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Level 1

Paying a vendor in one foreign currency from an account held in a second foreign currency

Hello, I'm really stuck on getting the entries correct for this transaction.  Our home currency is USD, but we're billed by a supplier in Euro and those get categorized into an expenses account. Those are billable expenses and the client pays in GBP into our GBP bank account.  So, to avoid multiple currency conversions we pay the supplier directly out of the GBP account, instead of out of our main USD account.

 

QBO won't let me use more than one foreign currency in a transaction and I don't know how to record the bill payment so that the bank accounts reconcile with the books.  I also tried creating a supplier specific current liabilities account in Euro, but that isn't working either.

 

Does anyone know a workaround for this kind of scenario?

 

Many thanks

 

2 Comments
QuickBooks Team

Paying a vendor in one foreign currency from an account held in a second foreign currency

Hi @Marmot,

 

I'll take care of this query for you about multi-currency transactions. 

 

Given that the client in question is recorded in your QuickBooks Online (QBO) company as a customer that pays in EUR, and the supplier as a vendor that you pay in GBP, then you can follow this process: Enter billable expenses

 

Create a bill, that's billable to the client. View the screenshots below for reference:

 

 

 

At this point, you can create the invoice for your client. Check out the screenshot below for reference:

 

 

Be advised, you'll have to input the exchange rate for each transaction. 1 GBP for USD, then 1 EUR for USD as well. 

 

In case you want to undo a billable expense assigned to a customer, see this article: How to remove a billable expense charge

 

I'll be around to help if you need further assistance. Tag me in the comments below, and I'll get back to you. 

Level 1

Paying a vendor in one foreign currency from an account held in a second foreign currency

Thanks Ryan, I'll start here but may have a follow up question about the bookings needed to pay the vendor from the EUR account.

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