Hi there,

I've invoiced an overseas client for some services.

To make sure we didn't lose anything with the exchange rate, I put a set 
exchange rate.

The Invoice was for £10k, but I gave the Indian client an Indian Rupee 
cost of Rs 8,50,000 (as the exchange rate at the time was Rs 84.xxx).

I've now received this in our account - and we've received a total of 
c.£10,400 - as the rate went down to Rs 81.xxx

I want to show this invoice as being paid - but obviously they will have 
effectively paid £400 too much.

Many thanks in advance,

Toby

Toby wrote:

> I've invoiced an overseas client for some services.
> 
> To make sure we didn't lose anything with the exchange rate, I put a set
> exchange rate.
> 
> The Invoice was for £10k, but I gave the Indian client an Indian Rupee
> cost of Rs 8,50,000 (as the exchange rate at the time was Rs 84.xxx).
> 
> I've now received this in our account - and we've received a total of
> c.£10,400 - as the rate went down to Rs 81.xxx
> 
> I want to show this invoice as being paid - but obviously they will have
> effectively paid £400 too much.

So what's your question?  Are you asking whether you should refund
the excess to the client?

You don't say what the xxx in 84.xxx was, but if it was 788, say, you
would have been happy to make an exchange rate profit of £25, or if it
was 000 you would have been happy to make a profit of £119.  But now
you seem to be feeling guilty about making a profit of £400.

Let me ask you this.  What would you have done if the exchange rate
had gone up instead, and if you had sustained an exchange rate loss
of £400?  Would you have asked the client for more?  Bear in mind
that you did give them a Rupee price.

Why did you give a Rupee price anyway?  Could you not have told them
to get their bank to do the conversion, to ensure that the correct
Sterling amount arrived in your account?

If you're asking what to put on the receipt, I suggest, given that
you asked for 850kRs, that you put 850kRs and not £10k.

Ronald Raygun wrote:
> Toby wrote:
> 
>> I've invoiced an overseas client for some services.
>>
>> To make sure we didn't lose anything with the exchange rate, I put a set
>> exchange rate.
>>
>> The Invoice was for £10k, but I gave the Indian client an Indian Rupee
>> cost of Rs 8,50,000 (as the exchange rate at the time was Rs 84.xxx).
>>
>> I've now received this in our account - and we've received a total of
>> c.£10,400 - as the rate went down to Rs 81.xxx
>>
>> I want to show this invoice as being paid - but obviously they will have
>> effectively paid £400 too much.
> 
> So what's your question?  Are you asking whether you should refund
> the excess to the client?

Not looking to refund, but how do I show that more money has come in 
that was asked for.

> 
> You don't say what the xxx in 84.xxx was, but if it was 788, say, you
> would have been happy to make an exchange rate profit of £25, or if it
> was 000 you would have been happy to make a profit of £119.  But now
> you seem to be feeling guilty about making a profit of £400.
> 
> Let me ask you this.  What would you have done if the exchange rate
> had gone up instead, and if you had sustained an exchange rate loss
> of £400?  Would you have asked the client for more?  Bear in mind
> that you did give them a Rupee price.

I wouldn't have asked them for more money - as we had agreed a Rs 
exchange rate.
> 
> Why did you give a Rupee price anyway?  Could you not have told them
> to get their bank to do the conversion, to ensure that the correct
> Sterling amount arrived in your account?

Trust me, in India now they're clamping down on money leaving the 
country so the easiest way was to give them a rupee amount - less hassle 
at the bank.

> 
> If you're asking what to put on the receipt, I suggest, given that
> you asked for 850kRs, that you put 850kRs and not £10k.
> 

They've not requested a receipt - but I just want to know how to record it.

"Toby"  wrote in message 
news:HvydnZjNp_7oYTfVnZ2dnUVZ8qGdnZ2d@giganews.com...
> Ronald Raygun wrote:
>> Toby wrote:
>>
>>> I've invoiced an overseas client for some services.
>>>
>>> To make sure we didn't lose anything with the exchange rate, I put a set
>>> exchange rate.
>>>
>>> The Invoice was for £10k, but I gave the Indian client an Indian Rupee
>>> cost of Rs 8,50,000 (as the exchange rate at the time was Rs 84.xxx).
>>>
>>> I've now received this in our account - and we've received a total of
>>> c.£10,400 - as the rate went down to Rs 81.xxx
>>>
>>> I want to show this invoice as being paid - but obviously they will have
>>> effectively paid £400 too much.
>>
>> So what's your question?  Are you asking whether you should refund
>> the excess to the client?
>
> Not looking to refund, but how do I show that more money has come in that 
> was asked for.
>
>>
>> You don't say what the xxx in 84.xxx was, but if it was 788, say, you
>> would have been happy to make an exchange rate profit of £25, or if it
>> was 000 you would have been happy to make a profit of £119.  But now
>> you seem to be feeling guilty about making a profit of £400.
>>
>> Let me ask you this.  What would you have done if the exchange rate
>> had gone up instead, and if you had sustained an exchange rate loss
>> of £400?  Would you have asked the client for more?  Bear in mind
>> that you did give them a Rupee price.
>
> I wouldn't have asked them for more money - as we had agreed a Rs exchange 
> rate.
>>
>> Why did you give a Rupee price anyway?  Could you not have told them
>> to get their bank to do the conversion, to ensure that the correct
>> Sterling amount arrived in your account?
>
> Trust me, in India now they're clamping down on money leaving the country 
> so the easiest way was to give them a rupee amount - less hassle at the 
> bank.
>
>>
>> If you're asking what to put on the receipt, I suggest, given that
>> you asked for 850kRs, that you put 850kRs and not £10k.
>>
>
> They've not requested a receipt - but I just want to know how to record 
> it.

If it's a one off, and yours is a small business (i.e. no-one else 
particularly interested in the accounts) I would simply tweak the GBP sales 
value which you post to the P+L.

But normally (aka posh), you would take the difference to "loss / (gain) on 
[currency] exchange".

Note that this issue would have arisen in any case (unless the exchange rate 
happened to yield precisely GBP10k).

HTH

-- 
Martin

Martin wrote:
> "Toby"  wrote in message 
> news:HvydnZjNp_7oYTfVnZ2dnUVZ8qGdnZ2d@giganews.com...
>> Ronald Raygun wrote:
>>> Toby wrote:
>>>
>>>> I've invoiced an overseas client for some services.
>>>>
>>>> To make sure we didn't lose anything with the exchange rate, I put a set
>>>> exchange rate.
>>>>
>>>> The Invoice was for £10k, but I gave the Indian client an Indian Rupee
>>>> cost of Rs 8,50,000 (as the exchange rate at the time was Rs 84.xxx).
>>>>
>>>> I've now received this in our account - and we've received a total of
>>>> c.£10,400 - as the rate went down to Rs 81.xxx
>>>>
>>>> I want to show this invoice as being paid - but obviously they will have
>>>> effectively paid £400 too much.
>>> So what's your question?  Are you asking whether you should refund
>>> the excess to the client?
>> Not looking to refund, but how do I show that more money has come in that 
>> was asked for.
>>
>>> You don't say what the xxx in 84.xxx was, but if it was 788, say, you
>>> would have been happy to make an exchange rate profit of £25, or if it
>>> was 000 you would have been happy to make a profit of £119.  But now
>>> you seem to be feeling guilty about making a profit of £400.
>>>
>>> Let me ask you this.  What would you have done if the exchange rate
>>> had gone up instead, and if you had sustained an exchange rate loss
>>> of £400?  Would you have asked the client for more?  Bear in mind
>>> that you did give them a Rupee price.
>> I wouldn't have asked them for more money - as we had agreed a Rs exchange 
>> rate.
>>> Why did you give a Rupee price anyway?  Could you not have told them
>>> to get their bank to do the conversion, to ensure that the correct
>>> Sterling amount arrived in your account?
>> Trust me, in India now they're clamping down on money leaving the country 
>> so the easiest way was to give them a rupee amount - less hassle at the 
>> bank.
>>
>>> If you're asking what to put on the receipt, I suggest, given that
>>> you asked for 850kRs, that you put 850kRs and not £10k.
>>>
>> They've not requested a receipt - but I just want to know how to record 
>> it.
> 
> If it's a one off, and yours is a small business (i.e. no-one else 
> particularly interested in the accounts) I would simply tweak the GBP sales 
> value which you post to the P+L.
> 
> But normally (aka posh), you would take the difference to "loss / (gain) on 
> [currency] exchange".
> 
> Note that this issue would have arisen in any case (unless the exchange rate 
> happened to yield precisely GBP10k).
> 
> HTH
> 

Thanks for that. Normally we get an exact Sterling payment in the 
account - but the banks are just being extremely hard work in India at 
the moment.

I will edit the sales value here to equal what's arrived in the bank 
account.

On 19 Aug, 18:19, Toby  wrote:
> Martin wrote:
> > "Toby"  wrote in message
> >news:HvydnZjNp_7oYTfVnZ2dnUVZ8qGdnZ2d@giganews.com...
> >> Ronald Raygun wrote:
> >>> Toby wrote:
>
> >>>> I've invoiced an overseas client for some services.
>
> >>>> To make sure we didn't lose anything with the exchange rate, I put a set
> >>>> exchange rate.
>
> >>>> The Invoice was for £10k, but I gave the Indian client an Indian Rupee
> >>>> cost of Rs 8,50,000 (as the exchange rate at the time was Rs 84.xxx)> >>>> I've now received this in our account - and we've received a total of
> >>>> c.£10,400 - as the rate went down to Rs 81.xxx
>
> >>>> I want to show this invoice as being paid - but obviously they will have
> >>>> effectively paid £400 too much.
> >>> So what's your question?  Are you asking whether you should refund
> >>> the excess to the client?
> >> Not looking to refund, but how do I show that more money has come in that
> >> was asked for.
>
> >>> You don't say what the xxx in 84.xxx was, but if it was 788, say, you
> >>> would have been happy to make an exchange rate profit of £25, or if it
> >>> was 000 you would have been happy to make a profit of £119.  But now
> >>> you seem to be feeling guilty about making a profit of £400.
>
> >>> Let me ask you this.  What would you have done if the exchange rate
> >>> had gone up instead, and if you had sustained an exchange rate loss
> >>> of £400?  Would you have asked the client for more?  Bear in mind
> >>> that you did give them a Rupee price.
> >> I wouldn't have asked them for more money - as we had agreed a Rs exchange
> >> rate.
> >>> Why did you give a Rupee price anyway?  Could you not have told them
> >>> to get their bank to do the conversion, to ensure that the correct
> >>> Sterling amount arrived in your account?
> >> Trust me, in India now they're clamping down on money leaving the country
> >> so the easiest way was to give them a rupee amount - less hassle at the
> >> bank.
>
> >>> If you're asking what to put on the receipt, I suggest, given that
> >>> you asked for 850kRs, that you put 850kRs and not £10k.
>
> >> They've not requested a receipt - but I just want to know how to record
> >> it.
>
> > If it's a one off, and yours is a small business (i.e. no-one else
> > particularly interested in the accounts) I would simply tweak the GBP sales
> > value which you post to the P.
>
> > But normally (aka posh), you would take the difference to "loss / (gain) on
> > [currency] exchange".
>
> > Note that this issue would have arisen in any case (unless the exchange rate
> > happened to yield precisely GBP10k).
>
> > HTH
>
> Thanks for that. Normally we get an exact Sterling payment in the
> account - but the banks are just being extremely hard work in India at
> the moment.
>
> I will edit the sales value here to equal what's arrived in the bank
> account.-

How I would do it (it ends up the same way as Martin's suggestion) is
to credit the sales ledger with enough to zero out the customer
balance and the remaining receipt would be posted to sales.