How do I pay my supplier who is in USD but I pay them in Sterling?

How do I pay my supplier who is in USD but I pay them in Sterling?

Question/Problem

How do I pay my supplier who is in USD but I pay them in Sterling? I send my supplier purchase orders in their currency, i.e. Euro, USD etc, but I pay them from my Sterling bank account. How does that work?

Resolution/Solution

When making the posting you will be using the currency conversion rate that is set in System Setup - System Data - International - Currency Conversions.
Make sure the conversion rates are current and the date is not in the past.

Steps

  1. Open the Supplier record.
  2. Open the statement screen.
  3. Click on the Edit button.
  4. Click on the Actions button and select New Payment. 
  5. In the payment dialog:
    1. Payment Type: e.g. BACS, credit card
    2. Currency: Supplier's currency
    3. Bank Account: Sterling Bank
    4. Payment Date: The date of the payment
    5. Code: The code you wish to use to identify the payment
    6. Payment Amount: The payment amount in the currency. This will be converted using the conversion rate when it is entered into the bank. 
  6. Click OK

Notes/Caveats

To find the conversion rate divide 1 by the conversion rate for that currency, then use this to multiply the the non-Sterling amount you entered in step 5.6 above, this is the amount that will show in the Sterling bank.

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