AUD to USD

Hello there, @rludwig. I'm here to help you record the payment made from a different currency in QuickBooks Online (QBO).

In QBO, you can only use the home currency bank account or the account with the currency that matches the invoice when recording payments made. To do so, ensure that the Multicurrency feature is enabled to successfully record payment with a foreign currency.

To start, you'll have to create a dummy bank account in the home currency to cater for the movement between 2 different foreign currencies. Here's how:

1. Select the Gear icon and choose Chart of Accounts
2. Then, click New
3. Under the Account Type column, click Cash and cash equivalent. In the Detail Type column, click Cash on hand. Then, under Name column, type in Dummy Bank
4. Make sure that it is in the home currency, before saving and closing it.

Once done, you'll have to record the payment of the foreign invoice first. In the Receive Payment page, set the dummy account in the Deposit To field. Before saving, take note of the home currency amount displayed at the bottom right.

Then, create a bank transfer to move the funds to the correct bank account.

For more details, check out this article: Receiving and making payment for a foreign invoice/ bill with a foreign currency. This article is for QBO SG but can be applied to QBO US users. 

I also recommend reaching out to your accountant for additional guidance in recording the transaction. This is to ensure you'll account for the transaction correctly. If you don't have one, you can use the Find an Accountant tool to look for one near your area.

I'm always here ready to lend a hand if you have any other concerns about managing multi-currency transactions in QuickBooks. Have a good one and stay safe. 

Thank you! I appreciate the help. 

I have two follow-up questions. 

1. When I tried to set up the dummy account, I didn't have cash or cash equivalent as an account type to choose from.

Can you help?

2. Since my AUD is $2,800 and USD is $2,100. Now my dummy account has a -USD700 balance. 

Is this an account I must reconcile at the month's end? Or will the balance be kept carrying forward? 

Thank you!

Your case is unique, so it needs a few steps to be done, @rludwig. I'll be here to clarify the drop-down options and amount difference.

The cash and cash equivalent account type will show if you're using an AU account. However, you'll have the option to select the Bank if you're using the US version. I've added some snippets below for your reference:

In terms of the -$700, I highly recommend consulting your accountant on how to balance the amounts. It's also best to reconcile transactions monthly, as the balance will be carried over moving forward. This way, we can ensure that we're using the correct accounts.

Feel free to check out these links to learn more about using multicurrency along with the exchange rates:

• Set up and use multicurrency in QuickBooks Online
• Enter and use your own exchange rates

Once everything is settled, refer to this article for the complete reconciliation process: Reconcile an account in QuickBooks Online.

Please let me know if you need further clarification about this. You can always get back to us by leaving a comment below. We're always here to help.

Thank you for getting back to me.

I figured out what causes my issues. 

My Wise AUD account is not set in AUD but USD. Also, I use general entires in my dummy account to balance. 

Hope this will help everyone eles.