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markatmakinity
Level 2

Booking Customer Refund in foreign currency

Hello-

I have QBK with a Euro denominated account. My home currency is Euro. I have two bank accounts in QBK. One is Euro and one is USD. I have an online bank and two accounts at the bank. One in Euro and one in USD. Please understand this part.

 

I invoiced a customer that I have set up and the customer is a Euro paying customer. The customer paid their invoice. I had to cancel the transaction and so have to issue the customer a credit and repay them. The customer paid 1,100 Euros. I created a customer credit note for 1,100 Euros. I paid the customer 1,000 Euros from my Euro bank account and so created a Cheque for 1,000 Euros in QBK. I paid the remaining 100 Euros from my USD bank account ($120 USD) and now need to represent the payment of $120 USD in the Euro equivalent. Completely understand me until now?

 

In QBK, I select New Cheque and select my customer (Euro denominated) and then try to select my bank account for paying USD to reflect the outgoing payment of $120 USD in its Euro equivalent. QBK will not let me do this. How can I do this and then have QBK bank account reconcile with my real online bank account? I know the Euro equivalent but the real funds came out of my USD bank account and I need to reflect that via QBK.

5 Comments 5
CharleneMae_F
QuickBooks Team

Booking Customer Refund in foreign currency

Thanks for sharing more details about your concern, markatmakinity.

 

I'm here to share some insights about giving a refund to a customer using different currencies in QuickBooks.

 

When providing a refund, the transaction or home currency must match with the account. To ensure that the amounts will reflect correctly, I'd suggest manually calculating them using the same currency.

 

For further guidance with the process, I'd suggest checking this article: Void or Refund Customer Payments.

 

Additionally, I've added our Reconcile workflow for reference. This will guide you in making sure the QuickBooks amounts match your real-life bank and credit card statements.

 

In case you'll need assistance in dealing with your multicurrency transactions, don't hesitate to get back to this thread. We're always here to help you.

markatmakinity
Level 2

Booking Customer Refund in foreign currency

Hello and thank you for your note.

 

Please re-read my message above and understand my issue. I cannot simply calculate an amount, as I will then have an imbalance in my bank accounts. Unless you can guide me through how to reconcile such a difference.

 

Still need support on this and have several USD transactions where Euros were sent out of my USD bank account that I need to apply Euro to either bills or invoices/credits. Please help

BettyJaneB
QuickBooks Team

Booking Customer Refund in foreign currency

Help has arrived, @markatmakinity.

 

You can reconcile your bank account, which contains the USD transaction for the refund together with the Euros that was applied to the invoice.

 

I'll guide you on how to perform this process. Let's start with creating a Creditors Account to handle the foreign currency that you created for the original purchase bill.

 

When matching and categorising your bank feed, select the deposit and the customer together with the foreign currency creditor account. Know that you may need to give the home currency account and the foreign currency account numbers so you can easily select each one.

 

Once done, enter the foreign currency value so that the exchange rate is adjusted and added. Be sure to add this transaction as NO VAT under the suppliers' credit, if using VAT in QuickBooks.

 

Then, finish them like you normally do, create a check select the supplier and add both the deposit and supplier credit. To guide you in categorising and reconciling your accounts, please see this link: Learn how to review downloaded bank and credit card transactions and put them in the correct account...

 

To add up, I'm also adding this great reference that provides information about the exchange rates to be used for multi-currency in QBO: Learn about exchange rates in QuickBooks Online.

 

If there's anything else that I can help you with please let me know in the comment section down below. I'll be always around ready to assist you.

markatmakinity
Level 2

Booking Customer Refund in foreign currency

Hello Betty Jane,

Thank you for your offer of help. Is there any chance of connecting via Zoom or another tool where you might look at my situation with me? I have already set up bank accounts as you suggested. The issue here is that I have one customer that I have created a customer credit for for the full amount of return (in Euros as supplier is Euro) and have registered the partial payment in Euros. The remaining amount returned to our customer was sent from our USD bank account and I am trying to reflect the decrease in USD QBK bank for the payment and associate it with our customer, but cannot as they are EURO denominated.

This is also what I am facing with about five other transactions where we either received payment or made payment from our USD online bank account to a EURO customer or supplier and I now need to reflect those payments in QBK. If I reflect them from the Euro QBK account, there will be a reconciling issue to the USD bank account in QBK. Not sure how to handle that as have not reconciled in QBK before and have that ahead of me. Trying first to just get the entries into QBK that show we have completed financial transactions.

My email is [email address removed] and my phone is [phone number removed]. I am located in Barcelona Spain. Sharing all of this in the hope that we might be able to share a screen and interact to solve the above. I have been stuck here for more than a week trying to resolve.

Thank you for trying to help.

Mark

AlexV
QuickBooks Team

Booking Customer Refund in foreign currency

Hi markatmakinity!

 

I'd like to contact you and do a screen share but we're unable to do so cause we have limited access. Please reach out to our Customer Support Team so they can take a look at it:

  1. Click the (?) Help icon and enter Talk to a human (then type it again when prompted).
  2. When asked by the bot, enter "Multi-currency".
  3. Select I still need a human, then proceed with Contact us or Get help from a human.
  4. Choose a way to connect with them.

 

In regards to the refund, as mentioned by my colleague, we're unable to create a refund transaction or expense if the currency isn't matched. What I can suggest is to record the entire refund using the Euro account. Then, make a transfer from USD bank to Euro account.

 

Here's how to record a transfer:

  1. Go to the + New icon and select Transfer.
  2. Select the USD account as the Transfer Funds From and Euro account as the Transfer Funds To.
  3. In the Transfer Amount field, enter the amount deducted from your USD account.
  4. Tap Save and close.

 

If you need help in reconciling the account, check this link: Reconcile an account in QuickBooks Online.

 

Leave a reply again if you need anything else. Take care!