Record bank transactions

Hello there, Torleif67.

Yes, you can use the steps when recording customer payments by depositing the payment to Undeposited Funds and then create a Bank deposit transaction to add the bank charges. This way, you'll have the option to select the correct currency on the bank deposit page. By then, QuickBooks will automatically convert the amount in your invoice to the selected currency. For more details, you can use this reference for more details: Record and make bank deposits in QuickBooks Online.

If you have connected your bank account through online banking, you can use this article that will help you match and categorize bank downloaded transactions to avoid duplicate payments as well. 

Please let me know if you have other questions. Take care and have a great day!

Hello Catherine!

Thanks for your quick replay! And thank you for this valuable information so for. I got some more questions for you while we are at if you dont mind!

1. Invoice.

Should I make the invoice in PHP or in EUR? 

When I open Bank deposit it automatically choose my BDO Bank PHP, local currency. If I change this to Transferwise and EUR the transaction it not there anymore. You said that QuickBooks will automatically convert the amount in your invoice to the selected currency.

This is the confusing part for me so far. In Wave this where automatically converted into the local currency, did not matter what currency the invoice was made in. All transaction where in PHP directly, Wave downloaded and updated the currency on a daily basis.

So have I done this correctly, please check my invoice I have added here one time.

2. Bank Deposit.

When the money have been deposited to the bank I can match them. I have read about this also when you are doing a Bank Deposit. Is there anyway of also including the bank charges here? Example I get paid EUR 150 from my customer. But I only receive EUR 140 from Stripe. How and where will I record the EUR 10 bank charges? 

Can I do this when I do the Bank Deposit or should this be done somewhere else? Another things that confusing me right now. Of course I can Reconcile my bank account all the time to fix this. But there must be an easier way of doing this I think.

3. Bank Transfers.

Transferwise and BDO bank accounts are all our corporate bank accounts. If I would transfer money away from these account to my private accounts with Transferwise and BDO. How would I do this the simplest way? Transfer the money and use Owner's Equity and record it is my own salary? Or should this be done in a different way? 

Just an additional question. 

Thank you for your help, appreciate it very much and I hope to hear from you soon again. In the mean time I wills tudy your links you sent me.

-Torleif

Hello Cathrine!

Have I done this correctly when I have recorded this payment from him?

Or may you could help me me one time and show me step by step on how to make this in a correct Quickbooks way. It would help me alot so I get started on the right foot with Quickbooks.

-Jesper

Yes, you're on the right track, Jesper.

Also, please be reminded that In QuickBooks Online, the option to convert the currency in an invoice is currently unavailable. What we can do is to create a new customer profile with their specific currency. 

On the other hand, I've got a way to record the invoice and payment without bank fees, and then create a deposit from that payment to deduct the bank fees. Please check this out:

1. Go to New (+), then Receive Payments, then enter all the payment information.
2. Tick the checkbox next to the invoice you would like the payment to be applied to.
3. Select Undeposited funds as the deposit to the account.
4. Choose Save to record the transaction.
5. Go back to New (+), and then Bank Deposits. You should see the payment you entered in the Select Existing Payments section at the top.
6. Place a checkmark to select the payment you want to deposit.
7. From the Add funds to this deposit section, enter the amount of the bank service fee charged as a negative amount.
8. From the Account section, select the Expense account you usually use in tracking bank fees.
9. Verify that the deposit amount is correct.
10. Click on Save to record the transaction.

Also, read through this article that will guide you on how to properly handle bank transfer in QBO: Pay for personal expenses from a business credit card or bank account.

Please let me know if you have any additional concerns regarding bank transactions. I'll be right here to help you out.

Hello Cathrine!

Ok this I understand and I have also read about this today.

Still the confusing part is that the account where this comes from is Transferwise EUR account.

But when I do Receive Payment and Bank Deposit I am using the BDO account and local currency.

So just to make this clear. The invoice have to be made like this;

a. In PHP

b. In the Toal amount of the payment

c. So when I do the bank transfer I will then deduct the bank charges so it matches the bank, Transferwise EUR in the end of the day.

Is this what you are telling me?

Hello Cathrine!

I think this should be available in QuickBooks Online, the option to convert the currency in an invoice!

That would make life so much easier for all of us if it was. In Wave this was available like I said before.

Creating a customer profile with a different specific currency could also work. But then this have to been done each time a person pays us in a different currency than PHP only.

Which one of these two option would you recommend to use? Just to keep it simple and steady for my staff when they work with this. Option 2, creating a new customer profile in that person's currency seems to me to be the best option or not?

Hi there, Torleif67.

Let me join this thread so I can share more details on how to handle multi-currency transactions.

In QuickBooks Online, you can add a customer and assign a currency that the customer pays you with. That currency will be used when you create any transaction and we're unable to change it.

And yes, you can follow the steps shared by GlinetteC on how to record transaction fees, by adding them on the Add funds to this deposit section.

When you received a payment using a foreign currency and deposit it to your local bank, QuickBooks Online calculates unrealized gain or loss. This is the gain or loss due to changes in exchange rates and only realized after the transactions have been completed.

Please check these links for more details:

• Turn on and use multicurrency
• Frequently Asked Questions about Home Currency Adjustments

Leave a comment below again if you have more questions. Wishing you all the best!

Hello Alex!

Thank you do much for this. 

I will read your links and then I will get back to you about this again.

Nice that people are very helpful when a newbee needs it, cheers.

-Jesper

Hello Cathrine!

Quick question for you again!

If I where to start using PayTraQer and sue this app to sync my Stripe Payments. Should I use the  system you have explained to me above here still? Or are there any changes to this setup?

-Jesper

Hi Torleif67,

We have limited information about third-party apps. Based on the information we have, they offer sync with Stripe to capture transactions even in a multicurrency setting. However, with regards to mapping and other setups, I would recommend reaching out to their support.

If you have more concerns, feel free to reach back out. Have a good one!

Hello Jess!

Thats understandable!

Another question for you!

Currency conversions should be available in QuickBooks Online, the option to convert the currency in an invoice! That would make life so much easier for all of us if it was. In Wave this was available like I said before.

Creating a customer profile with a different specific currency could also work. But then this have to been done each time a person pays us in a different currency than PHP only.

Which one of these two option would you recommend to use? Just to keep it simple and steady for my staff when they work with this. Option 2, creating a new customer profile in that person's currency seems to me to be the best option or not?

Hello, Torleif67. 

Thank you for getting back to us here in Community. In QuickBooks, once you've turned on your multi-currency and set it up, you can't longer change it. Also, you can only assign one currency to each account or contact name, and you have to add a new account for each different currency that you will use in transactions.   

Please check these articles how multi-currency gives you the ability to record transactions in foreign currencies and to see different information about Home currency adjustments that can help you when using the Multi-currency feature in QBO: 

• Turn on and use multicurrency.  
• About Multicurrency.  
• Frequently Asked Questions about Home Currency Adjustments. 

Please leave a comment anytime if you have questions. I'm always here for you. Have a great day, and stay safe!