Sage 300 - Purchasing from foreign country - how to process invoices against PO

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Hi,

So, I am four weeks into using and learning Sage 300.  I've got lots to learn still so forgive me if my question and details within are not as clear as they need to be.  

I'm not sure the best way to account for some of our foreign purchases that are paid in foreign currency.  So, I'll start with the process that was occurring.  

First, the PO was created and recorded for the amount of the purchase in foreign currency.  That is, no foreign currency adjustment was made. Receipt of goods occurred and it was received in sage in domestic currency at amount of foreign dollars.  Again, I struggle with explaining that (probably in part because it seems so odd) but say the PO was for 10 widgets at 1.0 euro.  The PO was created for 10 usd and received at 1 u0sd.  Then, when invoice was received AND when ready to pay due to payment terms, the invoice was paid via wire transfer.  The invoice info was entered in sage and the difference between actual amount paid and the amount previously set up in PO is recorded as an additional cost (say approximately 3 USD).  So, there are a few problems with this approach.  One, the costs received into system is wrong so inventory and cogs is inaccurately timed.  Two, AP credit account (received but not invoiced) is not accurate and we have unrecorded liability.  Three, there is the chance that eventually the exchange rates change so much that USD is stronger than EUR (not looking for a debate here!  :)  only thinking about potential complications with existing process).

 It's overall a small part of the business so I'm not sure if there was a concern for the accounting issues and consequences but i'm trying to tidy things up.  Also, i'm aware there is a wire module of sage 300 (not sure if there is a foreign currency module or vendor option i'm not aware of) but due to limited nature of these transactions we're probably not ready to implement additional modules.

One approach is to actually create the PO and receive in the foreign currency converted amount.  But what happens when invoice comes in if it's LESS than PO?  I don't know of a way to add a negative additional cost.  If anyone can lend some advice or share how your company handles, I would be very appreciative.  Thanks in advance,

Steve

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