The following guide is a suggestion, if you unsure if this is suitable, please check the best way to deal with postings by checking with your accountants.
If you want to keep the ÂŁ1,201.11 charged to your client, and if the foreign exchange gain does not form part of your supplier statement, which we suspect it wont, as it's where you have managed a favorable rate from the bank since posting the invoice and paying it.
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You could pay the ÂŁ1,201.11 invoice out on your supplier ledger in full, and not post the foreign exchange gain to the supplier ledger, instead post a bank receipt to one of your firms nominals. The inflated Supplier Payment will then contra against the bank receipt for the foreign exchange gain on your bank rec.
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