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Level 2

Transfer funds between different currencies bank accounts

Hello ,

 

 I  need to record a money transfer from AUD bank account to USD bank account.  Ho to handle  this record is  correct way and exchange gain or loss have been recognized  ? 

 

Thank you in advance, 

Roman 

Solved
Best answer 03-12-2019

Accepted Solutions
QuickBooks Team

Re: Transfer funds between different currencies bank accounts

Hi there, @roman mazurak.

 

Glad to see your post here in the Community. I can help you record the money transfer in QuickBooks Online.


First thing to do is create an AUD bank account. I'll show you how:

  1. Click Accounting.
  2. Click New at the upper-right corner.
  3. Enter the account information and make sure to choose AUD as the currency (see screenshot).
  4. Click Save and Close.

After that, you will have to create a bank transfer

  1. For Transfer Funds From, enter the newly created bank.
  2. For Transfer Funds To, choose your USD bank account.
  3. Enter the Transfer Amount and other necessary information.
  4. Click Save and close.

 

That's the correct way of recording the transfer. Don't hesitate to ping me if you have additional question about transferring funds. Have a wonderful day ahead. 

View solution in original post

QuickBooks Team

Re: Transfer funds between different currencies bank accounts

Hi @roman mazurak,

 

You need to create a clearing account for your transfers from two foreign accounts. I'd love to help you with this.

 

Currently, transferring funds from two foreign accounts is not possible.

 

As a workaround, you'll first need to create a clearing account with your home currency to transfer funds successfully. Here's how:

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

Once done, you'll need to transfer funds from EUR account to the clearing account you created. Then from the clearing account to the USD account. Note that the amounts should match to get the exact value of funds.

 

That's it! Please let me know if you have any other questions about transferring funds, don't hesitate to reach out to me. I'll be here to help.

View solution in original post

20 Comments
QuickBooks Team

Re: Transfer funds between different currencies bank accounts

Hi there, @roman mazurak.

 

Glad to see your post here in the Community. I can help you record the money transfer in QuickBooks Online.


First thing to do is create an AUD bank account. I'll show you how:

  1. Click Accounting.
  2. Click New at the upper-right corner.
  3. Enter the account information and make sure to choose AUD as the currency (see screenshot).
  4. Click Save and Close.

After that, you will have to create a bank transfer

  1. For Transfer Funds From, enter the newly created bank.
  2. For Transfer Funds To, choose your USD bank account.
  3. Enter the Transfer Amount and other necessary information.
  4. Click Save and close.

 

That's the correct way of recording the transfer. Don't hesitate to ping me if you have additional question about transferring funds. Have a wonderful day ahead. 

View solution in original post

Level 1

Re: Transfer funds between different currencies bank accounts

When you enter the Transfer Funds From amount in Canadian funds, and then put the Transfer Funds to, a US bank account, Quickbooks uses their own rate so it doesn't convert exactly to what the bank actually deposited into our account. Is it Ok to change the exchange rate, so that you tie to what the bank actually deposited into your account? And what if you do so, but it doesn't tie exactly to what the bank actually deposited into your US bank account? Do you need to do a Exchange Gain/Loss journal entry?  thanks

QuickBooks Team

Re: Transfer funds between different currencies bank accounts

It's nice to see you here in the Community, @egarccc.

 

In QuickBooks, you can change the rate of the other currencies through the Currencies tab in the Advanced settings.

 

Before changing the rate of the other currencies, you'll need to check first with your accountant so they can tell you their best advice. 

 

Here's how you can change the rate:

  1. Click on the Gear icon, choose Accounts and Settings.
  2. In the Advanced tab, choose Currencies
  3. Click on Manage Currencies.
  4. Choose a currency you want to change the rate, click on Edit currency exchange.
  5. Select Your rate, then enter the exchange rate.
  6. Click on Save.

The effect of changing the currency rate can be seen in accounts payable or accounts receivable as an unrealized gain or loss. This can also be evident in other account types, like bank accounts, as a realized gain or loss.

 

Feel free to read this article for more information: About exchange rates.

 

If you have other concerns, feel free to let us know below. 

Level 1

Re: Transfer funds between different currencies bank accounts

What if you have Desktop (and not Online)?

Level 1

Re: Transfer funds between different currencies bank accounts

In QB desktop, if I do to "Transfer Funds", I am transferring funds from a canadian bank account, into a USD bank account. Ex:

 

Transfer Funds From: CAD Bank    

Transfer Funds To: US Bank

     Transfer Currency: CAD dollar

     Transfer Amount: CAD 57,645.91

So when I look at my CAD register, this is the correct amount. This is the CAD amount I would like to transfer over. However, when I look at the US bank register, it is not the same amount as the bank transferred over.

 

I know this is because of the different exchange rates that Quickbooks and the bank uses, but how can I fix this?

 

thank you

Level 1

Re: Transfer funds between different currencies bank accounts

Alessandra: here is my issue. When using "Transfer Funds" example:

 

Transfer Funds From: CAD Bank

Transfer Funds To:  US Bank

      Transfer Currency: Canadian Dollar

      Transfer amount: CAD $57,645.91

 

So, when I look at my CAD register, this amount is correct. This is the amount I would like to transfer from my CAD bank account. However, when I look at my US register, the amount is incorrect.

 

I know this is caused due to the differences in the Quickbooks and Bank exchange rate. How can I correct this, so that my US register has the correct amount that matches the bank statement?

 

thank you

QuickBooks Team

Re: Transfer funds between different currencies bank accounts

Hi there, @egarccc.

 

Thank you for getting back to us here in the Community. I'm here to help share information about transferring funds to bank accounts with different currency in QuickBooks Desktop (QBDT).

 

When transferring funds to a different currency account, the amount would be converted to the currency of the bank account where you transfer the funds. Since the exchange rate of Canadian Dollar and United States Dollar is different, the amount in the US register would be different from the CAD register.

 

Let me know if you have any other questions about transferring funds to different currency, I'm always here to help. Have a good one!

Level 1

Re: Transfer funds between different currencies bank accounts

Yes, I know the amount in the US register would be different from the CAD register. But the US register amount that Quick Books generates, is different than what the bank statement has.

Let me continue with the example:

 

Transfer Funds From: CAD Bank

Transfer Funds To:  US Bank

      Transfer Currency: Canadian Dollar

      Transfer amount: CAD $57,645.91

Amount in US register: $43,810.89

 

However, when I look at the US bank statement, the amount is US $42,700.67 ( diff of $1,110.22)

 

How do I correct this, so my US dollars amount in QuickBooks matches to what my US bank statement has for this funds transfer.

 

thank you

Level 10

Re: Transfer funds between different currencies bank accounts

You can change the exchange rate, even let it calculate the rate. Enter the one amount / the other, in the exchange rate box

Level 1

Re: Transfer funds between different currencies bank accounts

What if I do change the exchange rate, but I am still off a couple of pennies. Quickbooks only allows for 6 decimal places. Do you create a JE at that point?   thanks

QuickBooks Team

Re: Transfer funds between different currencies bank accounts

Hello, Egarccc.

 

Yes, you can create a journal entry to offset the amount.

 

Here's how:

  1. Click Company.
  2. Choose Make General Journal Entries.
  3. Fill in the necessary fields.
  4. Click Save & Close.

Before creating any entries, please confer with your accountant on the best way to categorize the accounts. 

 

We're around if you need more help. You can always leave a comment. 

Level 10

Re: Transfer funds between different currencies bank accounts


@egarccc wrote:

What if I do change the exchange rate, but I am still off a couple of pennies. Quickbooks only allows for 6 decimal places. Do you create a JE at that point?   thanks


If you enter the one amount / the other, in the exchange rate box, it will be exact

Level 1

Re: Transfer funds between different currencies bank accounts

i did divide them against each other, however, since QuickBooks only allows 6 decimal points, it still has some pennies off. I think at this point I will  need to do a JE?

Level 10

Re: Transfer funds between different currencies bank accounts


@egarccc wrote:

i did divide them against each other, however, since QuickBooks only allows 6 decimal points, it still has some pennies off. I think at this point I will  need to do a JE?


Did you divide them against each other in the exchange rate box in the transaction screen?  I do that and have never been off

Level 1

Re: Transfer funds between different currencies bank accounts

on a calculator.

 

How do I divide them in the box? if i put 57645.91/42700. - it stops there, I cant put any more digits, and the US amount in the register becomes this HUGE number (and it is completely incorrect). How exactly do you mean? :/

QuickBooks Team

Re: Transfer funds between different currencies bank accounts

Hi there, @egarccc.

 

Let me guide you on which numbers to divide to get the correct exchange rate.

 

If you wish to get the exchange rate from CAD to USD, you’ll need to divide 57,645.91 by 43,810.89. On the exchange rate box, enter the quotient with the first 6 numbers.

 

However, if you wish to get the exchange rate from USD to CAD, you’ll need to divide 43,810.89 by 57,645.91 and enter it on the exchange rate box.

 

To check the transaction amounts if they are correct, you can go to your register to verify the transaction made. Follow these steps:

  1. On the left panel, click on Chart of Accounts.
  2. Select the account, click on View Register.
  3. Select on the transaction and verify the Exchange rate, Home Currency, and Currency.

Feel free to leave a comment below if you have any other concerns.

Level 1

Re: Transfer funds between different currencies bank accounts

the box looks like this:

EXCHANGE RATE 1 CAD=

"enter the quotient with the first 6 numbers" that is just the problem. I need more than 6 digits. I still have some pennies difference dong it like this. For the few pennies that I am off, I will just do a journal entry. i think that is the only way. Do you agree?

Level 2

Re: Transfer funds between different currencies bank accounts

Hello ,  

Thank for your response. 

I have a following case. 

My home currency is GBP. But there are  also a bank accounts in EUR and USD .  How I can do a transfer from EUR to USD in correct way while my home currency is GBP ? 

Level 2

Re: Transfer funds between different currencies bank accounts

Hello , 

How I can do a transfer from EUR bank account to USD bank account while my home currency is GBP ?   

QuickBooks Team

Re: Transfer funds between different currencies bank accounts

Hi @roman mazurak,

 

You need to create a clearing account for your transfers from two foreign accounts. I'd love to help you with this.

 

Currently, transferring funds from two foreign accounts is not possible.

 

As a workaround, you'll first need to create a clearing account with your home currency to transfer funds successfully. Here's how:

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

Once done, you'll need to transfer funds from EUR account to the clearing account you created. Then from the clearing account to the USD account. Note that the amounts should match to get the exact value of funds.

 

That's it! Please let me know if you have any other questions about transferring funds, don't hesitate to reach out to me. I'll be here to help.

View solution in original post

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