We’re a UK company and deal primarily in GBP. We have one client we invoice in USD and for no particular reason, they pay into our EUR account. When I click “receive payment” on the invoice, I can only choose accounts in GBP (or presumably USD, but don’t have any).
QuickBooks has the same restriction. What we did to workaround was create an account called “Transfers Virtual GBP”. I paid the invoice into that account. Then I added a journal entry from “Tranfers Virtual GBP” to “Bank account EUR”.
However, the journal screen seems to be only in GBP. Moreover, when I try creating a journal entry between a GBP and an EUR account, both amounts must be numerically the same. Then when I look at those accounts, I see the numbers the same, but one account is EUR and one is GBP.
I guess I’m missing something. How do I handle this case of being paid in a foreign currency account into yet another foreign currency account?
I pay the invoice to “Transfers Virtual GBP”. Then I add another transaction to that account for the same amount in GBP. Then I “Tag” it as a transfer to another bank account. Now I can enter the EUR amount and it works.
I’m still unclear about the cross currency journal entries though. Is that possible?
As QuickFile is primarily designed with GBP as the base currency, as you’ve experienced, everything is set to GBP in terms of journals, reporting etc.
I like your workaround, and I’m sure we can help you do this in QuickFile too.
You seem to have beaten me to answering your question, so I’ll try and help you from the point you’re stuck at.
Cross currency journals aren’t possible, for the reason that they have to balance and have to be in GBP (the system’s base currency). What are you trying to journal exactly? Perhaps we can suggest an alternative way of achieving this?
OK, in this case I wanted to make a transfer from one account to the other, which works with the method I’ve described above. I don’t have a specific use case for a cross currency journal right now, although I’ve used it in the past in QuickBooks to clear the currency profit / loss from a director’s loan account in a foreign currency.
If it’s just a currency loss/gain you’re looking to record, you can do so by going to the bank account settings and click on the 'Record currency loss/gain movement":
You may find our guide useful too, which explains it in more detail.
