hiya,
we sell a lot of items to Europe through eBay , we receive euros . WE pay a papal fee and a currency exchange fee . These fees are taken off after the customer has paid so for example the customer has paid 69.00 euros we convert that to pounds and invoice for that amount with the vat box ticked . But then we record the fees -the payment processing fee and the currency exchange fee also in pounds (vat box zero) .
my question is we are paying VAT on the amount we invoice (without the fees taken off) but we haven't actually received that amount, is there another way to record these types of sales. This can be quite a lot of money when the transactions are higher value .
Hi Caroline,
The simplest solution is to record the invoice payment in full, then record
a separate Money Paid Out transaction allocated to the Bank Fees expense
account to cover the fees and exchange rate difference. Would that work
for you?
