Record payments for foreign invoices or bills in different currencies in QuickBooks

QuickBooks Online lets you create invoices and bills in foreign currencies. However, when recording payments, you can only use:

• Your home currency bank account, or
• A bank account with the same currency as the invoice or bill.

To work around situations where a customer or supplier pays you in a different foreign currency, you’ll need to use a temporary (dummy) bank account.

Before you begin

• Make sure the Multicurrency feature is turned on in QuickBooks Online.
• Know your home currency.

Example

Your home currency is SGD.

• You issue an invoice in USD for 1,000.
• The customer pays you in EUR instead of USD.

Here’s how to record this in QuickBooks.

Step 1: Set up a dummy bank account

1. Follow this link to complete the steps in product
2. Select New account.
3. For Account type, select Cash at bank in hand.
4. For Detail type, select Cash on hand.
5. Name it Dummy Bank.
6. Make sure the currency is set to your home currency (SGD in this example).
7. Save.

Step 2: Record the payment

1. Select + New or + Create, and select Receive payment.
2. In the Deposit to field, select Dummy Bank.
3. Save the transaction.
4. Note the home currency amount shown.
   • Example: USD 1,000 converts to SGD 1,300.

Step 3: Transfer the money

1. Select + New or + Create, then Transfer.
2. In Transfer funds from, select Dummy Bank.
3. In Transfer funds to, select your EUR bank account.
4. Set the Currency to SGD.
5. Enter the transfer amount (SGD 1,300).
6. Review or update the exchange rate.
   • Example: To match EUR 800 received, the exchange rate is 1.625 (1,300 ÷ 800).