This article covers how to enter and pay a Vendor who has billed in foreign currency i.e., USD, charging on the disbursement to the Client/Matter within Unity® Accounting

There are two options:

1. Enter the Vendor Invoice prior to paying to charge onto Client/Matter, and pay later, accounting for the exchange rate gain or loss, or
2. Enter the Vendor Invoice charging onto the Client/Matter only when paying the Vendor Invoice.

Option 1

Processing the Vendor Invoice

1. Capture the Vendor Invoice in the Vendor module as normal entering the Amount in CAD, converted at the process days rate, i.e., USD 1 - CAD 1.40, and charging onto a Client/Matter. 
2. Disbursement Code used is Exempt of TAX.
    

Payment of Vendor Invoice: (exchange rate gain)

1. Pay the Vendor Invoice from the CAD General Bank to establish the exact amount.
2. In the Vendor module, select "New Transaction" > "Pay Invoices".
3. Select "Single Vendor" and the Vendor number.
4. Select "Make partial payments (show invoice details)"

5. Enter the exact amount paid in the General Bank in the "Payment" column.

   Continue to complete the Payment details below.

   The Payment Memo can be used to record the payment exchange rate.

    

Record the Exchange Rate Gain

Open a New General Ledger account in the Chart of Accounts, using Account Type "Revenue" for the Foreign Exchange Gains and Losses

1. In the Vendor module, process a Vendor Credit Note by selecting "New Transaction" > "Enter Credit"

2. Process a Vendor Credit on the Vendor for the exchange difference between the original amount of the Vendor Invoice processed and the final payment.

   This can be processed either to the Client/Matter, if the Client is to benefit, or the above General Ledger account.

    

   
    
   

Record the Exchange Rate Loss

In the event that when paying the Vendor Invoice there is a loss in the exchange rate, i.e., paying more than what was charged onto the Client/Matter, this difference can be processed either onto Client/Matter (if that was part of the agreement), or to the Foreign Exchange Gains and Losses GL as created above.

1. In the Vendor module, enter a new Vendor Invoice for the exchange difference, selecting "New Transaction" > "Enter Invoices". 

         

   The "Description" field can be used to record the exchange rate difference. In the example below, the loss is processed to the Foreign Exchange Gains and Losses GL.

   
   
2. In the Vendor module, select "New Transaction" > "Pay Invoices".
3. Select "Single Vendor" and enter the Vendor number.
4. Select "Pay invoices in full".
5. Select the two Vendor invoice amounting to the same Total as the payment paid in the General Bank.
6. Complete the Payment details below.
7. Click on "Pay & Close".

Option 2

Processing the Vendor invoice once paid. This option only allows the charge on of the disbursement onto the Client/Matter once paid and doesn't allow for the Accounts Payable liability to be recorded for reporting, i.e., Accounts Payable Age Analysis.

1. Pay the Vendor Invoice in the General Bank.
2. Process the Vendor Invoice as outline above with the amount paid, onto the Client/Matter.
3. Process the "Pay Invoices" in the Vendor module.

4. No exchange gains or losses are recorded, there for no Foreign Exchange Gains and Losses GL is required.