DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Multi-Currency - Transferring Funds between Bank Accounts


#1

Sometimes, we move money from our EUR bank account to our GBP (Base Currency) bank account.

Effectively, we sell, say, EUR 700 that the bank debits from our EUR account and buy, in this case, GBP 566.53 that is deposited to our GBP bank account.

However, when we try to enter this into Manager, we do not appear to be able to access two different bank accounts in the same transaction. What is the correct way to enter a transaction of this nature into Manager?


#2

This scenario is not handled very well. There are some improvements in the pipeline which will make this more streamlined. For the time-being, I propose this:

  1. Create new general ledger account called Inter-company transfers
  2. Go to EUR bank account and spend 700 EUR which you categorize to Inter-company transfers
  3. Go to GBP bank account and receive 566.53 GBP which categorize to Inter-company transfers

Due to currency exchange rate being slightly different in Manager than what your bank has used, you will end up with small discrepancy amount in Inter-company transfers. This would be currency gain/loss.

I’m going to update this topic soon when improvements regarding multi-currency are implemented. It’s high priority to have more elegant solution in place.


#3

Thanks - Just tried it and it works exactly as you say.

I did the transaction and was left with a Balance of -7.82 in Intra-Company transfers. Is it ok to let this accrue or should I journal it to Currency Gains (losses) ?

We are really finding Manager great to use and acceptable to our Accountants. We now have users entering data directly from Canada, Spain, UK and USA.


#4

FYI - I created Intra-Company Transfers as an Equity account.


#5

I’m going to update this topic soon when improvements regarding multi-currency are implemented. It’s high priority to have more elegant solution in place.

Do you have an ETA? This would be solved by allowing to specify override currencies at the account level in a journal, as in my other post (Enter a foreign currency payment from/to a bank account in another currency?).


#6

Looks like this was added on 24/dec according to the change logs. Merry Christmas!

Seems to work ok. You need to enter in the amount in the receiving currency. It’ll be nice if you could put in both the sending and receiving amount when entering this info instead of manually calculating the exchange rate later. Requires lots of manual calculating and clicking around currently.


#7

In the latest version (15.0.67), you can now set the source and destination amount on bank transfer form if accounts are in different currency.


#8

This type of conversion will be very useful for sales/purchase invoice transactions instead of creating a receipt then click on blue colored exchange rate and change it (too long process).

Instead of all that can you please arrange something like how you made transferring funds easy. :smile:


#9

I know, I’m planning to phase out the current method of overriding exchange rates in favor of being able to do everything within original transaction…


#10

The latest version (15.1.5) allows to set foreign currency amount on the transaction itself rather than making you to go to override exchange rate elsewhere.

For example, when you receive money from USD customer into a EUR bank account, you can specify the equivalent USD amount on the same screen where you record receipt of EUR.


#11

Is this convert the amount with exchange rate?


#12

Hi - The 1000 (entered by you) in the field below the word Amount is the amount you have received expressed in the currency of the bank account you are using. The 1070 (entered by you) in the field to the right is the actual amount received, expressed in the currency in which it was sent. The exchange rate you actually achieved for this transaction was €1.00 = $1.07. If this rate is different from the daily rate you have entered in Settings - Exchange Rates, then the difference in value will be automatically posted to Currency gains (losses).

This process now appears to be consistent throughout the entire Manager suite of programs.

We use this functionality to easily and accurately record transactions that go through multiple currency exchanges.

Ian