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Advice needed: setup to pay suppliers in foreign currency
07-20-2020, 04:31 AM,
Advice needed: setup to pay suppliers in foreign currency
Hi Everyone

Our US company pays its purchase orders to merchandise supplier in Euros using a a Broker based in the US offering with two different methods:

A) Our company gives an order to pay the merchandise supplier in euros and the broker bills us for each transaction in USD, with the exchange rate that applies. This is what happens for most transactions our webERP is correctly setup for this type and I don't have any question about this method.


B) Our company can use a reserve of Euros that we have : we buy Euros from the Broker with our USD bank account and decide to pay some suppliers with it and replenish this account as needed.

I need help with the accounting set up.
My assumption is that 
1) we create a new bank account in Euros
2) we setup the broker as a supplier and we enter the purchase like a PO from this supplier as a USD invoice with the exchange rate they give us
3) this is where I need help: we need to receive these EUR in our Euro bank account
4) we use our Euro account to pay the merchandise supplier

my questions: 
Do we need to setup the broker as a supplier that bills us in USD and that we pay using our USD bank account?
Do we need to also setup the broker as a customer that pays us in EUR to the new EUR bank account?

Thank you for your advice!

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