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GlobD
Level 2

How to input payment in a different currency than shown on invoice

Hello

 

I've got a small problem, as I cant seem to find a way to input everything in a way that both bank statement and supplier's page can reconcile.

 

So I got an invoice from a supplier in GBP. We both agreed for me to pay it in EUR, and he will do the conversion (my home currency is neither one of those).  Now, I am trying to enter the payment in Bank Account History, and if I just create the EUR account for customer, the bank statement will show OK, but the balance on the customer account will be screwed up.

The easiest thing to do would be for me to create a GBP account, and then transfer the funds from EUR to GBP, and make a payment from there, but apparently its impossible to transfer between your own accounts if neither of them is in your home currency??

 

The logical thing to do would be to transfer money from EUR to my home currency, then from that to GBP, but its way too much work, since we have a lot invoices with this same problem.

 

I was wondering if there is some workaround for this situation?

 

Thanks in advance

 

Solved
Best answer February 28, 2019

Best Answers
PreciousB
Moderator

How to input payment in a different currency than shown on invoice

Hi GlobD,

 

I'll join this thread to help you record the bill payment.

 

You'll have to set up a clearing account to handle transactions between two foreign currencies.

 

First create a clearing account using your home currency:

  1. Select Accounting on the left pane.
  2. Under Chart of Accounts, click New.
  3. Choose Bank under the Account Type.
  4. Select your home currency
  5. Enter the needed details.
  6. Leave the Balance blank.
  7. Click Save and Close.

Next, enter bill payment using the clearing account:

  1. Click the Plus sign icon, then choose Pay Bills.
  2. Select the open bill.
  3. Choose the Clearing account under the Payment account (see the screenshot below).
  4. Enter the necessary information.
  5. Click Save and close.

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Lastly, use the clearing account when moving funds from one currency to another.

 

Check out this article for more details: Set up a clearing account. This article is for QuickBooks Desktop however, the information can be used for QuickBooks Online.

 

That information should get you on the right track. I'd be delighted to answer other questions should you have any. Cheering you to continued prosperity.

View solution in original post

8 Comments
Paulg1969
Level 3

How to input payment in a different currency than shown on invoice

Probably not the answer you want but to save time and energy/heartache. I suggest you enter the invoice on your system in your own currency and then make the payment in your own currency hopefully there is not too much of a timing delay between the two transactions but if there is you can enter the invoice at your best estimate and either change later or post the difference to an exchange rate account.

PreciousB
Moderator

How to input payment in a different currency than shown on invoice

Hi GlobD,

 

I'll join this thread to help you record the bill payment.

 

You'll have to set up a clearing account to handle transactions between two foreign currencies.

 

First create a clearing account using your home currency:

  1. Select Accounting on the left pane.
  2. Under Chart of Accounts, click New.
  3. Choose Bank under the Account Type.
  4. Select your home currency
  5. Enter the needed details.
  6. Leave the Balance blank.
  7. Click Save and Close.

Next, enter bill payment using the clearing account:

  1. Click the Plus sign icon, then choose Pay Bills.
  2. Select the open bill.
  3. Choose the Clearing account under the Payment account (see the screenshot below).
  4. Enter the necessary information.
  5. Click Save and close.

undefined

 

Lastly, use the clearing account when moving funds from one currency to another.

 

Check out this article for more details: Set up a clearing account. This article is for QuickBooks Desktop however, the information can be used for QuickBooks Online.

 

That information should get you on the right track. I'd be delighted to answer other questions should you have any. Cheering you to continued prosperity.

View solution in original post

GlobD
Level 2

How to input payment in a different currency than shown on invoice

Figured it out on my own, but thanks :) I'll mark it as a solution for anyone that might stumble upon the question

Joyce_P
QuickBooks Team

How to input payment in a different currency than shown on invoice

Hi there, GlobD.

 

You did a great job in performing the steps to resolve this concern about how to input a payment in a different currency that is shown in your invoices

 

Feel free to get back to us if you need anything else. We'll always be here to help. 

 

 

LaNo
New Member

How to input payment in a different currency than shown on invoice

I have a similar problem.

We receive invoices in EUR, and this time the invoice was paid from our USD account.

When trying to pay the bill in QB it doesn't let me select the USD account for bills in EUR accounts payeble, only the CAD account. The payment has been done at the bank, we just can't make the payment work in QB.

How can we pay bills from the USD account without it being a USD invoice?

/LaNo

katherinejoyceO
QuickBooks Team

How to input payment in a different currency than shown on invoice

Hi there, @LaNo.

 

Thanks for sharing your first post on this thread. You can use and turn on the  Multicurrency feature to receive and make payments with a foreign currency.

 

When recording transactions with a different currency, we're only able to use the home currency bank account or the bank account with the currency that matches the Invoice/Bill.

 

You can follow the steps shared by my colleague PreciousB to handle this type of transaction. You can also check out this article for more insights into this process: Receiving and making payment for a foreign invoice/ bill with a foreign currency

 

For future reference, read through this article: Assign a foreign currency to a customer in QuickBooks Online. It helps learn about recording transactions in the currency the customers pay you with.

 

Let me know if you have any other QuickBooks concerns. I'll be around to help. Have a nice day ahead.

 

 

LaNo
New Member

How to input payment in a different currency than shown on invoice

Hello.

Thank you for the quick reply.

Multi currency is active as we deal with a number of different currencies.

So if I understand this correctly I can't pay a bill from a bank account in other currency than the bill, unless it is from the home currency account.  I can pay bills in USD from the USD bank account, and bills in CAD and EUR from the CAD bank account.  Seems I will have to make a trail in QB between the bank accounts to make this work, not optimal but I think it is the only way to do it.  I have already spent hours trying to figure this out.

Tori B
QuickBooks Team

How to input payment in a different currency than shown on invoice

Hi there, @LaNo

 

Thanks for following up with us. 

 

You're correct. At this time, in QuickBooks Online, you can't pay a bill from a bank account in a different currency than the bill itself. 

 

Feel free to check out Add transactions in a foreign currency for additional details about this process. 

 

However, I understand how beneficial this feature would be for you and your business, so I have personally submitted a feedback request on your behalf to our Product Development Team. Our Product Developers review feedback requests and consider them for future updates. You can follow all of our future updates and latest happenings using our Blog Site

 

Please let me know if you have any questions or concerns. I'm happy to lend a hand. Take care and enjoy the rest of your day! 

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