Hi everyone,
Whenever we make an overseas supplier payment via bank transfer, our bank charges a fee for issuing the SWIFT payment.
What is the correct way to record these bank charges in the related PO inside ERPNext? And how can we ensure these charges are included in the final valuation of the goods received from that supplier?
If you want the fees included in the cost of your items, I think you’ll have to use Landed Cost Voucher.
Typically bank fees are part of overhead.
I have a similar situation when paying overseas. I add a bank fee to the Taxes and charges table. I also include the appropriate accounting dimension for these bank fees. This way costing is allocated for overall profit calculations. It allows my to make the payment against the sales invoice for the total amount (including bank fees). If your bank fees are a separate line item in your bank statement, you’ll likely want a separate transaction to allow for reconciliation.
Hi @Abdelrahman_Aly ,
This is a good question, but in most cases the fees are minimal compared to what is being purchased so no matter what the bank fees are they will very rarely amount to more than 1% of the final cost. That being said, the way I normally handle bank fees is in the Payment Entry add them as a Reverse Discount. So that at least my bank balance reflects the correct value.
Landed Cost Voucher will handle the specific use case of increasing the value of the goods being imported but that requries you to remember or keep track of this expense seperately and then add them into the landed cost voucher.