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V
VincentHS
November 28, 2022
Question

How to process different currencies between accounts

  • November 28, 2022
  • 14 replies
  • 62 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. 

    J
    JoanaCQuickBooks Team
    QuickBooks Team
    June 13, 2024

    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?


    Your patience has been extremely important, and I know that resolving this issue is quite challenging, VincentHS.

     

    First, we must transfer the funds to your home currency account. Then transfer it to a different currency. Moving the funds uses one foreign currency at a time. You can follow these steps to set up a foreign currency conversion account:

     

    1. Go to the Gear icon.
    2. Choose Chart of Accounts and then select New.
    3. For the Account type, select Cash at bank and in hand.
    4. For the Detail type, choose Cash on hand.
    5. Name the account "Foreign currency conversion".
    6. Enter the description like "transferring between multicurrency accounts".
    7. Select the home currency.
    8. Hit Save and Close.

     

    Convert the funds to your Home currency. QuickBooks will automatically handle the conversion when you transfer the funds to the account you created.

     

    1. Select +New.
    2. Click Transfer.
    3. Choose the original account from which you want to transfer funds.
    4. Click the currency of the original account.
    5. Enter the amount you wish to transfer.
    6. In the Transfer Funds section, select the Foreign currency conversion account you created.
    7. Hit Save and Close.

     

    Now, we'll transfer the funds to the desired currency. Here's how:

     

    1. Select + New. 
    2. Select Transfer. 
    3. In the Transfer Funds section, choose the Foreign currency conversion account.
    4. Select the desired currency you wish to convert to.
    5. Enter the amount. 
    6. In the Transfer Funds section, choose the correct account in the desired currency where you want to deposit the funds. 
    7. Select Save and Close.

     

    After these steps, check the transfer. Follow these steps:

     

    1. Go to Banking.
    2. Select the Bank Transactions tab. 
    3. Select the account where you transferred the funds in the desired currency. 
    4. Double-check the account balance to make sure it’s accurate. 

     

    You can also check in the your Chart of accounts: 

    1. Go to Transactions. 
    2. Select Chart of Accounts. 
    3. In the search bar, enter the name of the desired currency account. 

     

    Double-check the account balance and ensure it has been deposited in the correct currency. By following this approach, you'll have a clear record of all the multicurrency funds you've converted, right in your Chart of Accounts.

     

    For easy access, you can refer to this article for frequent inquiries about multicurrency: Frequently asked questions about Home currency adjustments.

     

    Keep me posted if you still have further questions about multicurrency. Take care.

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