Set up and use Multi-currency
When you use QuickBooks Desktop, you are capable of keeping a track of transactions in foreign currency ( multi-currency feature in QuickBooks ). This feature called the Multi-currency permits one person to allot a particular currency type to the following profiles and accounts:
- Price levels
- Bank accounts
- Credit card accounts
- Accounts receivable
- Accounts payable
Step 1: Turn on multi-currency feature in quickbooks
- Visit the QuickBooks Edit menu, then Preferences.
- On the left pane, choose Multiple Currencies.
- Visit to the Company Preferencestab, then click on Yes, I use more than one currency.
- From the drop-down, choose your home currency.
Step 2: Add foreign-currency clients and vendors
Users can only allot one currency per customer or vendor profile. In order to assign a new currency, a new profile needs to be created.
- Whenever you enable the feature the existing clients will be able to allot your home currency. In this way, you can’t change the currency for names that already include transactions recorded against them.
- Even when you exit the balances try and continue to make use of home currency customers and vendors. You may make use of your foreign-currency customers or vendors for any latest sales or purchases you make but proceed using the home currency names until you complete any present open transactions.
- Also, please apply the Customer and Vendor Centers to make foreign-currency customers or vendors. In case a name is already listed using your home currency, allot different name to the foreign-currency customer or vendor.
Note: If you want some more information regarding the multi-currency feature in QuickBooks, please contact QuickBooks Technical Support for more.
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Conduct the following steps to add foreign-currency Vendors or Customers:
- Visit the Customers (or Vendors) menu, then Customer Center (or Vendor Center).
- In the Customer Center (or Vendor Center), click on the New Customer:job (or New Vendor) drop-down, then select New Customer (or New Vendor).
- Allot a Customer (or Vendor) Name and Currency.
- Choose OK.
- Add foreign-currency accounts
You can only allot one currency to every account. You require to make new accounts for your foreign-currency transactions.
- All existing accounts will be allotted to your home currency. You can’t modify the currency for accounts that already have transactions recorded against them.
- You may proceed to make use of the home currency accounts for finishing any open balances. Also, you may apply the new foreign- currency accounts for transactions after shutting down all open balances.
- You can allot the currencies to different account types mainly: Bank, Credit Card, Accounts Receivable (A/R), and Accounts Payable (A/P).
Note:The currency of A/R and A/P accounts must match the currency of the customer or vendor. QuickBooks has the ability to create a different account automatically for every currency as one builds the transactions.
- Make use of the Chart of Accounts to make foreign-currency bank and credit card accounts as required.
Follow the steps below to add foreign-currency accounts:
- Visit the Lists menu, then Chart of Accounts.
- In the Chart of Accounts, right-click anywhere and choose New.
- Select the appropriate account Type and assign a name.
- Click on Save & Close.
Step 4: Update your exchange rates
QuickBooks Desktop downloads rates for active currencies only. Additionally, you may also download rates in case your home currency is the US dollar.
If you wish to download exchange rates:
- Visit the Lists menu, then Currency List.
- Choose the Activities button and click on Download Latest Exchange Rates.
If you wish to manually enter exchange rates:
- Visit the Lists menu, then Currency List.
- Double-click on a currency.
- In the Edit Currency window, update the currency exchange rate for specific date/s.
Step 5: Make foreign-currency transactions
Important: You can only make use of the foreign currency names or accounts for new foreign currency transactions.
In case you contain an open invoice for a customer that has your home currency, it is advised for you to not make use of the latest foreign-currency version of that client to get payment against that invoice. Instead, you may proceed to use the home currency version of the customer to finish the transaction.
- You don’t allot a currency to sales and get transactions because they are assigned the currency of the customer or vendor you entered on the form.
- Exchange rates are actually a part of every transaction and define the home currency value of the transaction.
- Amounts on sales and purchase transactions are in the customer’s or vendor’s currency and the home currency equivalent is listed for the transaction total.
- Reports will always show the home currency regardless of the currency used in transactions.
In case, you feel the need for further help, please contact us at QuickBooks Support.