This guide addresses a specific multi-currency challenge in QuickBooks.
The QuickBooks Limitation
QuickBooks has a limitation: it doesn't allow you to directly match foreign currency invoices or bills against a bank transaction recorded in a third foreign currency.
The issue often occurs in the following scenario:
You have sales in SEK (Swedish Krona) or PLN (Polish Złoty).
Amazon converts these SEK or PLN settlements into EUR (Euros) for payout.
Your QuickBooks home currency is set to GBP (British Pounds).
This creates a three-currency situation (e.g., SEK sales → EUR payout → GBP home currency). Consequently, your EUR bank account in QuickBooks can only be directly reconciled against entries also denominated in EUR.
Link My Books sends your settlement data to QuickBooks in the original currency of the transactions (SEK/PLN). These SEK/PLN entries cannot be directly matched to your EUR bank account transactions within QuickBooks without specific handling.
Long-Term Solutions
For a more permanent solution, consider these options if they are feasible for your business:
Adjust Amazon Payouts: If possible, change your Amazon settings to receive payouts from SEK or PLN sales directly into your GBP bank account.
Dedicated Currency Bank Account: Set up a dedicated SEK (or PLN) bank account (e.g., using a service like Wise) to receive these funds in their original currency. This can simplify the accounting process.
Short-Term Workaround in QuickBooks
As a short-term workaround within QuickBooks, some users have found the following approach helpful. This involves using a clearing account for the original settlement currency:
Set Up a Clearing Account: Create a new bank or clearing account in QuickBooks. This account should be denominated in the original settlement currency (e.g., SEK or PLN).
Adjust the Journal Entry from Link My Books: When Link My Books sends the settlement data, it typically creates a journal entry in QuickBooks. You may need to edit the line in this journal entry that represents the bank transfer or deposit. Change this line so that it posts to your new SEK (or PLN) clearing account, instead of your EUR bank account (or any other default).
Record the Transfer to Your GBP Account: Next, record a transfer in QuickBooks. This transfer should be from your newly created SEK (or PLN) clearing account directly to your main GBP bank account. The amount for this transfer should correspond to the funds as they were eventually received into your GBP bank after all currency conversions by Amazon and/or your bank.
This specific workaround becomes more complex if you hold the EUR funds (received from Amazon) in your EUR bank account for an extended period without immediately converting and reconciling them to GBP. The steps outlined above are primarily for scenarios where the funds are ultimately reconciled against your GBP balance. We do not currently have a documented, straightforward solution for long-term EUR holding in this particular multi-currency situation within Link My Books and QuickBooks using this method.
We Recommend Seeking Professional Advice
Multi-currency accounting can be complex. We strongly recommend discussing this scenario with your accountant or a qualified QuickBooks advisor. They are best placed to help you implement the most appropriate setup for your specific business needs and ensure your bookkeeping is accurate.
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