Thanks for posting here in the Community, Tanvii. I'll provide details about recording a fund transfer that involves foreign currencies but not your home currency.
In QuickBooks Online (QBO), recording a transfer that involves multiple foreign currencies requires a clearing account to avoid errors and ensure your record remains accurate.
Since you're recording a transfer but not your home currency, the exchange rate will be slightly different. With that, I suggest manually adjusting the amount when transferring from GBP to EURO to show the exact amount.
Alternatively, you can use an adjusting journal entry to correct this. However, it’s best to consult your accountant when creating an entry for advice on what accounts to use.
Here's how:
- Go to the + New option
- Click Journal entry.
- On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
- On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
- Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
- Enter information in the memo section so you know why you made the journal entry.
- Hit Save and new or Save and close.
Additionally, feel free to read these articles for more information about multiple currencies in QuickBooks Online:
Let me also share this handy material you can read that contains details on personalizing your report to meet specific accounting needs: Customise reports in QBO.
Let me know if you have any other questions about transferring funds to a different currency. I'm always here to help. Have a good one!
