How To Record A Purchase Abroad on sage line 50

1. Enter a batch supplier invoice using the Invoices option from the Suppliers window. Enter the net value of £230.00, with the appropriate tax code and purchase nominal code. 2. Enter a supplier payment using the Supplier option from the Bank Accounts window. Enter the net value of £235.00 as your cheque amount, then pay the invoice in full. This leaves a payment on account of £5.00 (i.e. the difference). 3. Enter a batch supplier invoice using the Invoices option from the Suppliers window. Enter the net value of £5.00 (i.e. the difference between the invoice and the amount paid), the Exchange Rate Variance nominal account (e.g. 7906) and the tax code T9. 4. Allocate the outstanding payment using the Supplier option from the Bank Accounts window. Enter the supplier's account reference, but leave the cheque balance as zero. Pay both the invoice and payment on account in full, and then click Save. You have now recorded your purchase invoice, the payment made and the difference between the two of them. The Euro and Your Business From 1st January 1999, the euro was introduced as the single currency unit of European Economic and Monetary Union (EMU). Initially the euro will be used for cashless transactions, but euro notes and coins will be available from the early part of 2002. The introduction of the euro as the single European currency will affect the way you do business with your customers and suppliers. Sage Line 50 makes the transition to trading with the euro as smooth and trouble-free as possible. The euro and the UK Although the United Kingdom is not participating in the initial entry to the euro, trading will still be effected. For example, some large UK companies have announced that they will trade in euros. This will work its way down the supply chain affecting many smaller businesses. UK exporters and importers may also be required to deal in euros. There will also be many indirect effects on UK businesses as the euro becomes a major world currency and as more and more companies within the EMU start to expand their trading areas. Using Sage Line 50 provides you with the ability to trade in this new European currency. All you need to do is enter your currency rates. The euro and Ireland Ireland is in the first wave of entrants to the euro and is subject to full membership rules. Irish businesses trading with other Economic Monetary Union (EMU) participants must use the rules of triangulation when converting currency between denominations of the euro. Sage Line 50 handles this triangulation for you automatically. All you need to do is enter your currency rates. What Is Triangulation? On sage Line 50 Triangulation is the procedure specified in the euro legislation for converting currency of one denomination of the euro into another. When conversion is between two participating currency units, such as Irish punts and French francs, the triangulation procedure is mandatory. When the conversion involves a currency not participating in the euro such as UK pounds to French francs direct conversion is allowed, although triangulation is recommended. There are three steps in triangulation: 1. Convert the first national denomination into the euro. This is done by dividing the amount you want to convert by the euro conversion rate of the first national denomination. 2. Convert the result of step 1 into the second national denomination. This is done by multiplying the result of step 1 by the euro conversion rate of the second national denomination. 3. Round the result to the nearest sub-unit of the second denomination. Note: Sage Line 50 always round to the 100th unit. The following examples show triangulation calculations. Convert 1000 Pounds Sterling To French Francs Convert 5000 Irish Punts Into Pounds Sterling Convert 1000 French Francs To Irish Punts