Vendor bill credit in different currency to vendor bill

Hi.  I have a vendor bill credit in Australian dollars .

I was wanting to apply this to a vendor bill which, when converted to Australian dollars, is roughly the same amount

 

The vendor bill however is in New Zealand dollars.

 

How do I apply a bill credit to a bill when they are in different currencies?

 

Both transactions are under the same subsidiary

Rookie Asked on June 16, 2021 in Accounting.
Add Comment
1 Answer(s)
Best answer

NetSuite only allows same currency transactions to be applied to one another, so you cannot apply the credit to the bill in the traditional sense. With NetSuite there are multiple workarounds. I would recommend:

Journal Entry NZD – DR Accounts Payable X CR Suspense Account (or perhaps realized gains/losses). The DR must have the vendor associated at the line level so it appears in the AP ledger.

Journal Entry AUD – CR Accounts Payable X DR Suspense Account (same account you used in the NZD entry).

If you functional currency is NZD, set the appropriate exchange rate on the AUD journal entry, so the balances net to zero in the Suspense Account (and vice versa if functional currency is AUD).

You then need to apply the NZD journal entry to the vendor bill (by creating a vendor payment for NZD 0).

You then need to apply the AUD journal entry to the vendor credit (by creating a vendor payment for AUD 0).

Other folks might recommend dummy bank accounts in the different currencies and then create a dummy “Bank Transfer” to settle the bank accounts so they always net to zero. This would of course require new GL accounts to be created in your general ledger.

I hope this helps!

Beginner Answered on June 17, 2021.

Thank you so much! I will give that a shot.

 

I had started creating a bank clearing account with the intention to inactivate this once the transactions are done to apply the vendor bill credit to the bill.

 

Your idea with the journal sounds more effecient

on June 21, 2021.

Good luck! Technically the journal solution requires 4 transactions (2 journals + 2 payments), whereas the bank clearing account solution only requires 3 transactions (1 payment, 1 receipt and 1 bank transfer), but I have found the journal solution is more logical to most users and it does not require the creation of bank clearing accounts. If this works for you please vote my answer as the best answer – trying to help as many users as I can 🙂

on June 21, 2021.

Thanks again. How do I vote for this as the best answer? I have upvoted your comment. Is that the same thing?

Actually, nevermind. Found it

on June 22, 2021.
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.
  • This site made possible by our sponsors:   Tipalti   Celigo   Limebox   Become a Sponsor