Reconcile a foreign currency invoice paid in another foreign currency

Here's how to reconcile an invoice that's been fully paid in a currency different from the invoice, and different from your base currency.

In this example, we've used EUR as the currency of the invoice, and USD as the currency of the invoice payment. Our base currency is NZD.

Add a clearing bank account in the currency of the invoice

  1. In the Accounts menu, select Bank Accounts.
  2. Click Add Bank Account.
  3. Enter a name for your clearing account, then click Add it anyway.

    Image of the Find your bank screen, and a dummy clearing account added.

  4. Enter details for the clearing account and a made-up bank account number, then select the currency of the invoice.

    Image of the Enter your bank account details screen, and dummy clearing account details being added.

  5. Click Save.

Record payment of invoice

  1. Open your invoice.
  2. Scroll down to the Receive a payment section, enter the full invoice amount and select the clearing account you set up.

    Image of the Invoice screen, and Receive a payment details being added including the clearing account being selected.

  3. Click Add Payment.

Reconcile the invoice payment

  1. On the bank reconciliation screen, next to the statement line for the invoice payment, click the Transfer tab.
  2. Select the clearing account you set up.

    Image of the bank reconciliation screen, the Transfer tab and a bank transfer being added from the USD bank account to the EUR clearing account.

  3. Enter the invoice amount and click Reconcile.

    Image of the currency conversion details being adding during a bank reconciliation bank transfer.

Your invoice payment is now reconciled, and the clearing account balance will be 0.00. (It doesn't matter that your clearing account isn't reconciled. But you can mark transactions as reconciled if you want to, or archive the account.)