QuickBooks Asia

Foreign currency journal

Either MoneyWorks or QuickBooks can't do the expenses journal in SGD (foreign currency) when your home currency is set to USD.

In either software, only Bank, Accounts Receivable and Accounts Payable account can be in foreign currency. All other accounts will be default to home currency.

When passing a journal in QuickBooks in SGD (Home currency set as USD) for:

Debit Utilities expenses (USD currency type): 1000.00

Credit Accrual - Expenses (USD currency type): 1000.00

A warning message will be prompt:

"The currency of the journal entry must either match the currency of the accounts selected or be your home currency."

Blank, Asterisk and a tick

Software: QuickBooks accounting software

In the Bank register, user often see blank, asterisk or sometime a tick in the column between the Payment and Deposit column. What are those asterisk and tick mean?

When transactions were being entered via Deposit, Received Payment, Pay Bill, Write Cheque or Journals that involved Bank account will be consolidated in the Bank register.

An asterisk means you had highlighted this transaction in the Bank Reconciliation, you can consider that as a Pending item to reconcile.

A tick means this transaction had already been reconciled.

A blank means nothing had been done to this transaction. It neither marked as pending item in reconciliation nor reconciled.

 

Capturing Surcharge from Credit Card

Software: QuickBooks

Some users who use QuickBooks in retail business, having difficulty in capturing the surcharge from the credit card company when customer made payment to you via credit card. To simplify the process, I use undeposited fund account in QuickBooks to resolve the surcharge issue.

I use the Sales Receipt to capture the sales and set the “deposited to” account to “Undeposited Funds” account. The double entry for this transaction will be debiting Undeposited Funds account and crediting Sales account. Undeposited Funds account is a system account, when you create a new company file, this account will be automatically created in your chart of account list.

Next, from the Banking menu, select Make Deposit. You will see the amount received from Sales Receipt shown in the Payments to Deposit window. Highlight the deposit and click the OK button to move your deposit into the Make Deposit window.

Ensure the Date and the Bank account in the Deposit To field is correct. Add the surcharge expenses account into the From Account field; and enter the surcharge amount (negative value). 

In my case, the original sales amount is $2,750.00, less out the surcharge of $55.00 and the actual deposited amount into the Bank is $2,695.00. The double entry for this transaction will be debiting Bank account $2,695.00, debiting Surcharge expense account $55.00 and crediting Undeposited Funds account $2,750.00. 

From the Profit & Loss report, you can see the Surcharge amount, $55.00, showed in the Expenses section and bank account will show just $2,695.00 instead of the original deposited amount of $2,750.00 collected in the Sales Receipt. So, it will be easier when doing Bank Reconciliation.

 

How to read your Bank Reconciliation report?

In the Bank Reconciliation report there are three balances which you need to take note of:

• Beginning Balance
• Cleared Balance
• Register Balance

 

Beginning Balance is your physical bank opening balance.  In your Bank Statement usually will show as Opening Balance or Balance brought forward.

Cleared Balance is your physical bank closing balance. In your Bank Statement usually will show as Ledger Balance or Balance carried forward.

Register Balance is your Balance Sheet ending balance. You are able to see this balance figure in either your Balance sheet or Bank Register.

Usually the amount in Cleared Balance will not be the same as the Register Balance. This is because of the un-presented cheque (cheque recorded in your QuickBooks but bank have not clear this cheque) or un-presented deposit (deposit recorded in your QuickBooks but bank have not clear this transaction).

When doing your Bank Reconciliation, this month’s Cleared Balance will be your following month’s Beginning Balance. 

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