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  #1  
Old 12-05-2011, 01:08 AM
reailia reailia is offline
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Exclamation Multi-currency -transfer cash between GBP and EURO account

Hi Everyone,

This is my first post here.
I have a problem in understanding how the Multi-currency option should work.
Here is what I am trying to do:

I have three bank accounts in following currencies
GBP
EURO
POLISH ZLOTY

For UK Accounting purposes the Main Currency is GBP.

I transfer funds between all three accounts and pay bills in those currencies.

When I created multi-currency account I have noticed, that I am not able to enter transactions directly in the REGISTER in currency other than in GBP.

I am able to record deposits in the Bank with the foreign currency, using the RECORD DEPOSIT but how do RECORD A TRANSACTION?

I learned yesterday, that there are 3 ways of transferring funds between different currency accounts:

1. Create a vendor for the foreign bank and write a check to that vendor where the account is the foreign bank itself
2. Use the Transfer Funds function
3. Use a General Journal Entry

For detailed info please see this link http://www.qbgarage.com/blog/how-can...nt-currencies/

It seems however, that I can only transfer funds from the Main Currency account - GBP - to EURO or PLN, but not from EURO to PLN.

Is this right?

Also, how do I record a transaction in a foreign currency register?

I will appreciate your help very much
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  #2  
Old 12-05-2011, 03:18 AM
RobJoy RobJoy is offline
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Using the register to enter everything is not a great idea anyway - better to use the QuickBooks function designed for what you want - you'll get prompted to get VAT right for instance. Method 1 is the one I'd use for bank account transfers.

"Write Cheque" should really be called "Write a transaction that takes something out of my bank account", but neither Intuit nor I can think of a succinct title. So to move money from Currency A to Currency B create a cheque on the A account with the B account under the Expense tab, no VAT. You'll need to figure out the exchange rate to get the right number of B's.

I don't see why you shouldn't be able to write cheques from the Euro account to PLN this way. I don't have a test file to hand at the moment, but if you find you can't do that for some reason, create a dummy GBP bank account called Contras, and create cheques from Euro to Contra then Contra to PLN - nuisance, but it will do the job.
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  #3  
Old 12-05-2011, 11:30 AM
qbqcca qbqcca is offline
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Join Date: Apr 2010
Location: Montreal, Canada
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Quote:
When I created multi-currency account I have noticed, that I am not able to enter transactions directly in the REGISTER in currency other than in GBP.
You should avoid at all cost entering transactions directly into the REGISTER!

Transactions should always be entered via the appropriate method e.g.:-
Transfer Funds, Write Cheques, Pay Vendors, Make Deposits.

Quote:
I learned yesterday, that there are 3 ways of transferring funds between different currency accounts:

1. Create a vendor for the foreign bank and write a check to that vendor where the account is the foreign bank itself
2. Use the Transfer Funds function
3. Use a General Journal Entry
1. Not advisable
2. This is the best method, as it is designed to accomplish what you are trying to do.
3. Should only be used for entries for which there are no other method on entry e.g.:- Depreciation, Prepaid etc.

Quote:
Also, how do I record a transaction in a foreign currency register?
You should avoid at all cost entering transactions directly into the REGISTER!
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  #4  
Old 04-18-2012, 07:05 PM
reailia reailia is offline
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Join Date: Dec 2011
Posts: 2
Dear RobJoy and Qbqcca,

I reply with much delay, but thank you both for your reply and advise.

So here is what I have done:

I created a Currency Exchange Account as Bank - its in GBP

Whenever there was a transfer from e.g. Bank Account in Euro to one in Polish Zloty, I would use a Transfer Funds function to send the money from Euro to Currency Exchange Account and then from there to Polish Zloty.

This seems to work for me very well.

Thank you both again for your help

All the best
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