Miscellaneous transactions

Transferring funds to a foreign account

If you want to transfer funds from a local-currency account to a foreign account, do this through the Spend Money window.

1	Go to the Banking command center and click Spend Money. The Spend Money window appears.

2	Click Currency. In the Exchange Rate window, choose the currency of the account into which you want to make a deposit and click OK.

3	In the Pay from Account field, type or select the local currency checking account from which the amount is being withdrawn.

4	Enter the date, amount, payee, and memo.

5	In the Account # (or Name) column, type or select the foreign account into which you want to make the deposit.

6	Click Record.

Entering foreign-currency transactions in a local account

You can enter foreign-currency transactions in a local-currency account. For example, you can accept a check from a British customer in pounds and bank it in a U.S. checking account.

Example

Let’s look at an example of how to accept a foreign-currency check into a local-currency account. Our example uses British pounds. Let’s also assume the exchange rate has changed from 1.65 to 1.80 since you made the original sale.

1	Go to the Sales command center and click Receive Payments. The Receive Payments window appears.

2	Select the customer. The currency for this customer card is British pounds, so the Rate button displays GBP. You have received a check from your customer for £5,000 for an outstanding invoice, and you want to bank it in your U.S. checking account.

3	Process the customer payment in the usual way, but make sure you enter your U.S. checking account when you select the Deposit to Account option.

4	Click Rate to check the default currency rate for the British pound to the U.S. dollar. Change the rate from the default rate of 1.65 to 1.8 and click OK.

5	Enter £5,000 in the Amount Received field and allocate it to the outstanding invoice.

6	Click Record.

Reconciling accounts containing foreign transactions

When you are reconciling your bank statement, the foreign currency transaction amounts listed in your statement will often not match those listed in your company file. This is because the exchange rate used by the bank is different from that recorded in your company file at the time of the transaction.

There are two methods by which you can reconcile accounts containing foreign transactions:

■	If you have your security preferences set to allow records to be changed, simply click the zoom arrow () for the transaction in the Reconcile Accounts window to display the original transaction. Click Rate and change the exchange rate to match the bank statement.

■	If you have the security preferences set so that records cannot be changed, click the zoom arrow () next to the transaction, choose Reverse Check Transaction from the Edit menu, and re-enter the check with the correct exchange rate.

Related topics

■	Transferring money between accounts

■	Reconciling your bank accounts

■	Exchange rates

■	Set up preferences