Hello, Raymond. Thank you for reaching out with your concern regarding handling foreign expenses in QuickBooks Online. It’s great that you’re proactively seeking clarity, especially since processing transactions with foreign fees can seem a bit tricky at first. Based on the details you’ve provided regarding the ride share expense in Thailand and its corresponding foreign exchange fees. Let’s ensure everything is documented accurately and aligned with best practices.
When foreign transactions involve exchange rate fees that are processed separately by your financial institution, it simplifies the recording process. In your case, the main vendor cost (the ride share expense) should be categorized appropriately, such as under Travel | Taxis and Ride Shares. The foreign exchange fees can be tracked as a separate transaction, which would typically fall under a category such as "Foreign Exchange Expense," "Bank Fees," or a similar account in QuickBooks Online. If you’re unsure about the exact account to use, consulting an accountant is highly recommended to ensure everything is categorized correctly and accurately.
To further streamline the process, you may want to assign the vendor profile a USD currency in QuickBooks Online. Doing this ensures that future transactions and reporting align with your home currency, avoiding exchange rate gains or losses when processing foreign invoices. However, if you plan to frequently make payments to vendors in other countries, you could also set their profile to reflect their native currency, and QuickBooks will automatically handle the exchange rate calculations in the background.
I hope this explanation helps simplify things for you. Proper categorization and documentation are key for maintaining accurate and organized financial records. Please don’t hesitate to reach out if you have any further questions or need additional guidance. I’m happy to help anytime. Have a fantastic day!
