Multi Currency / Funds Transfer between Banks
Funds Transfer between Banks
Type
Purchases> Payment
Action
> Click PURCHASES activity
> Click PAYMENT module
> Click NEW
> DATE select 10 Jan 2012
> PAYEE TYPE select Bank
> PAYEE enter Your Company Name
> MODE select UOB Bank
For Mode, note that this will be the where the funds will be deducted from.
Details
> ACCOUNT select Bank USD
> DESCRIPTION enter Fund Transfer
> RECEIVE AMOUNT enter 10 000 (USD)
> PAYMENT AMOUNT enter 12 900 (SGD)
The Account will the bank account where the funds will be deposited into.Receive Amount is the amount the bank physically received.Payment Amount is the actual amount the paying bank is deducted.
Note that the transaction exchange rate has already been applied to the receive amount. Hence the exchange rate to be keyed in will be your book rate.
> Click ADD
Understanding the Double Entries & Exchange Difference
Type
Purchases> Payment
Action
> Click PURCHASES activity
> Click PAYMENT module
> Select the previously created payment
> Click EDIT
> Click GL
> Line 1, UOB ACCOUNT
Notice that SGD12,900 is withdrawn from the bank account.
> Line 2, Bank
USD10,000 or SGD12,880 is deposited in the account.Note that SGD12,880 is derived from the exchange rate entered at the paymentvoucher 1.288
> Line 3, Exchange Gain/Loss
From the transaction, you notice that SGD12,880 - SGD12,900 = -SGD20 valuethat is loss in exchange.For this amount, the system automatically accounts it at ExchangeGain or Loss Account.
> Click PURCHASES activity
> Click PAYMENT module
> Click NEW
> DATE enter 16 Jan 12
> PAYEE select Interesting Supplier Pte Ltd
> MODE select USD Bank
> Click [O]
Notice that USD bank is selected for mode.
> DOCUMENT enter Deposit
> Click OK
For Exchange Rate, notice that the system exchange rate of 1.288appear as you have earlier setup for the period at the exchange table
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