00 and ‘Amt. To Pay’ B$3,400.00. This will result an exchange loss of RM68.00.

20110620_SetCredit

20110620_PayBill
To check the movement of these transactions, simply print a Custom Transaction Detail Report.

20110620_report

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