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 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 individual Trial Balances

Journal 1

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

Journal 2

4. 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

Pro Tip

After you do the Journals but BEFORE you post them, run a TB and include unposted Journals so you can see the effect on your TB. You could also run a consolidated TB with unposted Journals. Your currency clearing account should clear to zero if you have done the journal correctly.