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V
VincentHS
November 28, 2022
Question

How to process different currencies between accounts

  • November 28, 2022
  • 14 replies
  • 49 views

I would love to get some help on this... I'm lost... 

We have a multi-currency account, and something that seems relatively simple is getting more complicated to more I read about it... 

Our main QB currency is USD.

I have PHP in the bank and transferred X to a friend's PHP bank account. 

My friend gives me RMB to our digital account (wechat pay) back. 

We determine the exchange rate ourselves.

It's not sales, profit or loss; it should be nothing more than a simple exchange of funds between accounts. 

But how do I put this in our system... Your tips are greatly appreciated - thank you!

 

    14 replies

    A
    Archie_B
    Level 6
    November 28, 2022

    Good day, VincentHS.

     

    In QuickBooks Online (QBO), we can record a bank transfer to transfer funds between two accounts. 

     

    I'll show you how:

     

    1. Click on + New.
    2. Choose Transfer.
    3. Select the bank account that the money is coming from in the Transfer Funds From dropdown list.
    4. In the Transfer Funds To dropdown list, select the bank account that the money is going to.
    5. Enter the amount in the Transfer Amount field.
    6. Change the Date field.
    7. Hit Save and close or Save and new to complete the transfer.
    8. Select Yes if you double checked the date.

     

    Another option is to create a cheque to record your transfer. Check out this article for more information on the process: Transfer funds between accounts.

     

    If both RMB and PHP are foreign currency accounts, you must first transfer the funds to your home currency account. Then transfer it to a different currency account. Moving funds in QBO uses one foreign currency at a time.

     

    You can also utilize a third-party app that allows you to transfer funds between foreign currency accounts. Just hover to the Apps menu and look for an app from there.

     

    I've added this link for reference in reconciling your accounts so that they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

     

    Keep me updated by leaving a reply if you still require assistance with transferring funds in QBO or managing your accounts. It is always a pleasure to assist you in running your business efficiently. Take care!

    V
    VincentHSAuthor
    November 28, 2022

    Transfer funds doesn't work. I can transfer 10.000PHP tp another PHP account but it doesn't change on my balance sheet. It's still there. 

    I need to deduct the 10.000php and add 1250RMB from somewhere. 

    V
    VincentHSAuthor
    June 13, 2024

    Handling currency exchange in your accounting system is crucial, FPADV. Let's work together to rectify the issue.

     

    Since you paid the JPY bill using your USD account, you need to record this transaction in your USD account as an outgoing payment.

     

    We can set up separate bank accounts for each currency and record transactions in their respective currencies. This approach eliminates the need for a clearing account and automatically handles the exchange rate differences.

     

    You can follow the steps provided by my colleague

    MichaelaS  on how to use a multi-currency in QuickBooks Online (QBO).

     

    Feel free to read these articles for more information about multiple currencies. 

     

     

    I'm always prepared if you have more questions or concerns about handling foreign currency in QBO. Kindly leave a comment below, and I'll promptly lend a hand. 


    This post is almost two years old and still I haven't find a good solution for it... 

    If I have one currency A, and exchange this at an exchange office for currency B.

     

    How can I process this in QB without having it count as revenue or expense?

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