Breaking down a bank GBP deposit (was actually a transfer from a personal account,)

Bucksey85 · ‎October 30, 2022

So relatively new to QB.
Our company has finally managed to open up a business USD and EURO account, which we have added to QB. Previously we had to use our personal one.
We made a large transaction to save on transfer fees from our personal account that is where previous clients paid the invoices.
So in the Business GBP bank account I have a income(should really be a transfer) of 300GBP, I need that to link with 2 invoices, say 1 for 50USD and 1 for 125USD with the remaining GBP to just go into our Directors loan account(GBP)
does any one know how this can be done. I've looked at doing a Journal and also seen if I can split the 300 up at the review stage with no luck.
Ps we know we have screwed this up a tad but hoping you bright minded people can help us.
Please any advise would be helpful.
Many Thanks
Bucksey85

GeorgiaC · ‎November 03, 2022

Hi Bucksey85, it's not possible to match multicurrency transactions directly from the bank feed. If you have already created the USD customer invoices in QuickBooks, you can record the payment manually (by selecting receive payment on the invoice) - under the 'deposit to' click '+ Add new' and create a contra bank account in GBP (set the account type as cash at bank and in hand, and the detail type to cash on hand and then rename this).

After you have recorded the payments on all invoices included in the deposit, create a transfer (+ new > transfer) - here, select the contra bank account under 'transfer funds from', and the undeposited funds GBP account under 'transfer funds to', and enter the transfer amount.

To show this hitting your GBP business bank, select + new > bank deposit - here, select the bank account (under account) and the date that this was received. Under 'select the payments included in this deposit' tick the transfer, and then scroll to 'add funds to this deposit'. Set the 'amounts are' drop-down field to 'No VAT' and then enter the directors loan account under 'category' and the remaining amount to post to this in the amount field.

The total of the deposit should match the payment received in your bank - after saving, you'll then see a match to the payment in your QuickBooks bank feed. :)

View solution in original post

Ashleigh1 · ‎November 02, 2022

Hello Bucksey85,

Welcome to the Community page,

We would advise that you speak to a trained and qualified accountant on how to record this in your Quickbooks account.

Bucksey85 · ‎November 03, 2022

Hi Ashleigh1,

That sounds like you don't know how to use your own software to me,
I have actually spoken to my accountant and I fear for them to solve this issue will cost me an arm and a leg. As they will most likely be asking your team the same questions.
Is your software capable of solving this issue? or you saying I have to work on another solution?

Thanks

GeorgiaC · ‎November 03, 2022

Hi Bucksey85, it's not possible to match multicurrency transactions directly from the bank feed. If you have already created the USD customer invoices in QuickBooks, you can record the payment manually (by selecting receive payment on the invoice) - under the 'deposit to' click '+ Add new' and create a contra bank account in GBP (set the account type as cash at bank and in hand, and the detail type to cash on hand and then rename this).

After you have recorded the payments on all invoices included in the deposit, create a transfer (+ new > transfer) - here, select the contra bank account under 'transfer funds from', and the undeposited funds GBP account under 'transfer funds to', and enter the transfer amount.

To show this hitting your GBP business bank, select + new > bank deposit - here, select the bank account (under account) and the date that this was received. Under 'select the payments included in this deposit' tick the transfer, and then scroll to 'add funds to this deposit'. Set the 'amounts are' drop-down field to 'No VAT' and then enter the directors loan account under 'category' and the remaining amount to post to this in the amount field.

The total of the deposit should match the payment received in your bank - after saving, you'll then see a match to the payment in your QuickBooks bank feed. :)

paul72 · ‎November 03, 2022

@Bucksey85 wrote:
Ps we know we have screwed this up a tad but hoping you bright minded people can help us.

... for free?!

The easiest way would be to forget about the Bank Account Linking/Matching thing - it seems to make anything but the simplest transaction way more complicated than it needs to be (especially if you don't know what you're doing in the first place).

I've said it many times before - no matter what the adverts say, 20 something quid a month is not a substitute for a book-keeper or an accountant (& no, I'm neither of those trying to sell the merits!).

Try entering as a Bank Deposit split across three lines to make it obvious what you've done.

Total Deposit is £300

You don't mention whether you have Multi-Currency switched on or not. Personally, I prefer to do the conversions in my head & have all accounts in GBP - so I don't actually know whether QBO will let you split USD into a GBP account. If not, you may have to enter as separate deposits.

Splits need to be entered against the Customer Name & Accounts Receivable to ensure they can be marked against the Invoices later.

Hope this helps.

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Breaking down a bank GBP deposit (was actually a transfer from a personal account,)