We opened a bank account to receive payments from American clients and pay our American suppliers. When I create the account in Sage 50 at one point it's asking me to enter the links accounts. Our Canadian bank account is already set up with links accounts (Interest income, bank charges, exchange gain, NSF fee, Error gain, Interest expenses and adjustment).
I was wondering if I should use the same links accounts as the one for the Canadian bank account or create different link account numbers for the USD currency to setup my USD bank account?
Thanks in advance.
I would likely go with separate account nbrs. Just a reminder that your financial stmts will have to show all amounts in CDN funds including the US bank accounts and its linked accounts.
I agree with smithco. Separate accounts are the way to go.
Thank you smithco.
One thing I'm not sure I understand is why the financial statements for the US bank account should show in CDN funds? So far (we opened the bank account October 31st) the statements I received (Oct. & Nov.) show in US funds and I thought it would be the same in Sage 50 and when I will do my bank reconciliation in the system (didn't do it for the US yet as I didn't have the new Sage 50 then and after I had to figure out how to create the bank account while doing my other things.)
When I read you guys, you make it seem so easy but it's not that easy :-). At least for me.
Thanks again and Jenn too
The income stmt and the balance stmt needs to be in Cdn currency. So if you have a US bank account then it needs to have the conversion to Cdn funds noted and that is thru a Gain/Loss of Foreign Exchange account (or Currency Exchange account). Each time you do a US fund transaction you should do an exchange to Cdn dollars and putting the difference in the 'Gain or Loss of Foreign Exchange' account (usually in the 5000 acct nbr). Try typing 'Foreign Exchange - USD dollars' in the search box at top right hand corner. You should get a discussion that explains in detail how it works.
Also open up the sample company in Sage 50 and have a look at a couple of transactions there that were made in the US Bank Account. Some of these entries are made using the foreign currency function in Sage 50.
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