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PreciousMM
Level 1

Foreign currency refund application

I made a customer invoice in usd , they paid us in usd but we ended up refunding them and the refund was done in eur equivalent.My issue now is how do i make the refund receipt as the system keeps giving me an error message **The currency of the account must either match the transaction currency or be your home currency** 

Please  help...

Solved
Best answer 4 weeks ago

Accepted Solutions
IrizA
QuickBooks Team

Foreign currency refund application

I can walk you through on how you can resolve this matter, PreciousMM.


The error you've encountered means that your customer and the bank account you're choosing to allocate your transactions have different currencies. To fix this, we can create a dummy bank account for your EUR and USD currencies in your Chart of Accounts (COA). Afterwards, create a refund receipt then choose the created bank account, and then create a transfer transaction in which we will convert the entry that contains EUR currency into USD.

 

Step 1: Create a Dummy Bank Account for EUR and USD

 

  1. Go to the Transactions menu, then choose Chart of Accounts.
  2. Click the New button, then fill out the Account name field.
  3. From the Account type dropdown and Detail type dropdown, select according to your preferences. 
  4. Fill out other necessary information.
  5. From the Currency dropdown, click EUR or USD. 
  6. Once done, click Save.

 

Step 2: Record a customer refund in QuickBooks Online (QBO).

While creating this transaction, ensure to choose the created account. 

 

Step 3: Transfer the amount to the corresponding account

 

  1. Go to the +New, click Transfer option. 
  2. Click the Transfer Funds From dropdown, choose account where you transaction is located. 
  3. Select the Transfer Funds To dropdown, choose where you want to put your account. 
  4. Choose a currency from the Currency dropdown.
  5. Enter your Transfer Amount in the given field.

 

Furthermore, you can visit this article to learn more about exchange rate: Enter and use your own exchange rates in QuickBooks Online

 

Please let me know if you have additional questions regarding currency, PreciousMM. 

View solution in original post

5 REPLIES 5
ChristineJoieR
QuickBooks Team

Foreign currency refund application

Thanks for visiting us today, PreciousMM. I am here to provide you with details and help resolve the error message you encountered while processing a refund in QuickBooks Online. Rest assured that we will work together to find a solution and ensure that you can navigate the system with ease.

 

The error message appears when the bank associated with the Refund receipt in QuickBooks doesn't match your home currency. To see your home currency, go to the Account and Settings and click the Advance tab. Then, locate the Home Currency section.

 

See the illustration below:

14.png

 

Just like the illustration below, my home currency is USD. However, I made a refund in and get the money from a EURO account and the error appears on my end:

6.png

 

Thus, when processing a refund in QuickBooks Online, it’s essential to link the refund directly to your customer’s USD bank account under the Refund From section to ensure a smooth and successful transaction.

15.png

 

To resolve this issue, we can set up a bank account for your EUR and USD currencies in your Chart of Accounts (COA). Refer to this page for your guide: Add an account to your chart of accounts in QuickBooks Online. Then, create a refund and link this newly set up account.

 

I'm adding this article on frequently asked questions regarding home currency adjustments in QBO: Frequently asked questions about Home currency adjustments.

 

If you have any additional questions about how home currency adjustments operate in QuickBooks Online, please reply to this thread. Our team is committed to providing you with continuous support and assistance. We’re here to help get a clear understanding of the process.

PreciousMM
Level 1

Foreign currency refund application

Hi;

I read all the links you sent but none of them address my issue, since we already have a problem- how then do i resolve it? 

IrizA
QuickBooks Team

Foreign currency refund application

I can walk you through on how you can resolve this matter, PreciousMM.


The error you've encountered means that your customer and the bank account you're choosing to allocate your transactions have different currencies. To fix this, we can create a dummy bank account for your EUR and USD currencies in your Chart of Accounts (COA). Afterwards, create a refund receipt then choose the created bank account, and then create a transfer transaction in which we will convert the entry that contains EUR currency into USD.

 

Step 1: Create a Dummy Bank Account for EUR and USD

 

  1. Go to the Transactions menu, then choose Chart of Accounts.
  2. Click the New button, then fill out the Account name field.
  3. From the Account type dropdown and Detail type dropdown, select according to your preferences. 
  4. Fill out other necessary information.
  5. From the Currency dropdown, click EUR or USD. 
  6. Once done, click Save.

 

Step 2: Record a customer refund in QuickBooks Online (QBO).

While creating this transaction, ensure to choose the created account. 

 

Step 3: Transfer the amount to the corresponding account

 

  1. Go to the +New, click Transfer option. 
  2. Click the Transfer Funds From dropdown, choose account where you transaction is located. 
  3. Select the Transfer Funds To dropdown, choose where you want to put your account. 
  4. Choose a currency from the Currency dropdown.
  5. Enter your Transfer Amount in the given field.

 

Furthermore, you can visit this article to learn more about exchange rate: Enter and use your own exchange rates in QuickBooks Online

 

Please let me know if you have additional questions regarding currency, PreciousMM. 

PreciousMM
Level 1

Foreign currency refund application

Thank you, this worked perfectly.

CharleneMaeF
QuickBooks Team

Foreign currency refund application

I am pleased to hear that my colleague successfully assisted you in resolving the refund error message you encountered, PreciousMM. 

 

I also collected these resources that you can use for guidance in categorising your bank transactions in QuickBooks Online:

 

 

Additionally, you can visit our One Intuit Help Hub page by clicking this link: https://intuit.me/OHH. It's designed to provide personalised support based on your QuickBooks needs. This brief video guide will help you navigate the platform and address your questions or concerns: https://intuit.me/OHHvideo.

 

Thank you for your valuable feedback. It’s rewarding to hear that our efforts made a difference for you. Let me know if you have further questions about creating a refund in QuickBooks. We’re always here to help.

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