entering vendor refunds when they arrive in a different currency

Thanks for dropping by the Community, Yo_Be_Low.

I can see how important it is for your business to be able to directly input the vendor refund from another currency. This allows you to easily track the transaction in QuickBooks Online (QBO).

Let me share an alternative solution on how to record this type of entry in your company. We’ll have to set up a clearing account for the EUR denominated account to record the money received.

Here’s how:

1. Go to the Accounting menu on the left panel and choose Chart of Accounts.
2. This will open a page that lists all accounts added in QBO.
3. From there, tap the New tab to display the Account type screen.
4. Choose Bank for the Account Type and select the appropriate category from the Detail Type drop-down.
5. Enter clearing or wash account in the Name field.
6. Make sure not to enter any amount in the Balance field.
7. Click Save and close.

Once done, you can now use the newly created clearing account. For more details, go to the To use a clearing account section in this article: Set up a clearing account. Please know that it’s from the desktop version but the process will work in QBO.

For tips and resources on how to handle your vendors' or customers' transactions, I'm adding some links below where you can access our self-help articles. They’re arranged by topic, so you’ll be able to access each one right away.

• Expenses and vendors
• Invoices and payments

Additionally, the following reference provides an overview of how the Multicurrency feature works: Learn about Multicurrency in QuickBooks Online. From there, you'll learn about adding a foreign account, vendor, customer, modifying, or adding a currency.

Click the Reply if you have clarifications about managing vendor refunds. I’ll get back to help and make sure this is taken care of for you. Have a great rest of your day.

I don't believe setting up a clearing account is a viable solution. The EUR denominated bank account is a real bank account that carries a balance. So when I receive a refund into that account, the money stays there. 

What I was asking was how to tie that to the original payment which was from a USD account (to the USD version of the vendor).

Hello there, Yo_Be_Low.

We're unable to create a refund that has a different currency from the vendor. You'll want to create a USD refund instead of EUR. You'll want to manually enter the converted amount on the transaction.

I'll be adding articles that will help you manage your currency transactions: 

• Enter expenses, pay bills, write checks, and manage suppliers.
• Add a vendor with a foreign currency in QuickBooks Online

Let me know if you need anything else. I'm always here to help if you have additional questions about recording refunds in QuickBooks.