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userahmedbuhassan56
July 8, 2021
Question

Invoice and payment different currency

  • July 8, 2021
  • 2 replies
  • 0 views

Hi,

 

I have received and invoice for GBP at which I paid from my CAD account, my main currency in QB is USD and I have separate USD account.

Currently I cannot record it in GBP because QB will not allow recording payment in currency different than invoice. If I attempt to go with invoice currency, I get this error "Payment Account must be in your home currency or the currency of the transactions you are trying to complete."

 

 

 

2 replies

Fiat Lux - ASIA
Fiat Lux - ASIA
July 8, 2021

Utilize a clearing account as a workaround

https://quickbooks.intuit.com/learn-support/en-ca/accounting/set-up-a-clearing-account/01/261363#M177

 

As an additional option, utilize this app to deal with multi currency transactions.

https://veem.grsm.io/veems

 

T
Tammy_H
July 8, 2021

Hi userahmedbuhassan56, 

 

It sounds like you're making good use of the multi-currency feature in your QuickBooks Online account. This feature makes using different currencies easier by calculating the exchange for you. It does have limitations. Where it calculates based on your home currency, it's unable to calculate multiple currencies within a single transaction. Don't worry. I can provide you with the options available to deal with more than one foreign currency.

 

As Fiat Lux mentions, a workaround would be to pay from a clearing/wash account and transfer from the account you used. Here are a couple of articles that explain how to enter these types of transactions using clearing accounts, journal entries or customers created in different currencies:

After reviewing the articles, you can decide which will work the best for you and your business. In the case that you have questions, you can reach back out. I'm here to help. Have a magnificent day!

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userahmedbuhassan56Author
July 10, 2021

Thanks Tammy_H for your reply,

 

I went through links provided and created my Clearing account as provided.

However, it does not mention the steps of recording the transaction. Could you please give journal entries to record such invoice and payment including currency for each.

 

Thanks again...

L
LauraAB
July 13, 2021

Hello again, userahmedbuhassan56.

 

It's awesome that you were able to set up the clearing account to help you with recording these kinds of entries in your books. In the Multi-Currency: Journal Entry Error Message article that my colleague shared, Option 3 goes over how to work with this kind of account, including how to use it in a journal entry. If you're feeling unsure still, I recommend speaking with an accountant to learn the best way to use the clearing account and how to set up your journal entry.

 

QuickBooks can help when it comes to working with an accountant. Using the My Accountant tab, you can invite an accountant you're already working with to be a user in your books so they can work on the transactions directly. Or that same tab also provides you with the Find a pro to help button, which connects you to our directory of QuickBooks-certified accountants near you. 

 

I hope this helps you moving forward!

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