How to Set Up and Use Multi-Currency in QuickBooks?
First international dealings need extra support to offer efficient accounting and banking options. So, this is where QuickBooks Multi Currency feature comes into the picture. Moreover, it helps you to track foreign transactions and allocate a particular currency to an international vendor.
In this blog, we will discuss how to set up and make the most out of QuickBooks Multi-Currency feature.
Note: Once you switch to the multi-currency option, your home currency is automatically set up and there is no option to change it.
Enabling QuickBooks Multi Currency Feature
The QuickBooks multi currency feature has its own benefits which include no change in exchange rate each month, no need to check historical rates or keep an eye on specific bank’s exchange rates. It has reduced the burden of handling the dates and currency while or before entering transactions. Furthermore, It is not required to open spreadsheets for finding out original invoice and currency used at the time entry.
- Firstly, navigate to QuickBooks Edit Option and click on Preferences.
- Choose Multiple Currencies on the left side options
- Click the Company Preferences dialogue box and check Yes, I use more than one currency.
- In the prompt, you need to click “Yes”
- Select your Home Currency from the drop-down menu.
The QuickBooks multi-currency feature has its own benefits like you don’t have to change the exchange rate each month, we don’t need to check historical rates or keep an eye on specific bank’s exchange rates. It has reduced the burden of handling the dates and currency while or before entering transactions. We don’t have to go through several spreadsheets to find out the original invoice and currency used at the time entry.
Also Read: How to Fix QuicklBooks Error 1603? [xyz-ihs snippet=”consult-button”]
Adding Foreign Customers or Vendors
You can allocate only one currency per customer or vendor profile. You have to make new profiles to allow a new currency. Existing customers and vendors will be allotted in your home currency after turned on this feature. Currency can’t be changed for names that already have recorded transactions. Below are a few steps we can follow:
- Go to the Customer / Vendor center to create foreign customers and vendors, If the name is already present (using your home currency) in the list, assign a bit different name to the foreign customer/vendor that you created
- Go to the Customer / Vendor menu, Select Customer Center / Vendor Center
- Click the New Customer / Vendor on the drop-down, Choose New Customer / Vendor
- Appoint a Customer / Vendor Name and Currency
- Lastly, click OK
To Add Foreign Accounts
You can allocate only one currency for each account and create a new one for your foreign transaction. After you turn on this feature, existing accounts will be allotted in your home currency. Currency can’t be changed for accounts with previously recorded transactions. Currencies assigned to the following accounts such as Credit Card Accounts, Vendors, Bank Account, Customers, Account Receivable(A/R) and Account payable(A/P).
Note: Currencies of the accounts of (A/R) and (A/P) should match customer’s(Vendor’s) currency used in all the transactions.
Downloading Exchange Rates: You can download rates at one condition if your residency lies in USD (US dollar=$).
Automatically download Exchange Rates: Go to the list menu, Then choose Currency List.
After that choose the Activities button and select Download New Exchange Rates.
Manually enter the Exchange Rates: Go to the list menu, Then choose Currency List. Double click to choose the Currency. Afterward, you can update the Currency Exchange Rates for particular date/s in the Edit Currency window.
Adding or Removing Foreign Currencies
(A) Steps to add a currency:
- Choose the gear icon on the top.
- Now click on “Currencies”.
- Search and click on “Add Currencies”.
- Choose your required currency from the drop-down menu.
(B) Steps to remove a currency:
- Choose the Gear icon at the top.
- Click on “Currencies”.
- Locate “Edit currency exchange” from the menu.
- Select Delete option.
- You will be prompted for verification.
- Now click on Yes.
Important things to know prior to using the QuickBooks Multi Currency feature:
- QuickBooks multi currency turn on the option is not reversible.
- Users should make a Backup file before enabling this feature in case they want to return to a single currency option.
- After multiple currency preferences are turned on, Select the other currencies to track.
- You can only use the foreign accounts and names you added, for a new foreign transaction.
- Do not use the foreign version for the existing customer to receive payments if you have an invoice for the customer appointed for home currency.
- You can not appoint currency transactions to sales and purchase, due to they allotted the currency of the customers and vendors you entered.
- The amounts of sales and purchase transactions are in the customers and vendors currency and the value of home currency equivalent to the listed transactions totals.
- A home currency reflects all the reports in any case of the currency used in all the transactions.
If you face any difficulty while setting the multi-currency feature, our certified experts will guide you and provide the best solutions. Call us on our QuickBooks Support Phone Number.
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