We regularly send money from Singapore (SGD) to our account in Europe (Euro) using a third party currency exchange and transfer service.
step 1 - we agree a rate (EUR/SGD 1.6) with Currency Fair in Singapore and transfer S$8,000 to their account in Singapore.
step 2 - they credit our account in Ireland in Euro 5,000.
step 1 is the debit an expense or transfer or something else (suspense account). Can you suggest the entries so we can do this consistently?
You may utilize a clearing account. Visit the following reference whether you are using QBO or QBD
If you frequently convert your fund in multi currencies, I would recommend opening a business account at TW. You may have a SGD account and an Euro account to convert your fund easily, then utilize the bank feeds to your QBO account.
for the benefit of others, I set up a 'Currency Fair Transfer Account' and make transfers between SGD bank account to this account and then from this account to the Euro bank account.
Hello again, @ConorIB.
You can use the Bank transfer feature so you can transfer directly from bank to bank in QuickBooks Online (QBO). Then, set the exchange rate.
The exchange rate will determine how much will transfer to the other currency. So the exchange gain or loss will automatically be calculated if needed.
To create a bank transfer, here's what you'll need to do:
For more details about this process, see this article: Transfer funds between bank accounts.
Feel free to stay in touch with me if there’s anything else you need. Have a great day.