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JB0020
August 21, 2022
Question

Supplier Payments - multi-currency

  • August 21, 2022
  • 1 reply
  • 0 views

Client has supplier who invoices in EUR.  Client has paid via the US$ bank account.

Automatic bank feed brings up US$ payment in US$ account

How can I match this payment to the original EUR invoice?

 

I have read suggestions to delete the original EUR invoice and create a new supplier profile in US$ and "create" a US$ equivalent invoice, but I don't know in advance which bank account client will make payments from, so this could mean duplicating work.  This can happen quite frequently as the account used will depend on which account has funds available, and I don't want to be addition invoices twice.  


Does anyone have a simple solution?

Many thanks

1 reply

DivinaMercy_N
DivinaMercy_N
August 21, 2022

Hello there, @JB0020. I'm here to share some information about managing multicurrency transactions in QuickBooks Online (QBO). 

 

I appreciate you sharing details of your concern. Before proceeding to the steps in fixing this, let me first discuss details about multicurrency.

 

When entering a payment made for a different currency, you'll only be able to use the bank account in your home currency or the bank whose currency corresponds to the bill. 

 

That said, to track bill payments for a foreign supplier in QBO, you'll have to create a dummy bank account to make a payment. Then, move the money from the foreign bank account to that account. Follow along below to get this done right away.

 

Create a dummy bank account:

 

  1. In your QBO company, select the Gear icon.
  2. Then, select Chart of Account and click New
  3. Select the Account Type and the Detail Type. To ensure you choose the correct account, I recommend asking for guidance from your accountant. 
  4. Type Dummy Bank in the Name bar.
  5. Ensure that it is in the home currency before clicking the Save and close button. 

 

After that, use the dummy bank account to make payment for the foreign bill. 

 

Once done, transfer the amount from the dummy bank to the foreign bank account. Here's how:

 

  1. From your QBO account, click the + New button.
  2. Choose Transfer.
  3. From there, select Dummy Bank in the Transfer Funds From field.
  4. Next, pick the foreign bank account in the Transfer Funds To dropdown.
  5. Select the home currency.
  6. Then, enter the Transfer amount. 
  7. The exchange rate will automatically appear. You can also manually change it.

 

For reference, feel free to check this article: Receiving and making payment for a foreign invoice/ bill with a foreign currency. Please know that this is for ZA but the process is still applicable in the UK. 

 

I encourage you to post a reply below for any updates on how the steps go or if there's a follow-up about handling multicurrency transactions. Any details are appreciated. I'm just around the corner and willing to lend further assistance. Have a good one and take care. 

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