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J
Jemira
August 24, 2024
Question

Our bank pays a single invoice with partial payments from two separate accounts

  • August 24, 2024
  • 1 reply
  • 0 views

Hi All

 

Our bank account (Wise) has both GBP and USD sub-accounts which we use for paying foreign suppliers in USD. The GBP account holds our funds, while the USD account is usually empty but occasionally has small amounts due to Wise offering cashback on certain transactions. In QuickBooks, these are set up as separate bank accounts.

 

When we pay for something in USD, Wise first uses any available funds in the USD account, then covers the remainder by converting direct from the GBP account, resulting in the invoice being paid from two accounts.

 

For example, a $99 monthly subscription might be partially paid with $2 of cashback from the USD account, with the remaining $97 taken from the GBP account as a currency conversion. In QuickBooks, this might appear as a £80 transaction in the GBP account ($97 x exchange rate to GBP) and a $2 transaction in the USD account.

 

How can I accurately record this transaction in QuickBooks, given the partial payments from two accounts in different currencies? Is there a way to split an invoice across two accounts?

 

Thanks

Rachel

1 reply

F
FaithA
August 24, 2024

Hello Jemira, I’ve got some information on handling transactions from multi-currency accounts.

 

In recording partial payments from two accounts in different currencies in QuickBooks Online, you can record a bill payment transaction based on the converted amount from the USD value. For example, if 97 USD were removed from your GBP account, create a bill payment of the amount converted to GBP. This is to record the money taken from your GBP sub-account. Here's how to record the bill:

 

  1. Select + New. Select Bill.
  2. From the Supplier ▼ dropdown, select a supplier.
  3. Enter the Bill date, Due date, and Bill no. as they're recorded on the bill.
  4. Enter the bill details in the Category details section. From the Category dropdown, select the expense account you use to track expense transactions. Then enter a description. 
  5. In the Amount column, enter the amount converted into GBP.

 

For accuracy in recording the other amount from the USD sub-account, it is advisable to contact your accountant to record this transaction into QBO properly.

 

Additionally, I'll share this article on uploading your receipts and bills from suppliers to QBO: Upload your receipts and bills to QuickBooks Online.

 

I'll keep this thread pinned if you have more queries about recording your transactions with different currencies. Keep us posted by replying in the comments. The Community will be swift to assist you. Take care.

    J
    JemiraAuthor
    August 25, 2024

    Thanks Faith, I'll have a chat with our accountant next week about how to deal with the USD account and report back.

     

    Rachel

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