When receiving payment for an invoice, you can choose to use either your home currency or the currency specified in the invoice, @Sietske. I'll provide the details below.
For instance, if your home currency is Canadian dollars and the invoice is in British pounds, you can only receive the payment in either Canadian dollars or British pounds, but not in US dollars.
To manage a payment for an invoice in a different foreign currency, start by setting up a new dummy bank account in your local currency, which will help navigate the exchange between the two different foreign currencies. Here's how:
- Click the Gear icon on the upper right corner. Then, choose Chart of Accounts.
- Click on New.
- In the Account Type column, select Cash and cash equivalent. Under Detail Type column, choose Cash on hand. And in the Name column, enter Dummy Bank
- Ensure the currency is set to your local currency (SGD in this case) before saving and closing.
Proceed to record the foreign invoice payment.
In the Receive Payment module, set the Deposit To field to Dummy Bank
Before finalizing the transaction, check the amount in the local currency displayed at the bottom right.
Next, move the funds from the foreign bank account to the dummy bank account so you can accurately record the payment. While this guide is particularly for the Singapore region, the steps and guidelines are applicable to your region as well.
After completing the process, it’s essential to reconcile your accounts in QuickBooks Online. Given that you've received payment in different currency, reconciliation helps in comparing your records against your bank or credit card statements, ensuring accuracy and keeping your finances up-to-date.
Let me know if you have any concerns about recording and receiving payments in different currencies or if you need help with any QuickBooks-related issues. We're here to provide additional details. Stay safe!
