Tag Archives: quickbooks accounting software

Refund an overpayment in QuickBooks

Software: QuickBooks Desktop accounting software

You have an option in QuickBooks Desktop accounting software to offset the overpayment received with the outstanding invoices via set credit feature or refund customer the overpaid amount.

Highlight the outstanding sales invoice from the customer payment transaction, click the Set Credit button and select the credit (overpayment) to offset with the invoice. You have to do the offset process a few times if the overpaid amount is supposed to knock off with multiple invoices.

On the other hand, you need to amend the original customer payment (the overpaid transaction) if you need to create a refund to the customer. At the lower left corner of the customer payment window, select the ‘Refund the amount to the customer’ radio button and click the ‘Save & Close’ button to continue with the refund.

Refund from customer payment in QuickBooks

You will see a payment transaction window on the following page, and then select the relevant bank account, payment mode and change the date if required.

Refund overpayment in QuickBooks.png

QuickBooks will update the accounts receivable and bank account once you have clicked the OK button.

Intuit QuickBooks 2019 is available, contact us if you like to upgrade your QuickBooks.

 

QuickBooks foreign currency transaction

Software: Intuit Quickbooks Desktop accounting system

In QuickBooks, only bank, accounts receivable, accounts payable, and the credit card accounts have the multiple currencies option.

After turning on the multiple currencies feature in QuickBooks, you have to set the trading currency in each debtor or creditor profile. So, the related transaction will record in foreign currency.

QuickBooks multiple currency

By default, the foreign currency transaction will pick up the exchange rate from the currency table; however, you can change the exchange rate to match the GST in Singapore dollar which shows on the foreign currency bill.

Local Supplier who billed you in foreign currency has to show the amount before GST, GST, and the amount inclusive of GST in Singapore dollar equivalent. You have to follow the exchange rate shown on the bill instead of the system exchange rate, so to claim the input tax correctly.

For example, your system exchange rate is 1USD:1.3500SGD. You received a US dollar bill from a local supplier shows a GST of US$700 (S$947.10 Singapore dollar equivalent). Then, you record the bill at 1USD:1.3530SGD instead of the system exchange rate. It affects the GST amount in Singapore dollar if using the system exchange rate instead.

Join our training to learn the proper way of recording transaction in QuickBooks.

Intuit QuickBooks Desktop 2019 is coming soon, contact us if you are interested.

How to show transaction currency instead of functional currency in QuickBooks Ageing Report?

Functional currency, also known as Base Currency or Home Currency, is a reporting currency used in businesses. Transaction currency in another hand is a currency used in the transaction such as Invoices, Payment or Receipts, which could be a foreign currency.

You have to convert the transaction amount to the functional currency based on the exchange rate if the transaction is a foreign currency. Software which supports multiple currencies will do the conversion automatically once the exchange rate has set.

QuickBooks accounts receivable

By default, QuickBooks ageing report prints in functional currency. For example, you have an outstanding receivable of US$10,000 at an exchange rate of 1USD:1.3SGD, the receivable report prints S$13,000 instead of US$10,000. You have to customise the report if you want the ageing report show in transaction currency (USD) instead of functional currency (SGD). Select The Transaction Currency’ radio button from the Display tab of the Customise Report wizard allow the ageing report to print in transaction currency instead. You can also do a currency filtering from the filter tab of the Customise Report wizard to limit the number of currency show in the ageing report.

QuickBooks is a very user-friendly accounting system with tons of built-in features and reports cater to small businesses. Join our demo to understand more on how QuickBooks can help you manage your business finance better.