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C
chat@getmysiesta
November 5, 2024
Question

During an overseas business trip, I made personal payments in the local currency for the business. What 'payment account' should I create to record this manual expense?

  • November 5, 2024
  • 1 reply
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My business is based in Australia. When I had the business trip in China, I have made some personal payments in CNY dollars (cash) to pay for the business, what 'payment account' should I create to record this manual expense? Thank you.

1 reply

I
IntuitSheila
November 5, 2024

Thanks for posting in the Community.

 

You can add the foreign supplier you've paid the expense in QuickBooks Online and select the bank account you've taken out the funds for the purchase. Here's how to add a foreign supplier.

 

  1. Click on the Expenses tab.
  2. Click on Supplier tab and choose New Supplier.
  3. Select the Chinese currency in the Currency field.
  4. Enter the name of the supplier/store.
  5. Click on Save.

Then, create a new invoice and select the foreign supplier created. And on the payment account choose the bank account used where you've taken out the cash to purchase the expense. We'll see the converted foreign currency amount and in your home currency figures. Save the transaction when ready.

 

For reference check this link to learn more about Multicurrency FAQ.

 

Drop by again in the Community if you have further questions recording your transactions.

C
chat@getmysiestaAuthor
November 5, 2024

Thanks your reply, Sheila.

 

However, this is a personal bank account in China that I took out money for business and that China account cannot be linked up with Quickbooks. 

What payment account should I create for this case?

Thanks again.

 

I
IntuitSheila
November 5, 2024

Thanks for getting back to us.

 

If this is a business expense paid for with personal funds is we can record a journal entry instead. Follow these steps to help record the expense.

 

  1. Click on the + New icon and choose Journal Entry.
  2. Select a currency and transaction date.
  3. On the first line item, select the expense account for the purchase (e.g. Travel expense).
  4. Enter the purchase amount in the Debits column.
  5. On the second line item, select partner's or owner's equity account.
  6. Enter the same purchase amount in the Credits column.
  7. Click on Save and Close.

If it's time for you to get reimbursed for the expense, record it as an expense transaction and allocate it using the partner's or owner's equity account.

 

  1. Select + New.
  2. Select Expense.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the Category column, select Partner's equity or Owner's equity.
  5. Enter the amount of the reimbursement.
  6. Select Save and close.

That should do it. Post again in the Community if you have other questions.

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