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Flyingfemme
Level 2

Exchanging currencies - not enough digits!

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.

Solved
Best answer May 23, 2022

Accepted Solutions
Carneil_C
QuickBooks Team

Exchanging currencies - not enough digits!

Thanks for joining the thread, @Cimitri. I’ll address your concern about this feature in QuickBooks Desktop.

 

I can see how this specific feature is beneficial to you and to your business. However, this feature for handling multi-currencies is unavailable.

 

In the meantime, I’d suggest following the steps given by my colleague @Catherine_B above on how to send this suggestion to our Product Development Team. We value your suggestions. This way, our developers can determine what features to add to QBDT's future enhancements.

 

Here are some handy articles that can be beneficial along the way: Reconcile an account in QuickBooks Desktop.

 

I'll be around if you need further assistance in QBDT. I'm very eager to help. Take care!

View solution in original post

17 REPLIES 17
MikiD
QuickBooks Team

Exchanging currencies - not enough digits!

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). 

1.PNG
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. 
 

Flyingfemme
Level 2

Exchanging currencies - not enough digits!

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.

Adrian_A
Moderator

Exchanging currencies - not enough digits!

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.

Flyingfemme
Level 2

Exchanging currencies - not enough digits!

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.

Catherine_B
QuickBooks Team

Exchanging currencies - not enough digits!

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. 

arnolddf
Level 1

Exchanging currencies - not enough digits!

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?

GlinetteC
Moderator

Exchanging currencies - not enough digits!

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.

Flyingfemme
Level 2

Exchanging currencies - not enough digits!

Thanks, Glinette. I like the “Undeposited Funds” solution; that looks neat and tidy in the bank accounts. I’ll give it a try.

pw-arvio
Level 1

Exchanging currencies - not enough digits!

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?

Catherine_B
QuickBooks Team

Exchanging currencies - not enough digits!

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!

Cimitri
Level 1

Exchanging currencies - not enough digits!

Has this been resolved? This is one of the most confusing work arounds I've ever seen for what should be an easy fix.

 

 

pw-arvio
Level 1

Exchanging currencies - not enough digits!

it still does not have enough decimil places May 2022. Please Intuit, fix this its a real nuisance and an unecessary pain to work around this each time. 

Carneil_C
QuickBooks Team

Exchanging currencies - not enough digits!

Thanks for joining the thread, @Cimitri. I’ll address your concern about this feature in QuickBooks Desktop.

 

I can see how this specific feature is beneficial to you and to your business. However, this feature for handling multi-currencies is unavailable.

 

In the meantime, I’d suggest following the steps given by my colleague @Catherine_B above on how to send this suggestion to our Product Development Team. We value your suggestions. This way, our developers can determine what features to add to QBDT's future enhancements.

 

Here are some handy articles that can be beneficial along the way: Reconcile an account in QuickBooks Desktop.

 

I'll be around if you need further assistance in QBDT. I'm very eager to help. Take care!

macacox
Level 2

Exchanging currencies - not enough digits!

after 4 years, the same problem... the thing is us, as users, need to QB make an effor and solve this issue, just adding more digits to the Exchange rate... 5 is not enough...

Ashleigh1
QuickBooks Team

Exchanging currencies - not enough digits!

Hello Macacox, thanks for posting on this thread, we have passed on what you have said to our development team. 

Michael Corfman
Level 1

Exchanging currencies - not enough digits!

I don't understand why those from Quickbooks who have chimed in here have referred to the request to increase the number of digits permitted in specifying a currency exchange rate as a feature request. In fact, the world has evolved so that currency exchanges are commonly done with more than five digits of precision.

 

The fact that Quickbooks does not support the same precision that real-world currency exchanges have supported for quite a while now is a product defect, plain and simple.

 

I am a software engineer myself, and I think there is a fundamental communication problem if this issue is being characterized as a feature request to the development staff, rather than as a product defect.

 

In fact, the issue with old and established fiat currencies like GBP and USD is the tip of a much larger issue where Quickbooks is simply failing to keep up with more modern currency conversion requirements. Try handling BTC as a currency, when only two decimal digits are supported as a currency precision. Or, how about modern brokerages, such as Kraken, where balances in a USD account are kept to greater precision that pennies.

 

These are examples where there is an opportunity for Quickbooks to show leadership and handle problems that are going to become more severe problems for larger and larger portions of its customer base as time goes on.

Flyingfemme
Level 2

Exchanging currencies - not enough digits!

Irrelevant now that QB is canning the Desktop software next week!

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