Hi there, @Muzillu.
I'll help share how entering foreign currency transactions works in QuickBooks Online so you can record the payment from a client in the US.
You're on the right track, recording a payment with currency, not on the invoice is not allowed. Therefore, we'll have to create a dummy bank with your local currency, use it to record the received payment, and transfer the funds to your USD bank account. I'll show you how.
- Go to Accounting.
- Select Chart of accounts.
- Click New.
- Under Account Type, select Cash and cash equivalents.
- On the Detail Type menu, choose Cash on hand.
- Below the Currency option, select your local currency (MVR Maldives Rufiyaa).
- Enter the name of your new bank account. Say Dummy Bank for Foreign Currency Transaction.
- Click Save and Close.
Once done, go ahead and create a payment transaction and make sure to select the newly created bank account under the Deposit to selection- menu.
Now that you've recorded the payment, let's transfer the funds from your local currency bank account to USC which your client used to process the payment. Kindly read this article to learn more about how to transfer funds between bank accounts: Learn more about transfers in QuickBooks Online.
Processing multicurrency transactions may take a lot longer than the regular recording method so I have prepared a couple of articles to help manage your foreign currency accounts:
I've got you covered if you have questions aside from recording foreign currency payments in QuickBooks. Don't forget to include my name, @JonpriL, in your reply in the comments below so that I can get back here and lend a hand. Take care always, @Muzillu!
