Q/Books - Multi Currency Debtors

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Hi - When receiving payments in Euro's from customers by BACS into a Euro bank account I have found that with Quickbooks I have to create a Euro currency debtor. All well and good until I try and journal this payment received into the GBP Debtor where the invoice which is being paid is sitting ! I can't seem to find a way of doing this even though the amount is crystalised in GBP by the exchange rate.

I guess that changing the currency of the invoice (in QB) is a possibility but seems messy.

I have given up with the helpdesk ! - Any ideas would be appreciated.

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Q/Books - Multi Currency Debtors

    Hi,

    Was this invoice initially raised in GBP? As this is why it would end up sitting on the GBP Debtor side. If this invoice was raised in €'s it would end up entering the € debtor account. Then if your debtor chose to pay in sterling you would have to recieve the payment against the € debtor account but the payment is deposited to your Sterling account, vice versa if it's the other way. Is this what you mean?
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Q/Books - Multi Currency Debtors

    Hi - yes the invoice was raised in £ creating a debit in the debotrs account. The payment was made directly into a euro bank account so I need to show this coming into the euro account and crediting the debtors account. However QB won't let you use a euro bank account with the £ detors which makes sense but even though I know what the £ equivelent is I can't seem to do anything with it. Therefore I end up with the debit in the £ debtors and the credit in the Euro debtors. I wanted to journal it in some way but it doesn't seem an option !

    I love QB but it can be a bit tricky at times !

    Many thanks for your help
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Q/Books - Multi Currency Debtors

    Hmmm, this one is going to be a slight problem, I have had a play around with my QB's.
    Can I just ask why they decided to pay a £ invoice in €'s?
    The only way around it that I can see is to create a € account for the customer in question and raise your original invoice using the same number under the € account for the amount that they paid. You would then need to delete the invoice on the £ account but for Auditing purposes keep the original £ hard copy and the new € hardcopy together just incase you need to show why you have had to do it this way. Then you will be able to match off your customers payment against the invoice. You could do a journal entry but this will not link to the invoice in your customer's £ account. Then in future if they prefer to pay via € just raise it under their € account, hope this helps somewhat :)
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Q/Books - Multi Currency Debtors

    You have been a big help in just confirming that it is tricky. I often worry about posting questions on this forum in case I am being stupid so just knowing there is a genuine problem is a start.

    I am convinced that I have the quirkiest client base going. I have another thread open which it now appears feeds into this one based around how a new client handles their import and export which is the cause of this strange acceptance to invoice in £ but accept payment in Euro. I also have found shipments coming from China into Europe on the strength of the original invoice from the supplier and not my client which has resulted in dummy invoices and all sorts of bodges

    I think that you are right that I will have to engineer this one to a degree. I need to think this through some more but I feel a control account coming on.

    Many thanks

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