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
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!