International Payments and accounts
Discussion
I think I'm getting confused. I have a client based in Ireland who pays me from the US head office.
Currently I am billing them in Euro's, and they have now started paying me electronically. The end sum that I see is in £ as it goes in the bank.
When they payed by euro cheque I could tick it off as the full Euro amount, and then adjust for any exchange rate loss due to currency movement between issuing the invoice and it being paid.
Now what the hell do I do? I have a single payment for multiple invoices, the invoices are in euro, but I only see the total in sterling.
I'm very confused.
Currently I am billing them in Euro's, and they have now started paying me electronically. The end sum that I see is in £ as it goes in the bank.
When they payed by euro cheque I could tick it off as the full Euro amount, and then adjust for any exchange rate loss due to currency movement between issuing the invoice and it being paid.
Now what the hell do I do? I have a single payment for multiple invoices, the invoices are in euro, but I only see the total in sterling.
I'm very confused.
You could start billing your client in GBP so that they take the exchange rate risk.
Alternatively, open up a company EUR account with your bank, and continue to bill your client in EUR. Keep the EUR in the account until you wish to change it into GBP. You may find that this second option is not viable if the client in question is the only one you bill in EUR, however, it'll be cheaper than letting the bank do the exchange for you.
Remember, some banks charge a monthly fee for having a foreign currency account. Others may not charge a fee, but may insist you have a minimum balance in the account at all times.
Use a broker to do the FX transaction. Many now have good online platforms meaning that you'll rarely speak to someone after setting up your account. There are plenty of brokers out there, many of them seeing TransferWise eat away at their business so you will be able to get a good deal. Don't register with more than two brokers and go with the firm that gives you the best rate first, otherwise you'll be going back and forth for little financial gain.
Alternatively, open up a company EUR account with your bank, and continue to bill your client in EUR. Keep the EUR in the account until you wish to change it into GBP. You may find that this second option is not viable if the client in question is the only one you bill in EUR, however, it'll be cheaper than letting the bank do the exchange for you.
Remember, some banks charge a monthly fee for having a foreign currency account. Others may not charge a fee, but may insist you have a minimum balance in the account at all times.
Use a broker to do the FX transaction. Many now have good online platforms meaning that you'll rarely speak to someone after setting up your account. There are plenty of brokers out there, many of them seeing TransferWise eat away at their business so you will be able to get a good deal. Don't register with more than two brokers and go with the firm that gives you the best rate first, otherwise you'll be going back and forth for little financial gain.
surveyor said:
Currently I am billing them in Euro's, and they have now started paying me electronically. The end sum that I see is in £ as it goes in the bank.
When they payed by euro cheque I could tick it off as the full Euro amount, and then adjust for any exchange rate loss due to currency movement between issuing the invoice and it being paid.
Now what the hell do I do? I have a single payment for multiple invoices, the invoices are in euro, but I only see the total in sterling.
The situation is no different. You know the Euro total for the multiple invoices. You know how much has actually come into your bank account in GBP so for an easy life you can work out a notional exchange rate and carry on as before. When they payed by euro cheque I could tick it off as the full Euro amount, and then adjust for any exchange rate loss due to currency movement between issuing the invoice and it being paid.
Now what the hell do I do? I have a single payment for multiple invoices, the invoices are in euro, but I only see the total in sterling.
You could make it a lot more complicated if you wanted to allocate bank charges but I wouldn't bother.
surveyor said:
I think I'm getting confused. I have a client based in Ireland who pays me from the US head office.
Currently I am billing them in Euro's, and they have now started paying me electronically. The end sum that I see is in £ as it goes in the bank.
When they payed by euro cheque I could tick it off as the full Euro amount, and then adjust for any exchange rate loss due to currency movement between issuing the invoice and it being paid.
Now what the hell do I do? I have a single payment for multiple invoices, the invoices are in euro, but I only see the total in sterling.
I'm very confused.
further to the above two comments - do you not get a remittance advice to enable you to match the Sterling receipt to the $Eu invoices?Currently I am billing them in Euro's, and they have now started paying me electronically. The end sum that I see is in £ as it goes in the bank.
When they payed by euro cheque I could tick it off as the full Euro amount, and then adjust for any exchange rate loss due to currency movement between issuing the invoice and it being paid.
Now what the hell do I do? I have a single payment for multiple invoices, the invoices are in euro, but I only see the total in sterling.
I'm very confused.
Countdown said:
surveyor said:
I think I'm getting confused. I have a client based in Ireland who pays me from the US head office.
Currently I am billing them in Euro's, and they have now started paying me electronically. The end sum that I see is in £ as it goes in the bank.
When they payed by euro cheque I could tick it off as the full Euro amount, and then adjust for any exchange rate loss due to currency movement between issuing the invoice and it being paid.
Now what the hell do I do? I have a single payment for multiple invoices, the invoices are in euro, but I only see the total in sterling.
I'm very confused.
further to the above two comments - do you not get a remittance advice to enable you to match the Sterling receipt to the $Eu invoices?Currently I am billing them in Euro's, and they have now started paying me electronically. The end sum that I see is in £ as it goes in the bank.
When they payed by euro cheque I could tick it off as the full Euro amount, and then adjust for any exchange rate loss due to currency movement between issuing the invoice and it being paid.
Now what the hell do I do? I have a single payment for multiple invoices, the invoices are in euro, but I only see the total in sterling.
I'm very confused.
surveyor said:
No I bloody don't.
Sorry I was just asking.... 
It sounds like you're dealing with "personal Customers" rather than "Businesses". It's a lot easier for businesses to send out remittance advices rather than dealing with a plethora of queries saying "You've paid us £Xk can you let us know which invoices/credit notes/ POs this relates to?"
Maybe give them a unique payment reference for each invoice, so that you can match it up on your bank statement?
Just been making a payment in Euros this morning and Transferwise was beaten (by a tiny margin i.e. £1 on a 5 figure sum so not going tomake me rich!) by one of our suppliers.
Currency Direct, MoneyCorp and UK Forex were all £100 to £200 more expensive. But all were a good £1000 cheaper than my Bank (Barclays)
Currency Direct, MoneyCorp and UK Forex were all £100 to £200 more expensive. But all were a good £1000 cheaper than my Bank (Barclays)
Countdown said:
Sorry I was just asking....
It sounds like you're dealing with "personal Customers" rather than "Businesses". It's a lot easier for businesses to send out remittance advices rather than dealing with a plethora of queries saying "You've paid us £Xk can you let us know which invoices/credit notes/ POs this relates to?"
Maybe give them a unique payment reference for each invoice, so that you can match it up on your bank statement?
Bit of both. Personal Customers are the ones who don't tell me they've paid then demand their plans.... Very few businesses who are my clients seem to use Remittance Advice. It sounds like you're dealing with "personal Customers" rather than "Businesses". It's a lot easier for businesses to send out remittance advices rather than dealing with a plethora of queries saying "You've paid us £Xk can you let us know which invoices/credit notes/ POs this relates to?"
Maybe give them a unique payment reference for each invoice, so that you can match it up on your bank statement?
They are all told to quote the invoice number as a payment reference. Some of them even do it.....
If they have paid Euros into your GBP account then the details of the transaction will be available from your Bank, either online or on the face of your statement.
Your statement will show the transaction amount in Forex, the exchange rate used and any charges, and the GBP amount.
I bank with Santander, and also get a transaction advice from them for every TT received which lists the full details of the payment. This one happens to be in GBP, but you can see the information supplied:
Your statement will show the transaction amount in Forex, the exchange rate used and any charges, and the GBP amount.
I bank with Santander, and also get a transaction advice from them for every TT received which lists the full details of the payment. This one happens to be in GBP, but you can see the information supplied:
Edited by sgrimshaw on Wednesday 29th July 12:41
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