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The University remits payments overseas to cover purchases of equipment, materials and publications acquired from foreign suppliers. Payment can be made by a bank draft in foreign currency, or a documentary letter of credit.
Claims in foreign currencies that are due for payment are paid by the system as foreign currency bank drafts. The scale of bank charges applicable to bank drafts and documentary letters of credit is negotiated between by the Manager of Business Services and the bank. Charges for foreign drafts are debited to the bank charges account. Charges for the preparation of documentary letters of credit are debited to the account to which the transaction is charged and the bank charges account is credited.
The Accounts Payable System processes claims and credit notes expressed in foreign currencies. When a foreign currency document is processed, the relevant foreign currency code, derived from a system table of codes and updated exchange rates, is entered into the system. This permits document amounts to be entered in that currency and to be converted to Australian dollars for accounting purposes.
A foreign currency claim is posted to the general ledger at the latest exchange rate held within the system. If the exchange rate has changed at the time of payment, any loss or gain resulting from the difference between the posting rate and the payment rate, is calculated automatically. A system-initiated journal entry then debits/credits the loss/gain to a foreign loss/foreign gain account for the Business Office concerned.
Where there is a need to make payments to an overseas destination directly into a bank account, it is necessary to make use of telegraphic transfers. This can be arranged by choosing Wire under the Payment Method on the Schedule Payment screen when processing the voucher. Telegraphic transfers are run once a week and there is a charge of $50 per transaction. it usually takes 4-5 days for the payment to be deposited into the recipients bank account. More information on Telegraphic Transfers can be found in the ESP Library ESP Financials To learn more about creating a template, follow the path in the ESP Library ® Accounts payable ® Peoplesoft Payables ® Entering Vouchers ® Data Entry Procedures ® Voucher Entering - Telegraphic Transfers
Telegraphic Transfers
Payment Runs and Daily Cut-off Times
Urgent Manual Cheques
Vendor Codes and Vendor Maintenance
