I have changed a sum of GBP for USD - the bank took pounds from our Sterling bank account and put the dollars in the USD bank account.............the exchange rate they gave me was quoted to 4 decimal digits in the "normal" fashion (ie £1 = $1.nnnn). Using the inverse rate (as Quickbooks does) gives me too many digits to enter into a transaction and the amount at one end is incorrect. Since this is never going to reconcile with the bank statement, how do I account for the few pennies, or cents, difference? I cannot put another line on a transfer transaction and write it off to exchange differences.
This happens quite often in exchange transactions and credit card purchases - I make a lot of currency deals.
I’d be happy to share a way on how to account for these differences, Flyingfemme.
Since you’re unable to enter this amount when transferring, you create a journal entry instead. This transaction will allow you to enter two lines. The first line is for the account where the funds are coming from (Debit). The second will be the account where you’ll be depositing the fund (Credit).
You might want to enter a 1 is to 1 exchange rate for JE to record the exact amount difference. I’d also recommend consulting an accountant to make sure everything will be recorded properly.
Continue to drop your questions here if you need additional help.
Thanks for the suggestion but it doesn't work. I am changing GBP into USD (GBP is my home currency) and the exchange rate from the bank was £1 = $1.3151. The inverse of that is 0.7603984 and QB cuts off the last digit before it does the calculation. I end up 33 cents out on the USD account.
This drives me nuts because QB is not following "normal" practice for exchange and I don't know how to make the bank accounts reconcile with the next statement.
Thanks for getting back to us, Flyingfemme.
The steps provided by my colleagues is correct, however there's one more thing you'll need to do. When reconciling, you'll have to select the amount being transferred and the journal entry. This way, it will match the transactions on the bank and on QuickBooks.
Here are screenshot as an example:
Here's an article to guide you with reconciling: Reconcile an account.
The QuickBooks Community team is always to help you.
I can easily select two transactions that total the correct amount. That is not the same as getting the correct amount in the first place...........the fact remains that QB does exchange rates backwards to the rest of us. And we get incorrect numbers.
The end result looks like somebody is cooking the books and there are twice as many transactions as we should have.
Real world exchanges are the fact....fiddling the numbers is not a good look for bookkeeping.
Hello there, Flyingfemme.
The steps given by my colleagues are a workaround on how we handle multi-currencies. I personally sent a feedback to our engineers with regards so they can apply this suggestion to QuickBooks future updates.
Always know the Community is around if you need more help.
I too am encountering the same difficulty, receiving payments in GBP converted to USD which I cannot match with the limited number of significant digits allowed in the exchange rate. Is there any progress toward resolving this?
Welcome to the Community, arnolddf.
We consider that this is a valuable add-on feature and could help us improve customer experience. I'll personally send this suggestion to our developers so they might consider adding them when enhancing the product in their future updates.
In the meantime, you'll want to follow the recommended workaround mention in handling multi-currencies in QuickBooks Online.
Here are recommended articles that provide the steps in creating an adjustment entry and overview on how to fix reconciliation differences:
I'll be around if you need anything else.
Hi, is there an update on this? My QB desktop just did the online upgrades but there are still insufficent decimal places in the exchange rate field. Seems a pretty simple thing to fix. Do you know when it will be fixed to have more decimal places?
Hello there, pw-arvio.
We don't have a specific time-frame yet on when this feature be available. We can check the What's New feature in QuickBooks Desktop to keep posted for updates. To locate it, just click the Help menu and choose New Features. Then, select What's New.
We'll keep you notified once this is available. Take care!