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TurtleHermit
April 4, 2023
Question

Wise Transfers

  • April 4, 2023
  • 1 reply
  • 0 views

I have a Bank Chequing CAD account (CAD Acct) and a Wise USD account (USD Acct) connected to QuickBooks. I am trying to properly record transfers and fees related to Wise but cannot figure it out.

Essentially money is transferred from the CAD Acct to the USD Acct and is translated to USD as well as having a Wise fee included in the amount. For example if I was looking to transfer $20 USD to the USD Acct from the CAD Acct it would show as the following:

 

Total Sent: $29.67

 

Our Fee: $3

+

Converted: $26.67 (FX Rate: 0.750 = USD $20)

 

As a result, on the QuickBooks transaction feed for the CAD Acct I have a money out of $29.67 and have QuickBooks transaction feed for the USD showing money in of $20 USD.

 

I am looking to use QuickBooks record a transfer function to “match” this transfer between the two accounts as well as recording the Wise fee as an expense. I also believe that FX rates used by Wise and QuickBooks would differ.

 

Wondering if anyone has encountered this/has any solutions. My initial thoughts is the “match” function wont be able to be used and I will need to post journal entries and delete the transactions instead but hoping not the case.

1 reply

A
Alex M
April 4, 2023

Hi there TurtleHermit,

 

It's important that all your transactions be entered correctly for your books to be well balanced. QuickBooks Online is a great tool able to connect to your bank so that you can match them to the transactions in your books. I can provide some information about matching.

 

QuickBooks Online can match one transaction in the banking tab to more than one in your books, so what can be done is you create the transfer from the chequing account to the USD account by going to the +Newbutton, then Transfer. Enter the amount in CAD for the chequing account, then manually adjust the exchange rate in the text box so that the value in foreign currency is total to the amount that was deposited in the second account.

 

The second step would be to create the expense for the fees, by going to +New, then expense. Enter the information for this expense, then for the payment account, you'd need to select the bank account from which the money was transferred, which in this case would be the CAD account. Once done, hit Save.

 

You can then go match these two transactions by going to the Banking tab, then click on the transaction's description. Select find match, then put a checkmark beside both the transfer and the expense to match them to the bank transaction.

 

If you have any other questions, feel free to reach out here.

T
TurtleHermitAuthor
April 6, 2023

Just wanted to start by saying thank you for a prompt response. I have a few further questions below:

 

"QuickBooks Online can match one transaction in the banking tab to more than one in your books, so what can be done is you create the transfer from the chequing account to the USD account by going to the +Newbutton, then Transfer. Enter the amount in CAD for the chequing account, then manually adjust the exchange rate in the text box so that the value in foreign currency is total to the amount that was deposited in the second account."

 

The transfer to chequing account already exists as this account is also linked to QBO. Sorry if this was not clear. Using the above solution with this knowledge I would essentially need to manually recreate the existing transfer and turn it into two separate transactions per say. one for the transfer of funds, another for the expense, Is this correct to say?

 

Thank you again.

J
JamesM4
April 6, 2023

What you've described sounds right in terms of making sure you achieve the goal you've reached out about. I encourage you to take that route and let me know if you have additional questions as you go through the process. I'll be one message away. 

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