Description

To create a payable as a Bill where the expectation is to remit payment in a crypto asset, SoftLedger customers create the Bill in the AP module in the fiat equivalent, as well as a Crypto Withdrawal to decrease the quantity of the asset in the Crypto module. While this is a two step approach, it is best practice to keep the Financial, AR, and AP modules represented in fiat. Follow the steps below in an example of paying 100 USDT for services as a payable.

• Create an Intermediary Ledger Account
• Create the Bill
• Pay the Bill
• Approve the AP Payment
• Create the Crypto Withdrawal
• Concluding Financial Impact

Create an Intermediary Ledger Account

Throughout the process there will be an intermediary account used so that the result of this two step process is to Credit the Crypto Asset Ledger Account and Debit the Expense Account.

For our example, the first step is to create the intermediary Ledger Account under Financial>Accounts:

Create the Bill

In the same manner as creating a fiat Bill, add a Bill with all relevant details, where the amount is equal to the total fiat amount of crypto paid (crypto asset quantity multiplied by crypto asset price).

 In our example, the second step is to create the fiat equivalent Bill as per below:

Resulting financial impact in associated Journal Entry:

• Dr. Hosting Expense $100
• Cr. Accounts Payable $100

Pay the Bill

Once the Bill has been created and approved, pay the Bill with the intermediary ledger account set up in the first step:

In our example, this would look like this:Notes:
-Utilized table filters for the vendor and the Due Date
-Utilized the Autofill option to fill in dates and amount to pay

Resulting financial impact in associated Journal Entry:

• Dr Accounts Payable $100
• Cr. Crypto Payments $100

Approve the AP Payment

Approve the Payment created  in the Cash Management>Pay Bills>AP Payments section.

In our example, this would look like this:
Note: If you have the System Setting to Auto-Approve AR Payments enabled, this step is not needed.

Resulting financial impact in associated Journal Entry:

• No financial impact

Create the Crypto Withdrawal

Once the Bill has been Paid and the payment approved, the crypto withdrawal to record the decrease and cost basis of the liquidated crypto asset can be added.

The Crypto Withdrawal would look like this:Notes:
-The Ledger Account is set to Crypto Payments (likely overriding a Wallet default setting)
-The Vendor, TX Hash, Reference, and Notes fields have been added with their respective details for easier matching
-The date matches the Payment Date and total amount (in this example) equals the payable exactly
-Be sure to run the Cost Basis and Journals process through to this transaction after creating

Resulting financial impact in associated Journal Entry:

• Dr. Crypto Payments $100
• Cr. USDT $100

Concluding Financial Impact

Once all steps have been completed, the financial impact would follow this in summary:

• Resulting Journal Lines (in separate Journals):
  • Dr. Hosting Expense $100
  • Cr. Accounts Payable $100
  • Dr Accounts Payable $100
  • Cr. Crypto Payments $100
  • Dr. Crypto Payments $100
  • Cr. USDT $100
    

• Concluding financial impact:
  • Dr Hosting Expense $100
  • Cr. USDT $100