TPH Global

How to Transfer Cross-Currency Between Bank Accounts

If you want to transfer money between two bank accounts with different currencies you will need to set up a Cross Currency Conversion accounts, an Exchange Rate Difference account, and complete two journals: 

Follow the steps below: 

In this example, we will be transferring £100,000 GBP to €112,189.24 EUR 

 

In your Chart of Accounts window: 

  1. Setup a Cross Currency Conversion Balance Sheet Account for Currency 1 (e.g GB)
  2. Setup a Cross Currency Conversion Balance Sheet Account for Currency 2 (e.g EU)
  3. Setup an Exchange Difference nominal account (e.g. EU)

Then you will need to record two separate journals: 

Note: DO NOT journal a transfer between currencies in the same Journal (USD and GBP) as this will throw out your consolidated Trial Balance. 

Journal 1 

  1. Transfer native GB amount from Master Bank Account (GB) to Cross Currency Account 1 (GB)

 

Journal 2 

  1. Transfer the equivalent native amount in the second currency from Cross Currency Account 2 (EU) to Bank Account 2 (EU) at the exchange rate you have listed in Eclipse under Control Table > Currencies.

example:  £100,000 x 1.11729(exc rate) = €111,729 

 

For more information, visit: https://tphglobal.atlassian.net/wiki/spaces/TPHCS/pages/1689747808/How+to+transfer+cross-currency+between+bank+accounts

If you need further assistance to do this, please don’t hesitate to reach out to your account manager at TPH Global, or our support department at: support@helpdesk.tphglobal.com.