QuickBooks Desktop allows you to track transactions in foreign currency. With this multicurrency feature, you can assign a specific currency type to the following profiles and accounts:
- Price levels
- Bank accounts
- Credit card accounts
- Accounts receivable
- Accounts payable
This article will help you to Set up and use multicurrency in QuickBooks Desktop. For more information about using the Multicurrency feature in QuickBooks, you can get in touch with us at QuickBooks Customer Service Phone Number +1855-565-6250.
|Before turning on Multicurrency
How To Set Up And Use Multicurrency?
Steps to set up and use multicurrency are as given below:
Step 1: Turn On Multicurrency
- From the main menu of QuickBooks, go to Edit > Preferences
- Select Multiple Currencies from the left pane.
- Navigate to the Company Preferences tab and then click on Yes, I use more than one currency.
- Choose your home currency from the drop-down list.
Step 2: Add Foreign-Currency Customers And Vendors
You are only allowed to assign a single currency for a single customer or vendor profile. You have to create new profiles in order to assign a new currency.
- Once you turn on the multicurrency feature then all the existing customers and vendors will be assigned your home currency. You won’t be able to change the currency for names in which the transactions are already recorded.
- You can keep on using these home currency customers or vendors after closing open balances. You can use your foreign-currency customers or vendors for a new sales or purchases you created but you need to use the home currency names continuously until you finish with any current open transactions.
- Customer and Vendor centers can be used to create foreign-currency customers or vendors. If a name is already listed with your home currency then you can assign it using a different name.
To add foreign-currency Vendors or Customers:
- From the main menu, go to Customers (or Vendors) > Customer Center (or Vendor Center).
- Select New Customer:job (or New Vendor) drop-down from the Customer Center (or Vendor Center)
- Click on New Customer or New Vendor.
- Assign a Customer (or Vendor) Name and Currency and then click on OK.
Step 3: Add Foreign-Currency Accounts
You are only allowed to assign a single currency for a single account. For your foreign-currency transactions, you will have to create new accounts.
- All existing accounts will be assigned as your home currency. You won’t be able to change the currency for accounts for which the transactions are already recorded.
- You can keep on using the home currency accounts to finish any open balances. Use the new foreign-currency accounts for transactions once every opening balances are closed.
- You can assign the currencies for the following account types:
- Bank, Credit Card
- Accounts Receivable (A/R)
- Accounts Payable (A/P).
Note: The A/R and A/P account currency must be equal to the customer or vendor’s currency used in the transaction. QuickBooks will automatically create a different account for each currency after you create the transactions.
- To create foreign -currency and credit card accounts, you need to use the Chart of Accounts.
To add foreign-currency accounts:
- From the Lists menu, go to Chart of Accounts
- Right-click anywhere in the Chart of Accounts window and select New from the drop-down list.
- Select an appropriate account Type and provide a name to it.
- Click on Save & Close.
Step 4: Update Your Exchange Rates
Only the currency’s rates are downloaded by the QuickBooks Desktop. Additionally, you can download rates if the US dollar is set as your home currency.
To download exchange rates:
- Navigate to List menu and choose Currency List.
- Click on Activities and the Download Latest Exchange Rates
To manually enter exchange rates:
- From the List menu, select Currency List
- Double-click on a currency and update the currency exchange rate for specific date/s in the Edit Currency window,
Step 5: Create Foreign-Currency Transactions
Note: You only should use the foreign-currency names or accounts inserted for new foreign-currency transactions.
You must not use the new foreign-currency version of that customer to receive payment again the invoice if you already have an open invoice for an existing customer containing your home currency. You can keep on using the home currency version of the customer in order to finish the transaction.
- Do not assign a currency to sales and purchase transactions because these currencies couldn’t be assigned the currency of customer or vendor you mentioned on the form.
- Exchange rates are part of each transaction and refer to the home currency value of transaction.
- Amounts mentioned on the sales and purchase transactions are under the customer’s or vendor’s currency and the home currency is equally listed for entire total of the transaction.
- Always the home currency will always be shown on the reports despite if the currency you used for the transaction.
Technical Support For QuickBooks
Hopefully, you find this article helpful and now you are able to set up and use multicurrency feature in QuickBooks. It can be very helpful for you if you’ve expanded your business outside US and Canada. However, sometimes it might become a bit complex to set up multicurrency feature as you may face some issues while using it. In such scenarios, you can get in touch with us at our toll-free QuickBooks Technical Support Phone Number +1855-565-6250 to get instant support for your issues.