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Returned Wire Transfer plus profit off currency exchange rate

Hello, I have a pretty confusing situation that I hope someone can help me with.  We paid a vendor with a wire transfer, however the next day found out that we were given incorrect bank information and so the wire was not successful. The bank refunded us the money for the wire, however because of currency exchange rates from Euros back in to dollars we made an unexpected $80 profit in addition to the original wire amount.  We then resent the wire for the original amount.  Originally we had entered the first wire in as a journal entry because we paid before receiving the items.  We always enter bill payments once the items are received.  So when we received the shipment the journal entry was then applied as a credit to pay off the bill payment.  

 

The problem I'm facing now is matching up the 3 bank transactions to reconcile my bank account.  I have two debits for the same amount from the 2 wire transfers and I have one credit from the returned wire 1 plus $80 income from the exchange rate.

 

For example

Wire 1:  Debit $10,000

Wire 2: Debit $10,000

Refund: Credit $10,080 

 

On the banking page the first wire matched up with the journal entry and I'm unsure what to do with the 2nd wire and the refund we received back. The 2nd wire won't match with the bill payment because that was credited by the journal entry (from wire 1).  I'm assuming I should make a journal entry to debit A/P and Credit the bank account but the amounts will not balance out to $0 because of the income off the exchange rate(+$80).  If anyone can help I would really appreciate it.  Thank you!

Solved
Best answer 03-06-2019

Accepted Solutions
QuickBooks Team

Re: Returned Wire Transfer plus profit off currency exchange rate

Good day, @Eliana-HT.

 

Thanks for reaching out to the Community space. I’m here to make sure you’re able to match downloaded transactions to the ones entered in QuickBooks.

 

You need to pull up the JE for the second wire transfer and edit the entry to balance with the refunded amount. Debit the bank ($10,080) and credit both Accounts Payable ($10,000) and Exchange Gain and Loss ($80).

 

Once done, match the transactions in the Banking page. Here’s how:
1.    Go to Banking from the left menu.
2.    Click the For Review tab.
3.    Locate the transaction.
4.    On the Action column, click Match.

 

 

I’m adding some helpful article for your reference:
•    Create a journal entry.
•    Add and match downloaded banking transactions.

 

That should answer your question for today. Let me know how it goes. If you need anything else, leave a reply below. I’ll be more than happy to help. Thanks for dropping by and take care!

1 Comment
QuickBooks Team

Re: Returned Wire Transfer plus profit off currency exchange rate

Good day, @Eliana-HT.

 

Thanks for reaching out to the Community space. I’m here to make sure you’re able to match downloaded transactions to the ones entered in QuickBooks.

 

You need to pull up the JE for the second wire transfer and edit the entry to balance with the refunded amount. Debit the bank ($10,080) and credit both Accounts Payable ($10,000) and Exchange Gain and Loss ($80).

 

Once done, match the transactions in the Banking page. Here’s how:
1.    Go to Banking from the left menu.
2.    Click the For Review tab.
3.    Locate the transaction.
4.    On the Action column, click Match.

 

 

I’m adding some helpful article for your reference:
•    Create a journal entry.
•    Add and match downloaded banking transactions.

 

That should answer your question for today. Let me know how it goes. If you need anything else, leave a reply below. I’ll be more than happy to help. Thanks for dropping by and take care!

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