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LMB77
February 23, 2022
Question

Bank transfers and payments in multi currency

  • February 23, 2022
  • 1 reply
  • 0 views

I was hoping someone could help me - our non-profit opened a multi-currency bank account and we pay vendors internationally in foreign currency so I finally had to switch on the Multi-Currency feature but have hit a snag and need a workaround. 

 

We hold GBP, ZAR, AUD, and USD - USD being our home currency. 

We made a payment from the GBP account to a ZAR vendor but it won't let me do it. 

I tried to send the money to a ZAR clearing account but it wouldn't let me do that either.

I only have the option to pay in GBP or to transfer to a USD bank account. 

 

I paid in ZAR the bill is in ZAR and I  converted funds from our GBP account to make the ZAR payment  - what workaround is there for this? 

 

see attached error message it says I can only have one foreign currency at a time but what happens when you are working from foreign currency to foreign currency? 

 

Your help is greatly appreciated as I have multiple transactions of this nature and need a solution. 

 

Thank you,

Leigh

 

 

1 reply

Fiat Lux - ASIA
Fiat Lux - ASIA
February 23, 2022

We can recommend other options as a workaround

1. Utilize this app to pay your international vendors. You can pay in USD as your home currency and your vendors will receive it in their local currency (e.g ZAR). It supports QBO.

https://veem.grsm.io/veems

 

2. Open a Wise Business account to manage balances in multicurrency. You only need to have one login access and will easily to convert your balance between currency anytime to pay your vendors internationally. It supports QBO.

https://wise.prf.hn/l/64dl92k

  

L
LMB77Author
February 23, 2022

Thank you but I don't think you read my question. 

I am having a QuickBooks issue not where can I bank in foreign currency issue. I actually use Wise.com all the foreign currency accounts listed in my initial query are held at wise. I have connected QuickBooks to my wise banking. 

 

The issue I'm having is that QuickBooks is not letting me pay ( in terms of recording a transaction that has already happened in real life in my bank account) from my GBP account to a ZAR customer. I tried to send the GBP to a ZAR clearing account but but it will only let me transfer to a USD account not to a ZAR account and I paid from GBP to zar  not USD 

 

if anyone can help  with a workaround much appreciated. 

T
TirzahC
February 23, 2022

I've got your back, LMB77.

 

QuickBooks Online (QBO) makes it easy to help you process foreign funds. To do this, let's make sure that the Multicurrency feature enabled. Note that this is an irreversible process and cannot be changed.

 

Then, to pay a foreign vendor, you'll have to create a vendor with the correct currency. In recording the payment, you're only allowed to use the bank account with the currency that matches the bill. To do so, you can create a dummy bank account with the vendor's currency and move the funds from your bank account. Then, when recording the payment, you have to use the dummy account. Let me guide you on how:

 

Create a dummy account:

  1. Go to the Gear icon and choose Chart of Accounts.
  2. Select the New button.
  3. Input the necessary details and then Save and close.

Next, move funds from your account to the dummy account. For guidance, see this article: Transfer funds between accounts.

 

Once finished, you can now pay the vendor bill. Here's how:

  1. Navigate to the +New icon and choose Pay bills.
  2. Select the account under the Payment account field.
  3. Pick the vendor currency.
  4. Choose the open bill/s, then input the amount.
  5. Once done, save the transaction.

To further guide you with the detailed steps, please check out this article: Receiving and making payment for a foreign invoice/ bill with a foreign currency.  

 

Also, you can check out these links to learn more about multicurrency:

Don't hesitate to post again if you have any other questions about currency. I'm always here to help. Have a good one.

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