It's good to see you here again, Hubprofi.
I'll help you link the payment of your bill (supplier invoice) using another currency.
When recording payments from foreign currencies, you can only use the home currency bank account or the account with the currency that matches the Invoice/Bill.
First off, you'll need to turn on your Multicurrency feature to make payments with a foreign currency.
Next, we'll create a new dummy bank account in the home currency to facilitate the movement between 2 different currencies.
- Select the Gear icon, then select Chart of Accounts.
- Select New
- Under the Account Type column, select Cash and Cash equivalent. Select Cash on hand beneath the Detail Type column. Then, below the Name column, type in "Dummy Bank."
- Ensure that it is in the home currency before saving and closing.
Then, record the payment of the foreign bill (supplier invoice) in the Pay Bills section and set the Deposit To field to dummy Bank. Take note of the home currency amount displayed at the bottom right before saving the transaction.
Next, we'll have to transfer this payment made from the original bank to the dummy bank account:
- Select + New.
- Choose Transfer.
- Beneath the Transfer Funds From column, select Dummy Bank from the drop-down arrow.
- Under Transfer Funds To, select the bank you'll use for payment from the drop-down arrow.
- Select the currency of the bill from the drop-down arrow below the Currency column.
- From the Transfer amount column, type in the amount.
- Under the Exchange rate, the exchange rate will automatically appear. You can manually change the rate.
I'll share this article from the Singapore region. However, applicable to the steps provided: Receiving and making payment for foreign invoices/bills with a foreign currency.
After performing the steps above, you can match the Journal Entry you created for that payment transaction. You can read this article for more information: Categorise and match online bank transactions in QuickBooks Online.
Feel free to check these articles for more information about multiple currencies.
Click the Reply button to this post if you have further questions about matching transactions with different currencies. We'll be willing to lend a hand. Have a good one.
