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A
anthonypego
May 19, 2022
Question

How to match a bank transaction to foreign and home bill payment?

  • May 19, 2022
  • 2 replies
  • 0 views

Im in the US, and I have a vendor I need to pay in EUR. I use a service called Wise which is the cheapest way to send the payment. Wise has its own conversion rate for the transaction and also charges a fee. I can't seem to record this correctly because Quickbooks Online wont let me match to a home and foreign bill at the same time. I assume for proper accounting I want to itemize the Wise fee and then the amount that went to my vendor, correct? If I didn't itemize this, then no big deal because I can just adjust the conversion in QB to match the USD that left my account.

2 replies

C
Carneil_C
May 19, 2022

Glad to see you here in the Community, @anthonypego. I've got some information to help you with your concern about matching bank transactions in QuickBooks Online. 

 

In QBO, the option to match a bank transaction to a home currency and bill at the same time is unavailable. You’ll want to manually create the corresponding entries so the system can automatically find the match and add them with your confirmation instead. 

 

For more tips about handling your banking transactions, you can open this article: Categorize and match online bank transactions in QuickBooks Online.

I'm also adding this link to get more hints about foreign currencies: Multi-currency tips and tricks.

 

On top of that, I've also included this reference helpful with the steps needed in balancing your account ledger in QuickBooks: Reconcile an account in QuickBooks Online. 

 

Don't hesitate to post again here if you have other questions or concerns with QuickBooks tasks and navigations. Have a great day and stay safe.

A
anthonypegoAuthor
May 20, 2022

When you say "manually create the corresponding entries", can you be more specific?

C
Carneil_C
May 23, 2022

I appreciate you for getting back to us, @anthonypego. I’ll provide some insights to get you going.

 

In QBO, we can generate an invoice or bill with different foreign currencies. However, we may only use the bank account with the currency that matches the invoice or bill when recording payments received or made. That said, you’ll have to manually record a payment for a foreign bill in a different foreign currency.

 

We can use a dummy account to make payment for that foreign bill, then transfer money from the foreign bank account to the dummy bank account. To do so, you'll need to ensure that the Multicurrency feature is enabled.

 

First, create a dummy account in the home currency to facilitate the movement between 2 different foreign currencies. Here's how: 

 

  1. Go to the Gear icon, then select Chart of Accounts
  2. Select New
  3. Under the Account Type column, select Cash and cash equivalent. Under the Detail Type column, pick Cash on hand. And under the Name column, type in Dummy Bank
  4. Before saving and closing, make sure that it is set to your home currency (for example Euro or whatever is your home currency).

 

Then, record the payment of the USD invoice. Let me guide you on how: 

 

  1. Go to the (+) New icon, then select Receive Payment.
  2. Set the Deposit To the Dummy Bank.
  3. Fill in the necessary information.
  4. Before saving the transaction, take note of the home currency (Euro or whatever is your home currency) amount displayed at the bottom right.

 

Once done, transfer the USD amount from the Dummy Bank to the EUR bank account through bank transfer. Here's how:

 

  1. Select Transfer from the (+) New icon.
  2. Under the Transfer Funds From column, select Dummy Bank from the drop-down arrow.
  3. Under Transfer Funds To, choose the EUR Bank from the drop-down arrow.
  4. From the Currency column, select Euro/home currency from the drop-down arrow.
  5. Enter the amount.

 

For more details about managing multi-currency transactions in QuickBooks Online, check out these articles:

 

 

Keep me posted if you still have questions or concerns about multi-currency feature in QBO. I'll be around for you. Have a great day!

Fiat Lux - ASIA
Fiat Lux - ASIA
May 20, 2022

@anthonypego 

Another option, you can open a Melio account for free to pay your international bills in USD and integrate it with your QBO. Paying international vendors with Melio has a $20 flat fee for each transaction. This fee is a fixed rate, no matter the payment size.

https://melio.grsm.io/quickbooks

 

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