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T
telgammal-imasa-
April 18, 2021
Question

How can I match the record of a transfer between two bank accounts of different currency? The exchange rate rounds off the amount and causes a difference of a few cents.

  • April 18, 2021
  • 1 reply
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1 reply

MichelleBh
MichelleBh
April 19, 2021

Hi there, @telgammal-imasa-.

 

It's my pleasure to help you match your different currency between two bank accounts in QuickBooks Online (QBO). 

 

You'll need no create a clearing account with your other currency. This way, you can transfer and match your different currencies in QBO. Also, the few cents difference will resolve too. 

 

Here's how: 

 

  1. Choose Accounting and select Chart of Accounts.
  2. Click on New.
  3. Pick Bank under the Account Type drop-down.
  4. Select the Detail Type.
  5. Enter Clearing Account on the Name field.
  6. Choose your home currency under the Currency drop-down.
  7. Tap Save and Close.

 

 

After that, you will have to create a bank transfer: 

 

  1. Go to the + New on the left side. 
  2. Choose Transfer under Other. 
  3. Select the bank account that the money is coming in the Transfer Funds From box.
  4. Choose the bank account that the money is going to in the Transfer Funds To. 
  5.  Enter the Transfer Amount and other necessary information.
  6. Tap Save and close.

 

If this is an imported transaction, you can select the Record transfer button in the Banking tab. You may refer to this article for the complete steps: Transfer funds between accounts.

 

 

Once done you can review all the recorded transfers in your Chart of Accounts. 

 

Feel free to read these articles for more information about multiple currencies. 

 

 

Let me know if you have any other questions about transferring funds to a different currency. I'm always here to help. Have a good one!

T
telgammal-imasa-Author
April 19, 2021

Hi @MichelleBh 


Thank you for the response, but can you please explain how transferring the funds using a clearing account is different than simply transferring between the two bank accounts. Let’s say I received AED 10 in my AED account when I transferred it to my USD account the bank converted it to $2.71. Meanwhile in QBO because of a rounding issue the transfer feature converts it to $2.70. If I used a clearing account, would I transfer $2.70 from the AED account to the clearing account, then transfer $2.71 from the clearing account to the USD account? Wouldn’t this would leave a -$0.01 balance in the clearing account? This balance would continue to build up with each transfer and reflect in the balance sheet. Or is there an additional step to balance the clearing account?

IamjuViel
IamjuViel
April 19, 2021

Let me share an additional information, @telgammal-imasa-.

 

When enabling the multi-currency, you'd want to consider in which bank account the transactions where recorded. Also, the the system automatically creates an Exchange Gain or Loss account. 

 

 

Once your US client pays the invoice you've sent, the difference of the payment is recorded automatically under Exchange Gain or Loss account. 

 

 

On the other hand, if your actual customer payments are deposited directly to your AED bank account, you can directly match your actual transactions and the downloaded ones. Here's how:

  1. Go to the Banking menu.
  2. Choose the Banking tab.
  3. Locate your AED bank account.
  4. Search for your customer's payments from the For Review tab.
  5. Double-click on the transaction to expand it.
  6. Select the Find Match option.
  7. From the Match Transactions page, mark the Foreign currency button.
  8. Set the Date Range of the transactions.
  9. Choose the manually added transaction that matches with your downloaded bank transaction.
  10. Click Save. 

You can use these articles in managing your multi-currency transactions:

Drop your comments below if you have other questions or concerns about navigating around QuickBooks Online. I'm always here to help.

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