I would like to know how to record exchange from GBP to NIS account?

userilanat · ‎February 15, 2021

Jovychris_A · ‎February 15, 2021

I'll help you record an exchange from GBP to a NIS account, @userilanat.

If you haven't created the two foreign accounts, you'll need to set them up first in QuickBooks Online.

Click Accounting.
Click New at the upper-right corner.
Enter the account information and make sure to choose GBP as the currency.
Click Save and Close.

Once done, you can follow the same steps above to set up the NIS account. Make sure to choose the Israeli Shekel as the currency.

Since we're unable to transfer or exchange directly from GBP to NIS account, we can set up a clearing account and use this to transfer the funds with different currencies. Ensure that your home currency is picked so that we can transfer the funds successfully.

Please follow these steps:

On the left panel, hover your mouse on Accounting, and choose Chart of Accounts.
Click on New.
Select Bank under the Account Type drop-down.
Select the Detail Type.
Enter Clearing Account on the Name field.
Choose your home currency under the Currency drop-down.
Click on Save and Close.

Once done, you'll need to transfer funds from the GBP account to the clearing account you created. Then from the clearing account to the NIS account. Take note of the foreign currency amounts to ensure that the value is converted correctly.

You may need to consult an accountant to help calculate and account the currency rates.

Please let me know if you have any other questions about transferring funds, don't hesitate to tag me. I'll be here to help. Take care!

View solution in original post

Jovychris_A · ‎February 15, 2021

I'll help you record an exchange from GBP to a NIS account, @userilanat.

If you haven't created the two foreign accounts, you'll need to set them up first in QuickBooks Online.

Click Accounting.
Click New at the upper-right corner.
Enter the account information and make sure to choose GBP as the currency.
Click Save and Close.

Once done, you can follow the same steps above to set up the NIS account. Make sure to choose the Israeli Shekel as the currency.

Since we're unable to transfer or exchange directly from GBP to NIS account, we can set up a clearing account and use this to transfer the funds with different currencies. Ensure that your home currency is picked so that we can transfer the funds successfully.

Please follow these steps:

On the left panel, hover your mouse on Accounting, and choose Chart of Accounts.
Click on New.
Select Bank under the Account Type drop-down.
Select the Detail Type.
Enter Clearing Account on the Name field.
Choose your home currency under the Currency drop-down.
Click on Save and Close.

Once done, you'll need to transfer funds from the GBP account to the clearing account you created. Then from the clearing account to the NIS account. Take note of the foreign currency amounts to ensure that the value is converted correctly.

You may need to consult an accountant to help calculate and account the currency rates.

Please let me know if you have any other questions about transferring funds, don't hesitate to tag me. I'll be here to help. Take care!

userilanat · ‎February 15, 2021

Thanks a lot!
BTW, is there any way I can manually enter exchange rate as sometimes bank rate is different from QB rate?

Maybelle_S · ‎February 15, 2021

Thanks for coming back to us, @userilanat.

Yes, we can manually enter it if you want to use your rate for a foreign currency transaction. You can change the rate when you enter the transaction.

Here's how:

Go to the +New button.
Choose the transaction you want to enter.
Enter the rate in the exchange rate field.
Select Use for this transaction only. However, if you wish to use the same rate as the other transactions, choose Use for all new transactions in (currency) for (date).
Click OK.
Complete the transaction details, then select Save.

If you want to use your rate for multiple foreign currency transactions, you can update the rate in your currencies list. Here's the link: Use your currency rate for multiple foreign currency transactions.

For more details about multi-currencies, feel free to visit these articles:

Keep me posted if there's anything else that you need help with. Take care and have a great day!

Fiat Lux - ASIA · ‎February 15, 2021

@userilanat

Explore these apps to accept payment in NIS/ILS with a better rate.

https://veem.grsm.io/veems

https://transferwise.prf.hn/l/75dqNgB

userilanat · ‎February 16, 2021

Thank you, but I still need help : I would like to enter a new journal entry (for exchange) . Where do I find the exchange rate field?

Candice C · ‎February 16, 2021

Good morning, @userilanat.

Thanks for reaching back out to the Community and adding some clarification about recording a journal entry for the exchange. Allow me to provide you with some information about this subject.

I can see how beneficial this would be for your business. However, there isn't an exchange rate field on a journal entry in QuickBooks Online (QBO). When you are creating a journal entry that includes accounts receivable (A/R) or accounts payable (A/P), the currency of the transaction, the A/R and A/P accounts, and the customers/vendors must all match.

I recommend consulting with your accountant to be sure of how to enter these details. They'll be able to give you the best accounting advice for your business. If you don't have an accountant, don't sweat it. Here's a link to help find one near you.

In addition, here's a guide that can help you in the future: Mixing currencies in journal entries.

I want to make sure that you're able to get back on track. It's my priority that all of your concerns are addressed. If you have any other questions, don't hesitate to ask. I'm always here to lend a helping hand. Have a great day!

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I would like to know how to record exchange from GBP to NIS account?