Receiving payments and matching bank transactions

Let me help you fix the overstated bank balance, @Marja Kleynhans. 

Possibly, the process created duplicate transactions. That's why the result of the bank balance is overstated. Also, it could be that there are new transactions added to QuickBooks ( new transactions will be added automatically for a connected account). This results in having an overstated or new bank balance in QuickBooks as well.
 

First, you'll need to manually record a payment to the open invoices. Afterward, make sure to match the bank transaction to the paid invoice.

Please note that when QuickBooks downloads bank data, it tries to find a match with any QuickBooks transactions already entered. If you agree with the match information shown in the row, you only need to click the Match button. This will match with the existing QuickBooks transaction. 

If not, you can match or categorised them to the correct transactions by utilizing the Find match option. 

For more details about handling bank transactions, you can check this article: Categorise and match online bank transactions in QuickBooks Online.

Also, you can get more points from these articles:

• Learn the reconcile workflow in QuickBooks
• How to fix differences between QuickBooks balance and bank balance.

I'd be glad to hear if everything's balanced. Don't hesitate to comment below if you need further help. Take care and have a good one, Marja Kleynhans.

Thank you @SarahannC  for your comprehensive reply.  I'll follow the steps you've set out in your reply and view the content in the links you've provided.  The bank transactions in my QB account are manually uploaded only.  I don't make use of automatic connections facility.

What I omitted from my original post, which in hind sight I should have included, is that two payments for customer invoices have differences due to foreigh currency.

Example: Invoice 1001 to Customer A was for a total amount of EURO8820. Upon receiving payment from the customer, the bank e-mails me a remittance advice which specifies the payment received.  
(Our bank's currency is USD)
In the bank account we received USD 9882.39  The remittance advice sets out the amount received in EURO as EUR8805.  
In QB, how do I account for the EURO 15 that was short received?

I presume that I'd need to get this right before I'm able to properly balance the bank account in QB with the actual bank balance?

Best,

Marja

We don't want you to be inconvenienced in any way. Please be assured that assisting you with receiving payment in a foreign currency is our priority, @Marja Kleynhans.

QuickBooks Online can generate invoices and bills in a variety of currencies. However, we can only use our home currency bank account. This means QuickBooks is unable to record a payment in a currency that does not match the invoice or bill's currency.

To receive payments in a foreign currency, please take note that the Multicurrency feature has to be enabled. You can click the Gear icon and select the Advanced tab. 

First, we’ll need to create a dummy bank account using your home currency to allow the flow of different currencies. I’ll show you how:

1. Go to the Gear icon and then select Chart of Accounts.
2. Click New.
3. Under the Account Type column, select Cash and cash equivalent. Select Cash on hand as the Detail Type. Type in Dummy Bank under the Name column.
4. Let’s make sure you’re using your home currency (USD) in this account before saving and closing it.

Once done, we can initially record the payment through the Receive Payment and Deposit to the Dummy Bank. Please take note of the amount provided at the bottom right before saving the transaction.

After that, we’ll transfer the amount of USD 9882.39 from Dummy Bank to the EUR bank account. Since the bank already advised you to set out the amount in EURO as EUR8805. We can use these figures, or you can check if they match with the conversion rate.

Here’s how:

1. Navigate to + New and select Transfer.
2. Choose Dummy Bank from the drop-down arrow under Transfer Funds From column
3. Using the drop-down arrow next to Transfer Funds To, choose EUR Bank.
4. Select USD from the drop-down arrow under the Currency column.
5. Under the Transfer amount column, type in 9882.39.
6. The exchange rate will automatically appear. You can also manually change it and use the provided amount from the bank.

I'll be sharing with you how Multicurrency works. You might also consider adding a foreign currency account to your Chart of Accounts.

I’ve added these informative resources that’ll guide you with fixing reconciliation in QuickBooks:

• Categorise and match transactions.
• Mixing currencies in journal entries.
• Learn the reconcile workflow in QuickBooks.
• Fix issues for accounts you've reconciled in the past in QuickBooks Online.

Feel free to hit the Reply button if you have other questions about bank transactions and foreign currencies. I'll handle it for you. Have a great day!

Hi @JamaicaA

Thank you for your response and for sending more links with content.

I confirm that the Multicurrency Feature has been enabled at the time I setup the QB profile.

Background of the company and its setup:
Our company is based in Dubai and therefore the home currency has been setup as AED (Dirham) in Quickbooks as it is also the currency of our financial reports.
Our company has two bank accounts:
- AED
- USD

The USD account is the nominated account for customer payments.

Now that you have this information, how will my problem with receiving multicurrency payments in EURO be resolved?

I'm looking forward to your reply.
Marja

Let me help you receive the multicurrency payments in Euro, Marja Kleynhans.

When recording payment received, we are only able to use the home currency bank account or the bank account with the currency that matches the invoice/bill. To receive and make payment with a foreign currency, we'll have to create a new dummy bank account in the home currency to facilitate the movement between 2 different foreign currencies. 

Then, record payment of the foreign invoice. In the Receive Payment module, set the Deposit To field to dummy bank before saving the transaction. We'll have to take note of the home currency amount displayed at the bottom right. You can check out this article for the steps and details: Receiving and making payment for a foreign invoice/ bill with a foreign currency.

I've got articles here for more insights about Multicurrency feature:

• Turn on and use multicurrency
• About Multicurrency
• Learn about Multicurrency in QuickBooks Online

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you. You have a good one.