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C
ckzraymond
November 25, 2025
Question

Transaction with Foreign Exchange Fees

  • November 25, 2025
  • 1 reply
  • 5 views

I'm new to non-profit (although in this case, I don't think that matters) and new to expenses paid in other countries with foreign exchange fees.  If someone can either point me in the right direction to a video where I can get this information or explain how to process this one transaction that would be so helpful.  The transaction was done in foreign country, Thailand, using a debit card from the US, so the charges have been converted to USD.  It's an expense for a ride share, so I will use the category Travel and under that is Taxis and shared rides for the main expenses, but I assume I should create a new expense to track the foreign exchange fees unless there is already a category in QB Online for that that I missed?  I am attaching two screenshots.  One is the receipt for the transaction and the other one is the bank transactions that came through.  My current plan is to put the three foreign exchange fee amounts in a foreign exchange expense category and the other three amounts into the Travel | Taxi and Ride Shares expense category.  It only allowed me to do one attachment so I included the one with the QB transactions, but can include the receipt in a future message/response.

Thank you for any direction you can provide me.

 

1 reply

MsNorthPND1881
MsNorthPND1881QuickBooks Team
QuickBooks Team
November 25, 2025

Hello, Raymond. Thank you for reaching out with your concern regarding handling foreign expenses in QuickBooks Online. It’s great that you’re proactively seeking clarity, especially since processing transactions with foreign fees can seem a bit tricky at first. Based on the details you’ve provided regarding the ride share expense in Thailand and its corresponding foreign exchange fees. Let’s ensure everything is documented accurately and aligned with best practices.

 

When foreign transactions involve exchange rate fees that are processed separately by your financial institution, it simplifies the recording process. In your case, the main vendor cost (the ride share expense) should be categorized appropriately, such as under Travel | Taxis and Ride Shares. The foreign exchange fees can be tracked as a separate transaction, which would typically fall under a category such as "Foreign Exchange Expense," "Bank Fees," or a similar account in QuickBooks Online. If you’re unsure about the exact account to use, consulting an accountant is highly recommended to ensure everything is categorized correctly and accurately.

 

To further streamline the process, you may want to assign the vendor profile a USD currency in QuickBooks Online. Doing this ensures that future transactions and reporting align with your home currency, avoiding exchange rate gains or losses when processing foreign invoices. However, if you plan to frequently make payments to vendors in other countries, you could also set their profile to reflect their native currency, and QuickBooks will automatically handle the exchange rate calculations in the background.

 

I hope this explanation helps simplify things for you. Proper categorization and documentation are key for maintaining accurate and organized financial records. Please don’t hesitate to reach out if you have any further questions or need additional guidance. I’m happy to help anytime. Have a fantastic day! 

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