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Frequent Contributor *

Multicurrency Loans

I have a loan which of which the capital is split between EUR and USD.  Therefore, interest accrues in both currencies too.

 

I am using QBD in multicurrency form with GBP base currency.

 

Can I track these loan accounts in the relevant currencies or only in GBP?

 

Many thanks.

 

Solved
Best answer 06-21-2019

Accepted Solutions
QuickBooks Team

Re: Multicurrency Loans

You're right, E21J.

 

The Loan Manager won't work in your case since you don't know when exactly the company will repay the loan. With that said, you won't be able to track the total interest as it will accrue continuously.

 

Yes, you'll have to manually track the loans. Then, you'll have to set up two liability accounts. In regards to setting up the accounts, I'd suggest reaching out to your accountant to help you with what accounts are best to use.

 

Fill me in if there's something you'd like to ask. I'm always around.

3 Comments
QuickBooks Team

Re: Multicurrency Loans

Hi E21J,

 

Your loan tracker account and interest tracker account will automatically be set to GBP (home currency). We're unable to assign a different currency to them.

 

If you'd like to have two different accounts for each currency, you can create two tracker accounts, but again, both of them will be in GBP.

 

You can only assign currencies to the lender (vendor) and loan transactions. Every time you create transactions for them, you will use their currencies. I've made a sample load deposit and a payment for your reference

 

 

 

You can either use the Loan Manager feature or track them manually. These articles can guide you to enter your transactions:

If you have additional questions about this matter, feel free to go back to this thread.

 

Have a good day!

Frequent Contributor *

Re: Multicurrency Loans

Many thanks for this.

 

I have read your instructions and the two attached links, thank you.

 

The loan is not a standard loan.  It is not from a bank etc. but from a private entity.  As such it does not have standard repayment terms.  In fact, currently, it is not being repaid at all, it is simply accruing interest until such time as the company chooses to repay it.

 

Am I right in thinking that I would not be able to use the Loan Manager feature for this loan because 1)  there is no specific term to the loan which is information which is required in the first screen of the "Add Loan" feature and 2) I would not be able to add the loan interest as it accrues, for example quarterly?

 

Presumably I would be able to track such a loan using the "Manually Track Loans" feature by having two liability accounts and simply debiting Loan Interest Expense and crediting the Loan Interest Liability account?

 

Many thanks indeed.

QuickBooks Team

Re: Multicurrency Loans

You're right, E21J.

 

The Loan Manager won't work in your case since you don't know when exactly the company will repay the loan. With that said, you won't be able to track the total interest as it will accrue continuously.

 

Yes, you'll have to manually track the loans. Then, you'll have to set up two liability accounts. In regards to setting up the accounts, I'd suggest reaching out to your accountant to help you with what accounts are best to use.

 

Fill me in if there's something you'd like to ask. I'm always around.