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hanw
Level 1

Dealing with currency purchases

Hi there!

 

I'm new to Quickbooks (as is my new boss!) so I'd love help with the below if possible....

 

I'm looking for help with how to deal with the purchase of foreign currency (using TorFX) and how to allocate the invoices which have been paid using the purchased currency.

 

As an example, the company will buys products from Austrailia and will buy currency when the rates are favourable. I will see the purchase on the bank statement on quickbooks (these are currently left unmatched) and when the invoice is recieved from the supplier the payment is made on the TorFX platform and therefore the invoice payment never shows on quickbooks.  The balance of the currency spend will almost always be higher than the actual invoice recived so there will be an outstanding balance.

 

My question is related to the the actual bank transactions and how do I think clear these from the statement.  I had wanted to move these a control account then I could manually enter the invoices recieved and match these against the payment and class a purchase (if that makes sense) but I don't see an option to do so. 

 

Thank you in advance for any help. 

 

 

3 REPLIES 3
Catherine_B
QuickBooks Team

Dealing with currency purchases

I can help you get things sorted out, hanw.

 

We’ll have to manually convert the amounts from the items you bought and you’ll sell for them to match your actual bank transactions. The item costs might differ every time you purchase them depending on the exchange rate.

 

We have the multi-currency option that we can use. This features is available in QuickBooks Online Essentials and Plus. It can save time since you don’t need to manually convert the amounts and you can easily match them.

 

If you opt to use it, let’s turn it on first. Here’s how:

  1. Go to the Gear icon and select Account and Settings.
  2. Click the Advanced menu and click the Currency section.
  3. Check the Multicurrency box to turn on.
  4. Read the conditions first before we click the I understand I can’t undo Multicurrency box.
  5. Then, click Save and then Done.

I’m also attaching these articles for your overview and how Multicurrency works

 

Let me know if there's anything else that you need help with. Thanks!

Fiat Lux - ASIA
Level 15

Dealing with currency purchases

@hanw 

If you are using QB Online, explore this payment service to deal with multi currency transaction. You may pay your vendor in GBP and they will get paid in AUD.

https://veem.grsm.io/veems

 

Hope it helps.

InspectorTom
Level 1

Dealing with currency purchases

How can I learn more before disclosing all my personal information?

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