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  • #987301
    Hatching_It
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    HI all,

    I think this is the first time I’ve asked for help – how exciting!

    We pay our product manufacturers in USD and we use a company called World First to handle the AUD -> USD conversion. We enter our beneficiaries and when we need to pay them we enter the USD amount, they do a conversion, add AU$10 and we book it. We then get an amount in AUD that we have to transfer to them via standard bank transfer.

    What I’m not sure about is how we should be entering this into our accounting software, Wave.

    Are we technically just paying World First and therefore as far as our accounting is concerned we don’t even list our manufacturers?

    We receive a ‘Trade Confirmation’ from them, no tax invoice etc, so what do we use to prove that we’re actually buying something? The invoice from the manufacturer, which doesn’t exist in our accounting program?

    Any help here would be hot!

    Maclean

    #1162012
    LucasArthur
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    Howdy Maccas

    Mate, i dont use wave although i am not sure it has any major bearing on the situation.. And each person can record differently..

    For me (dont hold it against me but we use MYOB) i always allocate the cost of COGS/STOCK purchase to the supplier and raise a PO or have an outstanding amount owing to them as a bill..

    Then, when it comes time to pay them (inc adjustments for USD/AUD etc) i have created a credit card type account titled :FOREX SUPPLIER (name blank as irrelevant) and allocate the payment to the supplier from the FOREX account. This in turn clears the money owing to the supplier and then raises a debt for the FOREX TRADING ACCOUNT to be paid..

    From this i then simply do a bank transfer in MYOB from our everyday account to the FOREX for the amount owing for the STOCK.. Then i do an entry for the cost of the FOREX trade which appears to be $10 for you and enter that as a new EXPENSE being FOREX COST..

    Hope that is what you are asking, and not being an accountant i could be wrong so it may pay for the gurus to pop along and answer as well…

    Cheerio

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1162013
    Hatching_It
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    Thanks for the reply mate, that’s exactly what I was thinking of doing.

    So when you say a credit card type account, you’ve created it as a liability? We can set Assets (bank accounts) Liabilitys (loans, credit cards)

    Another question since you’re here.. What do you categorise eBay fees as? Professional Fees?

    Thanks mate.

    #1162014
    LucasArthur
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    Oh boy,,,,,

    Ok i have mislead you (your questions made me look in MYOB.. LOL).. my initial reply is probably how it should be done :)

    Actually i get the amount owing to supplier perfect (AUD/USD) and then i register as the payment going straight from my account to the supplier (even though there is FOREX in between) and then enter the cost of FOREX trade separately..

    All balances, although next payment i will process the way i initially advised and create a LIABILITY/CREDIT CARD type account for my FOREX trades…

    Re ebay fees, i have set up a separate expense titled eBay fees as i like to keep track of this cost and isolate it a little more than bundling with Professional.

    Hope that helps/.

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1162015
    Hatching_It
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    Champion, thanks Jason.

    If the brown stuff hits the spinning thing at tax time I’ll come after you :p

    Makes sense about making a new expense, I keep thinking you need to stick to what they give you, didn’t realise you can just make them up yourself.

    #1162016
    LucasArthur
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    Hatching_It, post: 187255 wrote:
    Makes sense about making a new expense, I keep thinking you need to stick to what they give you, didn’t realise you can just make them up yourself.

    Yeah, i just think that this being one of your larger expenses its best to keep a close eye on it… Thats my reasoning…

    Re the brown stuff, i dont like peanut butter but i will try to help if need be 😮

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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