Google, accounting and adwords payments
I’m one of the millions of Google advertisers who make monthly payments to the search giant for our ads to appear under searches or the adsense system in partner Google sites…
When I first discovered the adwords system, the simple interface, the easiness you could start to advertise, amazed me…
I was extremely happy that they gave me the possibility in paying in my currency of choice…After the first payment they generated an Invoice for me, it was written in my native language and it had all the elements legally required in a country 10.000 miles away from Google headquarters.
But, although the adword software was impeccable, human bureaucracy intervened…
As I was saying my adwords account was in my country’s currency - RON. So when I wanted to make a payment I would get into my account and ordered that my credit card be charged with let’s say 1000 RON (about 400 USD) … they were taking the money and the software would generate an Invoice for 1000 RON. But in the background google POS terminals were charging my credit card with 400 USD not 1000 RON…so my bank would transform the 400 USD in RON using the BUY exchange rate…that means the 400 USD would no longer be 1000 RON but 1020 or 1050 … depending on the bank’s exchange rate…
So with each payment I made I would have less money on the invoice that I was actually paying…Because programmers don’t really know accounting they didn’t care what currency they were displaying in the invoice generating software as long as they had a parity between currencies it seemed ok to display RON but charge USD…WRONG! You should display only what you charge. If you don’t have an account in a specific currency you should NEVER EVER generate invoices in that currency because you’ll only confuse the hell out of the poor bastards in accounting…
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