Learning QuickBooks Online | Focus on Bookkeeping
Recording QBO Foreign Deposits

by L. Kenway BComm CPB

Recording Foreign Wire Transfers In QBORecording Foreign Wire Transfers In QuickBooks Online

How do you record a QBO foreign deposit when the customer paid the invoice by wire transfer with service fees deducted by your bank?

This is a complex transaction because it involves multi-currency and receiving amounts due with service fees deducted.

Warm up your tea and let's get started.


6 Part QuickBooks® Primer
Click on any image below to go to the chat.

How to use QuickBooks to create customized reports.

Part 1

Accounting System Flowchart

Learn How To Customize Reports

Closing Procedures, Tracking GST/HST/PST

How to record a foreign wire transfer in QBO

Part 2

Recording Foreign Wire Transfers
in QuickBooks Online 

Part 3

Setup Meals Sales Tax Code
in QuickBooks Online Canada


Part 4

Setup Self Assessing PST Codes
in QuickBooks Online 

Part 5

QuickBooks Desktop to Online
Conversion Problems 

Learn How To Use QuickBooks

Part 6

Beginner's Tips on A/R, A/P, Banking

Period End Closing Adjusting Entries

Shortcuts, Beginner's FORUM

QuickBooks® is a registered trademark of Intuit Inc.
Screen shots © Intuit Inc. All rights reserved.

Click here to subscribe to QuickBooks Online Canada. I do not receive any commissions for this referral.

Step-by-Step Instructions For QBO Foreign Deposits Data Entry

Step One - Find the invoice you want to receive payment on in the customer module. In my example we are receiving a payment for invoice #1018 billed to Blakey Group for $1,500 USD (U.S. dollars). My home currency is Canadian dollars (CAD).

QBO Customer SubledgerQuickBooks Online Customer Subledger

Step Two - Click on receive payment.

Step Three - Fill in the form as follows:

  • In the exchange rate field, enter the exchange rate your bank shows the transaction was converted at. We are using 1.3256 in this example.
  • Enter the date you received the funds
  • Select the payment method. I like to add a new item called "Wire Transfer".
  • In the Reference Field I like to put something relevant to me usually related to how I think I would look it up if I need to retrieve the transaction.
  • Deposit the wire transfer to the account called Undeposited Funds. It is very important that you do not deposit this to the bank directly. If you do, we won't be able to account for the service fees in one transaction which makes doing the bank reconciliation a bit tougher than it needs to be. Here I would probably make a reference to the bank deposit amount of $1963.40 CAD.
  • Enter the amount received in USD not CAD. Your CAD amount is recorded by you inputting the correct exchange rate amount.
  • I usually make a note here on the wire transfer details. For example - $1500 USD = $1988.40 CAD. Wire fees $25.00. Net bank deposit $1963.40 CAD.
  • Attach the wire notice or anything else you have to support the transaction in the attachments box.

QBO Receive a Foreign Invoice PaymentQuickBooks Online Receive a Foreign Invoice Payment

Step Four - Click on the Quick Create menu at the top of your screen (the + sign) and select Bank Deposit.

QBO Quick Create MenuQuickBooks Online Quick Create Menu

Step Five - Fill in the form as follows:

  • Select the account where the wired funds were deposited. In our example, the funds were wired and deposited into our Canadian checking account.
  • Select the date they were deposited.
  • Select USD United States Dollar and enter your exchange rate. We are using 1.3256.
  • Under Select Exiting Payments, select the USD invoice amount received. In our case it is $1500.
  • Under Add New Deposits, enter the bank's wire transfer fees deducted from the gross amount prior to the bank deposit. In our example it is $25.00 CAD. You will have to manually convert this amount and enter it in USD. In our example that means that $25 CAD / 1.3256 = $18.86. This amount is entered as a negative number as it reduces the amount of funds you are receiving. Bank fees are exempt from sales tax.

QBO Foreign Deposit Net of Bank FeesQuickBooks Online Foreign Deposit Net of Bank Fees

When dealing with QBO foreign deposits, it is very important to break down what you are doing and THINK as you go. Take the time to understand why you are doing each step to get to your end result. Your newfound knowledge will allow you to book other complex transactions.

It's been great chatting with about bookkeeping today.

It's been great chatting with you .
Your tutor Lake

QuickBooks® is a registered trademark of Intuit Inc.
Screen shots © Intuit Inc. All rights reserved.

Click here to subscribe to QuickBooks Online Canada. I do not receive any commissions for this referral.

QBO Foreign Deposits

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Like this page? Please let Google
know by clicking the +1 button.

 Keep Your  eDocuments Safe And Secure… $7 USD

Your Learning Curve!

Buy Now

Warm up your tea cup and check out these chats ...

Click on image above to read the chat.

Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.

Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.

A Handy Reference

Buy Now