foreign exchange transactions

[leftie]

We invoice in Sterling, Euros & US Dollars:

- Sterling & US $ payments are handled via our Sterling a/c whilst Euro's come in / go from our Euro Account

- When setting up Sage I created a dummy $ account so that we can invoice in $ - as well as a Euro Account

Several questions arise:
1) when we receive a $ payment to our bank account, this is converted to £ sterling - how do I key this payment into Sage? (in US $ in full & then some form of dummy inv/cr to balance it or do I just change the exchange rate for the transaction or...?????)
2) When we transfer money in / out of the Euro account to / from our £ account, there are charges & potentially different rates - assume charges go against 7901 but how do you handle exchange rate variance on this?
3) Some suppliers are paid in $ from our sterling account - again, what is the best way to show the charges & exchange rate variances (if any) in Sage?

Thanks in advance

[leftie]

Sorry - also just need to check - where we get a payment in & the amount is short because of bank charges, do we process as paid in full & then put a bank charge through for the difference or do we have to do a credit on the account then a bank charge?

[brucedenney]

1/ Receive as dollars in the dummy dollar account, then to a bank transfer to the Sterling account

2/ You set the exchange rate for the transaction so there should be no variance on the transaction, although there is a variance on the value not transferred this variance is handled by the foreign bank revaluation wizard.

3/ Transfer £ from the Sterling Bank account to the $ bank account, then pay form the $ bank account.

4/ Both work, so your choice.