How to record multicurrency money transfer?

mr_kerad · ‎December 31, 2021

We run money transfer company in the UK. Our main products are money transfers bewteen UK and Europe (GBP/EUR and EUR/GBP). We have two bank accounts in GBP and EUR for payments coming in and out. We receive direct deposits from customers in one bank and send the funds to customer from second account.
Example of our invoice for transfer from UK to Europe include:
Currency: GBP/EUR
Exchange rate 1 GBP= 1.2 EUR
Sending amount: 100 GBP
Transfer charge: 2 GBP
Amount to payout: 118 EUR

Our customer pay into sterling account 100 GBP, then we sent 118 EUR from our EUR account to customer bank account. How to record thess transactions in Quickbooks Online?

Kevin_C · ‎December 31, 2021

Hello there, @mr_kerad. I'm here to provide details on transferring different currencies between two bank accounts in QuickBooks Online (QBO).

In a multi-currency company, the transactions you create or enter will still be in your home currency. We use this information to track businesses in obtaining the most accurate data for their financial reports during the fiscal year.

Firstly, you can create a GBP and EUR bank account:

Click the Gear icon, then go to Bank Deposit.
Select + Add new to add a new bank account.
Choose the currency, then Save and Close.

After creating a new bank account, proceed to create a bank deposit.

Select the GBP bank account.
Select the GBP currency.
Input the amount, then choose an account.
Click Save and Close.

Then, you can transfer funds from a GBP bank account to an EUR bank account. See this:

Lastly, you can now send a cheque to your customer. Here's how:

Select your payee.
Use the Euro bank account.
Choose the amount.
Select Save and close.

Additionally, I'm including a few articles that you can read to learn more about recording Multi-currency transfers:

Let me know if you have additional questions about this. I'll be right here to lend a hand. Have a good one!