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Torleif67
Level 1

Record bank transactions

1. I have added my bank account to Quickbooks. I have 6 different accounts from Transferwise, EUR, USD, GBR, SGD, AUD, NZD. 

 

2. Under my Stripe Payment account I have the same currencies recorded, EUR, USD, GBR, SGD, AUD, NZD. 

So EUR is default account if a currency is used that is not any of the following above here. Like my home currency is PHP since my business are here in the Philippines.

 

3. The question is how I manage this with a customer invoice and the payment. Also how do I record bank charges correctly for this?

a. Make an invoice for the customer.

b. Record a Payment for the invoice.

c. Send a sales receipt to customer.

 

But this guests booked online with us and paid via Stripe. In this case in EUR so it goes to the EUR account with Stripe. Stripe will the deposit this a few days later in to my EUR account with Transferwise.

a. I need to record the Stripe charges somewhere?

 

So I made an invoice for this person. So the currency is different since my home currency are in PHP first of all. I read I should out this invoice under Undeposited Funds account. And then when the funds have been transferred from Stripe to Transferwise I will record it from there. And also add in bank charges or any other charges there might be. This since payments comes in a cluster from Stripe to Transferwise. Is this the correct way of doing this or not?

 

Or should I wait until the money are in my bank account. Then record it as and income under the different income accounts I have. Also record the different charges there are from Stripe for example. The question is only what I should do with the invoice I have made already? Your input would be very appreciated about this.

 

Quickbooks also tells me I can only use one foreign currency at the time! Whats this mean actually? Invoice is in PHP but I do receive EUR so how do I make this correctly with my invoices? Record this transaction in EUR or in PHP?

Been using Wave Accounting for many years. But have transfered from their to Quickbooks a few ago only. So I would need some help or input on how to work these small problems out, thank you for your time.

12 Comments 12
Catherine_B
QuickBooks Team

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!

Torleif67
Level 1

Record bank transactions

Hello Catherine!

 

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

Torleif67
Level 1

Record bank transactions

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

GlinetteC
Moderator

Record bank transactions

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.

Torleif67
Level 1

Record bank transactions

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?

Torleif67
Level 1

Record bank transactions

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?

AlexV
QuickBooks Team

Record bank transactions

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:

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

Torleif67
Level 1

Record bank transactions

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

Torleif67
Level 1

Record bank transactions

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

JessT
QuickBooks Team

Record bank transactions

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!

Torleif67
Level 1

Record bank transactions

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?

AileneA
QuickBooks Team

Record bank transactions

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: 

 

 

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

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