Quickbooks is a world-renowned Business Accounting Software with no dearth of useful features. One such feature of the program is Quickbooks Multi-Currency. It allows users to keep a track of their transactions in foreign currency. Are you trying to use Quickbooks Multi-Currency as well? Here’s everything you need to know about Quickbooks Multi-Currency Setup.
How Quickbooks Multi-Currency Setup Can help you?
The Quickbooks Multi-Currency feature enables users to designate various currency types to different accounts and profiles. These accounts and profiles can include the following:
- Accounts receivable
- Accounts payable
- Bank accounts
- Credit card accounts
- Price levels
In order to assign international currencies, you must create new profiles. It is important to note that you can only assign one currency to each customer. Once the Quickbooks Multi-Currency Setup is completed, you cannot turn it off.
Things to note before implementing Quickbooks Multi-Currency Setup
Before you initiate the Quickbooks Multi-Currency Setup, it is worth your time to note the following:
- Since Multi-Currency cannot be turned off once enabled, it is recommended that you make a backup of your Quickbooks Company File.
- The Quickbooks Desktop Add-Ons that only use US currency shall not be affected when the Quickbooks Multi-Currency setup is completed. These add-ons include Statement Writer, Fixed Asset Manager, etc.
- You won’t be able to use the following once the Quickbooks Multi-Currency Setup is complete:
- Bill Tracker
- Income Tracker
- Multiple customers won’t be eligible for selection in the invoices (Time and Expenses window).
- Invoice payments don’t work online with more than one currency.
- An exchange of information with Quickbooks Desktop for Mac isn’t possible. Also, the user won’t be able to copy the Company File in order to work with it.
How to set up and use Quickbooks Multi-Currency?
It is extremely convenient for an average Quickbooks user to go through the Quickbooks Multi-Currency Setup process. The entire process is discussed in detail below:
Set Up Multi-Currency In Quickbooks
- Open Quickbooks Desktop and navigate to the Edit menu.
- From here, select Preferences.
- Choose the Multiple Currencies option.
- Now, visit the Company Preferences tab.
- Select the following option: ‘Yes, I use more than one currency’.
- Finally, choose the Home Currency from the drop-down menu.
Assign Foreign Currency to Vendors and Customers
- Navigate to the Vendors (or Customers) menu on Quickbooks Desktop.
- Under Vendor Center (or Customer Center), choose New Vendor (or New Customer).
- Assign the Vendor Name (or Customer Name).
- Now, assign the Vendor Currency (or Customer Currency).
- Finally, click on OK.
Assign/Add Foreign Currency Accounts
- In the Lists menu, go to Chart of Accounts.
- Select New by right-clicking anywhere in the Chart of Accounts.
- Choose the suitable account type.
- Assign the account a name.
- Finally, click on save and close the window.
Update the Exchange Rates
Exchange rates can only be downloaded if the home currency is the US Dollar. Download exchange rates by following these steps:
- Open the Lists menu.
- Click on Currency List.
- Choose the activities button.
- Finally, click on the Download Latest Exchange Rates option.
You can also manually enter exchange rates by going through the following process:
- Navigate to the Currency List as shown in the above-stated process.
- Perform a double-click on a Currency to open the Edit Currency window.
- From here, you can update the exchange rate for certain dates.
Creation of Foreign Currency Transactions
The final stage in the process of Multi-Currency Setup and usage is making the foreign currency transactions. Below are certain guidelines the user is required to be familiar with before creating foreign currency transactions:
- Your reports shall always show the home currency even if another currency was used for the transactions.
- The home currency value of each transaction is ascertained by exchange rates.
- For new foreign currency transactions, you must only use the foreign currency names and accounts which you have added.
- The user cannot assign a particular currency to sales and purchase transactions. These transactions are assigned the currency of the vendor or customer.
Steps to use Quickbooks Multi-Currency
Once you have successfully gone through the process of Quickbooks Multi-Currency Setup, you can use it by following these steps:
- Select Customers and then New Customers.
- Choose the Payment and Billing option.
- Now, begin with a list like a Customer Pays Me and choose the Customer’s Currency.
- Select the Save option.
- Go through the Supplier List page and locate the overseas currency and supplier name.
- The domestic currency supplier shows domestic currency.
- Now, choose Overseas Transaction from the Invoice Window.
- Add an item to the invoice.
- Once these steps are followed, suppliers will be able to know the payment amount as it shall be shown in the overseas currency.
Facing any troubles with Quickbooks Multi-Currency Setup? Get in touch with our Quickbooks Specialists for assistance and any related queries.
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