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Flyingkiwi
Level 4

Multi Currency issues - Open Invoices

I have been using Multi Currency for 10 years and am noticing some old problems that I do not know how to solve.

I have had customers billed in one currency, and payments received in multiple currencies. These were applied to the A/R account with correct exchange rate conversion.

The A/R account balance for the customer is zero, correct.

But if I run the Open Invoices report, there is a balance outstanding there.

 

Any ideas on how to clear an incorrect 'open invoice'

Solved
Best answer February 14, 2021

Best Answers
Flyingkiwi
Level 4

Multi Currency issues - Open Invoices

Thanks...

I ended up fixing these 6 and 10 year old transactions myself this afternoon.

For some reason, back then, QB allowed foreign currency deposits to be credited to Accounts Receivable in a different currency. (I am pretty sure that is now blocked). So the amounts credited to invoices was at a zero (1:1) rate, while the bank and financial side was correctly exchanged. 

I 'fixed' it by changing the original transaction to credit a suspense account instead of A/R, then created a payment for the home currency debt from the suspense account, which zeroed out everything.
(All entries at original 2015 and 2011 dates to keep my auditor happy... I hope!)
Case closed.. but thought to leave the documentation in case someone else running multi currency has payments in multi currency to a single debt, and finds the open invoices report reading strange.

 

View solution in original post

5 Comments 5
MaryLandT
Moderator

Multi Currency issues - Open Invoices

I'm here to help close the outstanding invoices, Flyingkiwi.

 

You need to use the home currency accounts to complete any open balances. Then, use foreign-currency accounts for transactions after all open balances are closed.

 

That being said, you need to use Accounts Receivable when recording the payment. Doing this will allow the system to link the deposit to the outstanding invoice. I've added a screenshot of the sample payment.


 

When you record a payment for the invoice, you can see unused credits, which is the deposit. If you apply it, that will zero out the outstanding balance.
 

 

I've added this article for more details about this feature: Set up and use Multicurrency.

 

Keep me posted if you need additional information by commenting below. I'll be right here to help you.

Flyingkiwi
Level 4

Multi Currency issues - Open Invoices

I will dig into this as I get time. 

As stated I have been using Multi-currency for many years. Some of my early errors, from 8-9 years ago are popping up when I see open balances. The customer balance is zero, because they paid in multiple currencies, and in then early days entries were posted wrong, as deposits or even journal entries.

 

The customer balance is zero, Customer receivables report (in home currency) is zero, but checking open balances or running reports showing foreign currency then produce strange results.

 

I will come back to you after Christmas with some examples.

Flyingkiwi
Level 4

Multi Currency issues - Open Invoices

I have been digging into a situation from 2015.

The customer balance is zero, fully paid.

One transaction was applied as a deposit in Euros to the customer A/R account in SEK, and exchange rate applied.

The A/R balance for the customer is zero. However, the transaction type, deposit (yes I know that is wrong) was applied as credit to the invoice in Euros amount, not converted currency amount.

 

Customer statement shows a debt.

Accounts Receivable report (Customer Balance) shows zero.

Open Invoices report shows a debt.

 

But there is no debt - the report is wrong because of mixed currencies being applied at 1-1 instead of the rate entered on the day.

 

My accounts balance. But the Open Invoices and Customer statement reports are not reliable.
Is there a way I can clear the open invoice without creating a monetary transaction as none is required?

 

Ryan_M
QuickBooks Team

Multi Currency issues - Open Invoices

Hi @Flyingkiwi,

 

Thank you for your reply, as well as for sharing an update on your situation. I'll point you in the right direction for support with your query.

 

At this point, I suggest you contact our Technical Support team for assistance. They can remotely access your computer, with your permission, and investigate these outstanding balances.

 

You can keep this article for reference: Contact QuickBooks Desktop support. It also has their hours of operation, so you know when they're available. 

 

Open this article as well: AR balance on the Chart of Accounts does not match AR balance on reports. It has the steps you can take if you're in a situation where A/R amounts don't match.

 

Let me know in the comments below if you have other questions about your QBDT balances. I'll be around to help you out. 

Flyingkiwi
Level 4

Multi Currency issues - Open Invoices

Thanks...

I ended up fixing these 6 and 10 year old transactions myself this afternoon.

For some reason, back then, QB allowed foreign currency deposits to be credited to Accounts Receivable in a different currency. (I am pretty sure that is now blocked). So the amounts credited to invoices was at a zero (1:1) rate, while the bank and financial side was correctly exchanged. 

I 'fixed' it by changing the original transaction to credit a suspense account instead of A/R, then created a payment for the home currency debt from the suspense account, which zeroed out everything.
(All entries at original 2015 and 2011 dates to keep my auditor happy... I hope!)
Case closed.. but thought to leave the documentation in case someone else running multi currency has payments in multi currency to a single debt, and finds the open invoices report reading strange.

 

View solution in original post

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