US customer paid invoice by credit card

SOLVED

Hi there,

Our company has customers in USA and we invoice them in US Dollars, they usually paid by credit card in CDN Dollars. I have set up the book as multi-currency and also the customers under US currency. My question is when we get paid, the Create Receipt window shows in USD amount, but they paid by credit card which shows CDN dollars on the bank statement. Could anyone please tell me how to enter the payment?

Thanks~

  • 0
    verified answer

    If you enter the USD amount with the exchange rate when you record a receipt from a USD customer to your CAD bank account, Sage 50 should calculate and post the Canadian $$ amount to the bank.

    You can see what will happen before hitting post by clicking View | Journal entry, or pressing control-J

    Your bank may explicitly show the exchange rate on your statement / acknowledgement / batch confirmation.

  • 0

    Hi amber126,

    You can use the US amount from the receipt and CAD amount from the statement to calculate the exchange rate.

    For example, if the receipt shows USD $107 and the statement shows CAD $200.  Then, the exchange rate used will be 200/107, which is 1.8691588.  

    You can then go to Report in the receipt windows and select Display Receipt Transaction Details to see how journal will be entered in US and CAD value.  

    Hope this helps.  

  • 0 in reply to Keith L

    Hi Keith,

    Thank you for your help, it really helps me.

    I posted two invoices today one is customer will pay later,  total USD amount of invoice is $ 987.81. Customer paid in $1070 in CDN. The preview entries are:

    Dr   Accounts Receivable- Customer A   987.81(USD)

    Cr   Sales- Parts -USD                               987.81

    When I enter payment (lets say if customer A pays a week later), the entries are like:

    Dr   Cash in Bank (CDN$)                         1070 ( CDN)

    Cr    Accounts Receivable - Customer A       987.81

    Cr    Gain/ Loss on Foreign Exchange             82.19

    However, when I created a cash sale invoice, I chose payment method as paid by cash.

    The USD amount is 259.8, customer paid by credit card in CDN $280.

    Then the entries are like:

    Dr   Cash in Bank (CDN$)            Foreign Amount US $259.8           280

    Cr    Sales - Parts -USD                Foreign Amount  US $259.8                  280

    This time the account Gain/ Loss on Foreign Exchange is not involved.

    Is there something wrong I set with Accounts Receivable module? I can see there is only time difference of

    payment, why the second one doesn't have gain or loss on foreign exchange?

    PS~ my company used to have Business Vision,  we change to Simply recently. I remember in Business

    Vision, we have two linked accounts, Accounts Receivable - CDN and Accounts Receivable - USD.

    Now in Sage, I only set ONE Accounts Receivable linked.

    Does this cause the problem?

    Thank you in advance!

  • 0 in reply to RandyW

    Hi RandyW,

    Thank you for your help, it really helps me.

    I posted two invoices today one is customer will pay later,  total USD amount of invoice is $ 987.81. Customer paid in $1070 in CDN. The preview entries are:

    Dr   Accounts Receivable- Customer A   987.81(USD)

    Cr   Sales- Parts -USD                               987.81

    When I enter payment (lets say if customer A pays a week later), the entries are like:

    Dr   Cash in Bank (CDN$)                         1070 ( CDN)

    Cr    Accounts Receivable - Customer A       987.81

    Cr    Gain/ Loss on Foreign Exchange             82.19

    However, when I created a cash sale invoice, I chose payment method as paid by cash.

    The USD amount is 259.8, customer paid by credit card in CDN $280.

    Then the entries are like:

    Dr   Cash in Bank (CDN$)            Foreign Amount US $259.8           280

    Cr    Sales - Parts -USD                Foreign Amount  US $259.8                  280

    This time the account Gain/ Loss on Foreign Exchange is not involved.

    Is there something wrong I set with Accounts Receivable module? I can see there is only time difference of

    payment, why the second one doesn't have gain or loss on foreign exchange?

    PS~ my company used to have Business Vision,  we change to Simply recently. I remember in Business

    Vision, we have two linked accounts, Accounts Receivable - CDN and Accounts Receivable - USD.

    Now in Sage, I only set ONE Accounts Receivable linked.

    Does this cause the problem?

    Thank you in advance!

  • 0 in reply to amber126
    verified answer

    Hi Amber126,

    Gain/Loss on Foreign Exchange account is used if you have a sales invoice using exchange rate A but in receipt using a different exchange rate B.  This usually happens when pay later is used as payment method in sales invoice.  

    In your second case, when you create sales invoice and the payment method is credit card, cash or cheque, it means the sales and the receipt of payment happens at the the same time.  There is only 1 exchange rate used.  Therefore, you do not see the Gain/Loss on Foreign Exchange rate account used.

    For Sage 50, there is only one linked account for Account Receivable.  

    I do not see any major problem as the main point of your question is to make the US value has a Canadian value that is the same as the statement you receive

    Hope this helps.  

  • 0 in reply to Keith L

    Thank you so much!