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

GlobD · ‎February 07, 2019

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

PreciousB · ‎February 28, 2019

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:

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

Next, enter bill payment using the clearing account:

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

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

Paulg1969 · ‎February 28, 2019

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 · ‎February 28, 2019

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:

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

Next, enter bill payment using the clearing account:

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

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 · ‎March 02, 2019

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 · ‎March 03, 2019

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.

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