Can I accept credit card payments in a foreign currency when using Intuit Merchant Service (IMS)?
Last updated: Sep 07, 2015
Article ID: HOW15645
Using Intuit Merchant Services with a Multicurrency File
Intuit Merchant Services can be used with a multicurrency file as long as the home currency in the company file is Canadian. In addition, all payments are processed in Canadian funds, therefore Intuit Merchant Service will only process payments for customers set up as Canadian currency customers. Intuit Merchant Service does accept US credit cards for payment, although the payments remain to be processed in Canadian dollars.
To process payments for US customers in Canadian dollars
There are 2 options:
Have all US customers that you wish to receive payments for using Intuit Merchant Services set up as Canadian currency customers. When entering transactions for these customers, calculate all multi-currency conversions manually outside of QuickBooks and then enter transactions into QuickBooks in Canadian funds.
Enter the payment in Canadian dollars and use General Journal Entries to convert the payment to US dollars and close the Invoice. The steps required are below:
1. Create a new generic Canadian currency customer named "US Payments"
2. Create an Other Current Asset Account named "Wash Account"
3. Receive a payment for the new "US Payments" customer in Canadian funds equivalent to the Canadian value of the amount owing. (This CAD amount can be determined by looking at the original Invoice for your US customer, the CAD value is on the bottom right corner of the invoice.)
a. Go to Customers, select Receive Payment, select the new US Payments customer and enter the amount in Canadian dollars.
b. choose the appropriate payment method (Visa, MC, American Express), leave the option for overpayment Leave the credit to be used Later selected.
c. In the memo field enter the US customers name and the invoice number that the payment pertains to.
d. Enter the credit card information as required to process the payment and save the transaction.
Note: These steps have received a payment for the correct amount in Canadian dollars. You will need to complete the next steps to apply that Canadian payment to the US Invoice and close both the Canadian payment and the US Invoice.
4. Create a General Journal Entry to move the funds to the Wash Account created in step 2.
a. Go to Company, select General Journal Entry.
b. In the first line choose your Canadian Accounts Receivable account, enter the amount processed in step 3 in the Debit column, enter the new US Payments customer in the Name column.
c. on the second line choose the Wash Account created in Step 2, enter the amount processed in step 3 in the Credit column.
d. Click Save and New
5. Create another General Journal Entry to move the funds from the Wash Account to your US Accounts receivable
a. The currency for the entry should be Canadian Dollars and verify the exchange rate is the same as the original invoice.
b. In the first line choose your US Accounts Receivable account, enter the amount processed in Step 3 in the Credit column, enter your US customer in the Name column.
c. on the second line choose the Wash Account created in Step 2, enter the amount processed in Step 3 in the Debit column.
d. Click Save and Close.
6. Apply the credit created to the US customer's open invoice to mark the invoice as paid.
a. Go to Customers, select Receive Payments.
b. Choose the US customer, highlight the invoice that will be paid, click on Discounts & Credits, choose the credit created by the General Journal Entry in Step 5. (The amount should now show in US dollars). Click Done
c. Click Save & New
7. Apply the payment entered in Step 3 to the debit created by the General Journal Entry in Step 4 to clear the payment.
a. Choose the customer US Payments, highlight the Invoice (debit) that will be paid, click on Discounts & Credits, choose the credit created by the General Journal Entry in Step 4. Click Done
b. Change the payment method to Cash. (If desired create a new payment method called "Paid by US CC", QuickBooks will not allow you to save a transaction of zero dollars as a credit card when using IMS)
c. Click Save & Close