QNE Software Sdn. Bhd.

User defined a customer’s currency as HKD for an oversea customer from Hong Kong
 User issue invoice in HKD, however receive payment in USD, and bank into a USD Bank account 

How should we handle this scenario? 

Solution

Before the solution applied, we need to create additional 2 Account for contra purpose
 

• Create 1 Customer account namely Contra Customer (HKD) in Customer Maintenance, set currency as HKD  
• Create GL contra account under Current Asset
  
  
  1. Issue Sales invoice to the HKD Customer  
     
  2. 
     
  3. Issue Journal Entries when receive customer’s payment, the amount follow as invoice amount in HKD
     
     Debit Contra Customer (HKD)
     Credit Customer
     
     
     
     
     
  4. Customer > Customer Knockoff, you can knockoff in this table, so the invoice and receive payment part has done  
      
  5. For the receiving in USD bank, issue Journal Entries for receiving amount in USD
     Notice that currency rate has to be updated as well
     
     Debit USD Bank
     Credit GL contra account
     
     
  6. So this transation will appear in USD Bank Account in Bank Reconciliation, the bank receive payment has done  
  7. And next, we need to contra off the contra account as proceed in step no. 2 and step 4 
  8.  Issue Customer Credit Notes by select the ‘Contra Customer (HKD)’ and follow invoice amount. Notice that the currency rate is updated
     
     Debit GL contra account
     Credit Contra Customer (HKD)
     
     
     
     
     
      
  9. Inquiry >  Account Inquiry, check GL Contra account, notice that there is a balance, this is the gain / loss figure actually  
  10. Issue Journal Entries for forex gain/ loss [Depends your scenario whether it is Gain or Loss] 
      
      Debit Forex Loss
      Credit GL contra account
      
      
      
      
       
  11. Check Account Inquiry again for the Contra Account, notice that the balance = 0
      
      
      
      
  12. If we check Contra Customer (HKD) account, the balance = 0 as well
       Remark: There must be no balance for these 2 Contra Account once payment is received.    
      
      
  13. At last, knockoff for ‘Contra Customer (HKD)’. Done