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User Tips
A quarterly feature from WON Systems geared towards enabling users to make full use of their Agency Business Software Solution.

Tip 1

Billing for Canadian Agencies to US (Foreign) Currencies

Most Canadian agencies have US or foreign clients that they need to invoice to usually in US dollars. While it is easy to just issue a C&P invoice in the foreign currency, it can distort the job ticket financial reporting and financial statement reporting. Additionally, there are additional steps to be performed once the US/Foreign cheque/transfer is received. What follows is a process to keep your job and financial reporting on track right from the time you issue the invoice:
  1. Create an Invoice (Estimate or Job Progress) for the US/Foreign Invoice without the currency portion. Ensure that the appropriate new US/Foreign tasks are created (for US fee rates if they are different from Canada) and added to the US Job Type. Also create a new revenue account with a new US Exchange revenue GL account created and assigned to the task.

  2. Create a 2nd Internal Invoice with the same number with an E behind (for Exchange or alternatively have it consecutive number). Us a new US/Foreign conversion task with the US conversion part of #1 as the amount (i.e. #1 * .30). A Job Billing invoice may work best, one task - US conversion, no taxes and just a description of US exchange rate and that its an INTERNAL INVOICE NOT FOR EXTERNAL DISTRIBUTION.

  3. Record the US$ receipt of the payment when cheque arrives. Ensure that you choose the US Dollar bank account when in Accounting/Client Payments. If you are not using a US account then receive the Canadian exchanged amount against both of the invoices created in #1 & #2 and the difference to your exchange gain/loss GL account.

  4. When you are doing your regular US/Foreign to CDN transfers, record the exchange portion of the invoice when transferred from US to CDN accounts. We talked about doing a transfer at the end of the week or for sure at the end of the month to move this money from US account to Canadian account. Relieve the invoice created above in #2. Book the gain/loss to your exchange gain/loss account.

  5. Also do a JE transferring the original US$ from the US Account to Canadian Account. Ensure that you only transfer the US$ value as the exchange portion will be added through the receipt of the US exchange invoice.

Please call or email me if you would like to speak more about this process or if you have any other questions.
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