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Syncing multi-currency bills and payments when multi-currency is off in the Accounting Software

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

How will it work?

  • When you create a bill in Bill.com in a currency other than US Dollars, it will sync to QBO, QBW or Intacct 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 QBO, QBW or Intacct in US dollars, based on the original bill’s exchange rate
  • 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“ for syncing bills in foreign currency if you do not have multi currency in your accounting software. 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:

A bill of 100 Euros is created when the exchange rate (FX) is 1.2, resulting in a $120 USD bill in QBO, QBW or Intacct. At the time of payment, the FX rate has decreased to 1.0, resulting in a $100 payment:

Transaction Type Expense Account(s) Accounts Payable GL Account Money Out Clearing GL Account Bank Account GL Account FX rate gain/loss GL Account
Bill $120 debit entry $120 credit entry - - -
Payment - $120 debit entry $120 credit entry - -
Funds Transfer - - $100 debit entry $100 credit entry -
FX rate gain/loss - - $20 debit entry - $20 credit entry

 

  • FX at time of payment is 1.0, so a $100 USD payment is created in Bill.com, but a $120 payment syncs to QBO, QBW or Intacct, due to the bill’s original FX rate
  • Funds Transfer is only $100 as that is the actual true amount of money moved
  • Net difference (gain) of $20 due to decreased exchange rate is accounted for in the FX rate gain/loss GL

If the exchange rate (FX) increases:

A bill of 100 Euros is created when the exchange rate (FX) is 1.2, resulting in a $120 USD bill in QBO, QBW or Intacct. At the time of payment, the FX rate has increased to 1.5, resulting in a $150 payment:

Transaction Type Expense Account(s) Accounts Payable GL Account Money Out Clearing GL Account Bank Account GL Account FX rate gain/loss GL Account
Bill $120 debit entry $120 credit entry - - -
Payment - $120 debit entry $120 credit entry - -
Funds Transfer - - $150 debit entry $150 credit entry -
FX rate gain/loss - - $30 credit entry - $30 debit entry

 

  • FX at time of payment is 1.5, so a $150 USD payment is created in Bill.com, but a $120 payment syncs to QBO, QBW or Intacct, due to the bill’s original FX rate
  • Funds Transfer is $150 as that is the actual true amount of money moved
  • Net difference (loss) of $30 due to increased exchange rate is accounted for in the FX rate  gain/loss GL

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.