VAT posted in wrong currency

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Subject Author Date VAT posted in wrong currency plbrown 03-13-2007  Re: VAT posted in wrong currency Peter Saxton 03-13-2007  Re: VAT posted in wrong currency plbrown 03-13-2007  Re: VAT posted in wrong currency Peter Saxton 03-13-2007  Re: VAT posted in wrong currency plbrown 03-13-2007  Re: VAT posted in wrong currency Duncan Clark 03-15-2007
Posted by plbrown on March 13, 2007, 12:13 pm Please log in for more thread options I buy goods from Europe to sell in the UK. I buy and sell in Euros and I was told (wrongly) that it wasn't possible to invoice somebody for VAT in Euros. Therefore if I sold them Euros10000 of goods I would calculate what that was in sterling and then make a separate VAT invoice in sterling. This worked fine before I put the accounts on QB, as people would make two payments - one in Euros for the goods and one in sterling for the VAT. I know for the future that I can invoice somebody in Euros for VAT so that isn't a problem... The problem comes when I'm backdating the accounts: a) If I record a sale in Euros as having no (Euro) VAT then how do I account for the VAT? b) If I record the sale as including Euro VAT then how can I receive payment in Euros and sterling (which is how I've been paid)? Would appreciate your help Peter Posted by Peter Saxton on March 13, 2007, 2:01 pm Please log in for more thread options wrote: >I buy goods from Europe to sell in the UK. I buy and sell in Euros and >I was told (wrongly) that it wasn't possible to invoice somebody for >VAT in Euros. Therefore if I sold them Euros10000 of goods I would >calculate what that was in sterling and then make a separate VAT >invoice in sterling. This worked fine before I put the accounts on QB, >as people would make two payments - one in Euros for the goods and one >in sterling for the VAT. > >I know for the future that I can invoice somebody in Euros for VAT so >that isn't a problem... > >The problem comes when I'm backdating the accounts: > >a) If I record a sale in Euros as having no (Euro) VAT then how do I >account for the VAT? It still has VAT. It's just calculated in sterling. Convert everything into sterling and prepare the VAT return using the sterling amounts. You don't account for anything separately depending on the currency. >b) If I record the sale as including Euro VAT then how can I receive >payment in Euros and sterling (which is how I've been paid)? > >Would appreciate your help > >Peter How can you receive payment? However they pay you! There's no problem with any of the above. VAT returns are in sterling. Bank accounts are in a particular currency. Accounting records are in sterling. You just calculate the conversion whenever you need to. -- Peter Saxton from London peter@petersaxton.co.uk Posted by plbrown on March 13, 2007, 4:58 pm Please log in for more thread options > wrote: > > >I buy goods from Europe to sell in the UK. I buy and sell in Euros and > >I was told (wrongly) that it wasn't possible to invoice somebody for > >VAT in Euros. Therefore if I sold them Euros10000 of goods I would > >calculate what that was in sterling and then make a separate VAT > >invoice in sterling. This worked fine before I put the accounts on QB, > >as people would make two payments - one in Euros for the goods and one > >in sterling for the VAT. > > >I know for the future that I can invoice somebody in Euros for VAT so > >that isn't a problem... > > >The problem comes when I'm backdating the accounts: > > >a) If I record a sale in Euros as having no (Euro) VAT then how do I > >account for the VAT? > > It still has VAT. It's just calculated in sterling. Convert everything > into sterling and prepare the VAT return using the sterling amounts. > You don't account for anything separately depending on the currency. > > >b) If I record the sale as including Euro VAT then how can I receive > >payment in Euros and sterling (which is how I've been paid)? > > >Would appreciate your help > > >Peter > > How can you receive payment? However they pay you! > > There's no problem with any of the above. VAT returns are in sterling. > Bank accounts are in a particular currency. Accounting records are in > sterling. You just calculate the conversion whenever you need to. > > -- > Peter Saxton from London > p...@petersaxton.co.uk Not sure if this post has gone through (my laptop crashed just as I pressed send). If I invoice somebody in euros and sterling, then they'll pay me in euros and sterling. However, when I record the invoice in QB I can only do it in euros, the euro receipt will therefore pay for the goods, but how do i clear the remaining euro VAT when I receive the money in sterling? Can you clear a euro total from a sterling account? Posted by Peter Saxton on March 13, 2007, 5:23 pm Please log in for more thread options wrote: >> wrote: >> >> >I buy goods from Europe to sell in the UK. I buy and sell in Euros and >> >I was told (wrongly) that it wasn't possible to invoice somebody for >> >VAT in Euros. Therefore if I sold them Euros10000 of goods I would >> >calculate what that was in sterling and then make a separate VAT >> >invoice in sterling. This worked fine before I put the accounts on QB, >> >as people would make two payments - one in Euros for the goods and one >> >in sterling for the VAT. >> >> >I know for the future that I can invoice somebody in Euros for VAT so >> >that isn't a problem... >> >> >The problem comes when I'm backdating the accounts: >> >> >a) If I record a sale in Euros as having no (Euro) VAT then how do I >> >account for the VAT? >> >> It still has VAT. It's just calculated in sterling. Convert everything >> into sterling and prepare the VAT return using the sterling amounts. >> You don't account for anything separately depending on the currency. >> >> >b) If I record the sale as including Euro VAT then how can I receive >> >payment in Euros and sterling (which is how I've been paid)? >> >> >Would appreciate your help >> >> >Peter >> >> How can you receive payment? However they pay you! >> >> There's no problem with any of the above. VAT returns are in sterling. >> Bank accounts are in a particular currency. Accounting records are in >> sterling. You just calculate the conversion whenever you need to. >> >> -- >> Peter Saxton from London >> p...@petersaxton.co.uk > >Not sure if this post has gone through (my laptop crashed just as I >pressed send). If I invoice somebody in euros and sterling, then >they'll pay me in euros and sterling. However, when I record the >invoice in QB I can only do it in euros, the euro receipt will >therefore pay for the goods, but how do i clear the remaining euro VAT >when I receive the money in sterling? Can you clear a euro total from >a sterling account? Have you set up your accounts in Euros? -- Peter Saxton from London peter@petersaxton.co.uk Posted by plbrown on March 13, 2007, 5:52 pm Please log in for more thread options > wrote: > > > > > > >> wrote: > > >> >I buy goods from Europe to sell in the UK. I buy and sell in Euros and > >> >I was told (wrongly) that it wasn't possible to invoice somebody for > >> >VAT in Euros. Therefore if I sold them Euros10000 of goods I would > >> >calculate what that was in sterling and then make a separate VAT > >> >invoice in sterling. This worked fine before I put the accounts on QB, > >> >as people would make two payments - one in Euros for the goods and one > >> >in sterling for the VAT. > > >> >I know for the future that I can invoice somebody in Euros for VAT so > >> >that isn't a problem... > > >> >The problem comes when I'm backdating the accounts: > > >> >a) If I record a sale in Euros as having no (Euro) VAT then how do I > >> >account for the VAT? > > >> It still has VAT. It's just calculated in sterling. Convert everything > >> into sterling and prepare the VAT return using the sterling amounts. > >> You don't account for anything separately depending on the currency. > > >> >b) If I record the sale as including Euro VAT then how can I receive > >> >payment in Euros and sterling (which is how I've been paid)? > > >> >Would appreciate your help > > >> >Peter > > >> How can you receive payment? However they pay you! > > >> There's no problem with any of the above. VAT returns are in sterling. > >> Bank accounts are in a particular currency. Accounting records are in > >> sterling. You just calculate the conversion whenever you need to. > > >> -- > >> Peter Saxton from London > >> p...@petersaxton.co.uk > > >Not sure if this post has gone through (my laptop crashed just as I > >pressed send). If I invoice somebody in euros and sterling, then > >they'll pay me in euros and sterling. However, when I record the > >invoice in QB I can only do it in euros, the euro receipt will > >therefore pay for the goods, but how do i clear the remaining euro VAT > >when I receive the money in sterling? Can you clear a euro total from > >a sterling account? > > Have you set up your accounts in Euros? > > -- > Peter Saxton from London > p...@petersaxton.co.uk- Hide quoted text - > > - Show quoted text - If I check the customer list then each customer has a currency assigned. If I try to invoice in another currency then I get an error message. Does this mean that my QB is not set up correctly? 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