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Foreign currency bills and payments syncing to QuickBooks for Windows

Multi-currency bills and payments will now sync from Bill.com to QuickBooks for Windows (QBW), even if you don’t have multi-currency enabled in QBW! 

How will it work?

  • When you create a bill in Bill.com in a currency other than US Dollars, it will sync to QBW in US dollars, based on the current exchange rate
  • When a payment is applied to the foreign currency bill in Bill.com, the payment will sync to QBW in US dollars, based on the original bill’s exchange rate
  • Bills and payments created in QBW for a vendor with a default bill currency set to something other than US dollars in Bill.com, will not sync to Bill.com
  • Because the exchange rate will likely differ between the time of the bill creation/sync and the payment, a new sync preference will be required, called “Exchange rate gain/loss account.” This will be the GL account to which any variance due to differing exchange rates will sync

    mc_qbo_preference.png

How will it sync?

Here are some examples on how the bills, payments and funds transfers will sync if the exchange rate (FX) changes between the time of the bill sync and the payment sync, using the Exchange rate gain/loss account.

If the exchange rate (FX) decreases:

  • 100 Euro bill in Bill.com at an FX rate of 1.2 syncs to QBW as $120:
    • Bill: debit entry of $120 to expense account(s), credit entry of $120 to AP account
  • FX at time of payment is 1.0, so a $100 USD payment is created in Bill.com, and a $120 payment syncs to QBW (the bill’s original FX rate)
    • Payment: debit entry of $120 to AP account, credit entry of $120 to money out clearing account (payment record in QBW is $120, so entries are $120)
    • Funds Transfer: debit entry of $100 to money out clearing account, credit entry of $100 to the bank account used for the payment (actual money moved in Bill.com is $100, so the funds transfer records are $100 as they are separate from the actual payment record)
    • FX rate gain/loss: credit entry of $20 to the FX rate gain/loss account set in sync preferences, debit entry of $20 to the money out clearing account

If the exchange rate (FX) increases:

  • 100 Euro bill in Bill.com at an FX rate of 1.2 syncs to QBW as $120:
    • Bill: debit entry of $120 to expense account(s), credit entry of $120 to AP account
  • FX at time of payment is 1.5, so a $150 USD payment is created in Bill.com, and a $120 payment syncs to QBW (the bill’s original FX rate)
    • Payment: debit entry of $120 to AP account, credit entry of $120 to money out clearing account (payment record in QBW is $120, so entries are $120)
    • Funds Transfer: debit entry of $150 to money out clearing account, credit entry of $150 to the bank account used for the payment (actual money moved in Bill.com is $100, so the funds transfer records are $100 as they are separate from the actual payment record)
    • FX rate gain/loss: debit entry of $50 to the FX rate gain/loss account set in sync preferences, credit entry of $20 to the money out clearing account

After all of the entries above, you can see that the AP account entries balance with each other, as well as the entries to the money out clearing account.