Record exchange rate gains and losses

When you register the payment of a customer invoice in a different currency, you should enter the total amount received in GBP.

When the invoice was created in another currency, the amount in GBP was also registered in the system. If these differ, an exchange rate gain or loss will arise. If you use the invoice method, this must be recorded. If you use the cash method, payment is processed in the same way but is not registered.

Once you have entered the total, you can close the invoice and record the exchange rate gain or loss. Although this looks the same regardless of the bookkeeping method, only the invoice method will show this in the bookkeeping records.

Note!
At present there is a mistake in terms of gains and losses (it says “Record as an exchange rate gain” for a loss and vice versa) but this will be correct in the bookkeeping records.

In the case of exchange rate gains, account 3960 (Exchange rate gains on operating receivables and liabilities) will be credited.

In the case of exchange rate losses, account 3960 will be debited. Should you want the loss to be shown on account 7960 instead (Exchange rate losses on operating receivables and liabilities), you should record this manually instead of automatically via the invoice function.