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M
Mohamed Hani
September 14, 2022
Question

Collections received in a different currency.

  • September 14, 2022
  • 1 reply
  • 0 views

I have an account that is set to AED (Dirhams), I have bank accounts in AED, USD & EUR.

I have an invoice in USD but the client wired the transfer to the EUR bank account.

I Created a Dummy account in USD to settle the invoice in USD and then I tried to transfer the money from USD to EUR bank account but I couldn't manage to do that.

then this message appeared.

 

Transactions can have only one foreign currency at a time.

 

How Can I resolve this issue?

 

Thanks in advance.

1 reply

R
Rea_M
September 14, 2022

Hello there, @Mohamed Hani. 

 

Let's create a new dummy bank account in the home currency (AED) to facilitate the transfer of funds between 2 different foreign currencies (from USD to EUR) in QuickBooks Online (QBO).

 

When you issue an invoice in a foreign currency, you're only able to use the home currency bank account or the one that matches the invoice. In your case, let's use your home currency bank account to execute the process.

 

To do this, you'll first have to create a new dummy bank account in the home currency (AED). Here's how: 

 

  1. Go to the Gear icon.
  2. Select Chart of Accounts
  3. Click New.
  4. Under the Account Type column, select Cash and cash equivalent. 
  5. Under the Detail Type column, select Cash on hand. And under the Name column, type in Dummy Bank.
  6. Before saving and closing, make sure that it is in the home currency (AED).

 

Next, you'll have to settle the invoice to the dummy bank account (in the Receive Payment module, set the Deposit To field to Dummy Bank). Then, make sure to take note of the home currency (AED) amount displayed at the bottom right.

 

Once you're done, you'll have to transfer the home currency (AED) amount from the Dummy Bank account to the EUR account. Here's how:

 

  1. Go to the + New button.
  2. Select Transfer.
  3. Under the Transfer Funds From column, select the Dummy Bank from the drop-down arrow.
  4. Under Transfer Funds To, select EUR Bank from the drop-down arrow.
  5. Under the Currency column, select AED from the drop-down arrow.
  6. Under the Transfer amount column, type in the home currency (AED) amount you've noted above.
  7. Under the Exchange rate, the exchange rate will automatically appear. You can manually change the rate.

 

You can read this article for another example and more details: Receiving and making payment for a foreign invoice/ bill with a foreign currency.

 

Also, you may want to check out this article as your reference in case you need to learn more about the Multicurrency feature in QBO: About Multicurrency.

 

Let me know if you have other multicurrency concerns or questions about managing sales and income transactions in QBO. I'll gladly help. Take care, and I wish you continued success, @Mohamed Hani. 

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