Multi currency, what am I doing wrong?

1

Hello,

I have a based currency set to EURO

I have a bank account in EURO but received a bill in USD, I have set the multi currencies exchange rate but nowhere in the receipt I can enter my price and USD and have it converted into EURO(with the gain and loss recorded).

Could you please let m know how does this works?

Or perhaps I need to create a “fake” account in USD, do the bill from there and then transfer the money from the EURO to the USD account?

Thank you for your help.

2

Ok here is what I did:

I created a second bank account called “Bank USD” but did not tick the “this account is maintained by a financial institution”(Hope this is right as I do not have real USD accounts). I entered my bill in this account in USD, then from the EURO account, created a transfer from EURO (from the main bank) to “Bank USD”, in the profit and loss, I can now see the gain/loss.

Is this the right way of doing it or is there a much easier solution?

If this is correct from the above, what will be the difference between clicking the finanacial institution tick or not clicking it? Any difference in reports?

Thank you.

3

Is this a once off or going to be a regular occurrence. If a once off, just recorded the bill in Euros when paid.

But perhaps you need to clarify first. You state that you “received a bill in USD”, this implies a purchase / expense, then you state “nowhere in the receipt I can enter my price” where this implies a sale /income, so are we dealing with a customer or a supplier.

NO - this is totally wrong, one should never ever create “fake” accounts - especially bank accounts.

If you must - create the supplier as USD and create the Purchase Invoice, then when you do the Spend Money - Accounts Payable + Supplier enter both the USD & Euro amounts.

4

Yes it is going to be at least 3 to 4 invoices per month in USD to EURO.
Just tried it and it works, I see, so each time I have to recreate the purchase invoices from my supplier into the system in their own currencies. I would not have thought of this way of doing it to be honest.

Thank you so much!