QuickBooks accounting software has lots of features and functionalities for its users. QuickBooks Multi Currency is one of those features that helps you to track foreign transactions and allocate a specific currency to an international seller. However, you can assign only one currency to one customer. To assign foreign currency, you’ll need to create new profiles. Once you turn on QB Multi-Currency, you will be unable to turn it off.
You can set up QuickBooks Multicurrency and enable it by taking help from the following blog. We have described the steps of setting up and enabling this feature in the blog.
In case, you are unable to perform any of the steps by yourself, feel free to talk to our team at Accountant Squad.
Initially, we are going to start with some important points that you need to consider before setting up QuickBooks Multicurrency.
Consider the Following Points Before Turning on QuickBooks Multi Currency
If you turn on Multicurrency in QuickBooks Online, you will be unable to turn it off. So it is necessary to know the terms and conditions before turning on this feature. You need to ensure that you have the backup of your QuickBooks company file. Go through the following points too:
- Fixed Asset Manager and Statement Writer only utilize U.S. currency. They will not be affected by turning on the Multicurrency feature.
- Once turning on this feature, the user will be unable to use the income tracker, insights, and bill tracker. Also, in QuickBooks enterprise and accountant, you can’t batch enter invoices or delete transactions.
- The user will be unable to choose multiple customers in the Invoices.
- The information will not be exchanged with QB desktop for Mac or the user is not able to copy the company file.
- In invoices, online payment will stop working for multiple currencies.
How to set up QuickBooks Multi Currency?
The multi-currency permits you to allocate a particular currency type to the accounts such as Accounts receivable (A/R), Accounts payable, bank accounts, vendors, customers, credit card accounts, and price levels.
Listed below are the steps to turn on Multi-currency in QuickBooks:
Step 1: Turn on Multicurrency
- In the Edit menu, choose Preference.
- Choose QuickBooks Multiple Currencies.
- Now, choose the Company Preferences tab and choose Yes, I use more than one currency.
- In the end, you have to click on the home currency.
Step 2: Add Customers and Vendors (Foreign Currency)
First of all, you need to remember that only one currency can be assigned to one customer or vendor profile. If you want to assign a new currency, then you’ll need to make new profiles.
- In the Customers menu, choose the Customer Center.
- Now, click on New Customer: job or New Vendor.
- After that, you need to assign a Currency and a Customer Name.
- Choose OK.
Step 3: Add Accounts (Foreign Currency)
Keep remembering only one currency can be assigned for each account. If you want to assign foreign currency, make new accounts for it. After turning on this feature, current accounts will be assigned in home currency. You will be unable to change the currency for accounts with previously added transactions. Now, follow the points written below to add accounts:
- In the Lists menu, choose Chart of Accounts.
- Now, you need to choose New by right-clicking anywhere.
- Select the proper account Type.
- Assign a name.
- Choose Save & Close.
Step 4: Update Exchange Rates
You can download rates for active currency only. You will be able to download rates only if the home currency is the US dollar.
Steps to download exchange rate
- First, you need to open the Lists menu and select the Currency List.
- Now, go to the Activities and then click on Download Latest Exchange Rates.
Steps to enter exchange rates
- Select the Lists menu and then click on Currency List.
- Double-tap on the currency.
- Select the Edit Currency window and click on the update the currency exchange rates.
Step 5: Make Foreign Currency Transactions
You just need to utilize the foreign-currency accounts or names that have been included for new foreign currency transactions.
If you have an open receipt for a current client that has your home money, don’t utilize the new foreign currency variant of that client to get installment against that receipt. Rather, keep on utilizing the home currency variant of the client to finish the transaction.
- You don’t allocate cash to purchase and sales transactions since they are allocated the currency of the client or seller that have been entered by you in the form.
- Trade rates are a piece of every exchange and decide the home money estimation of the exchange.
- Sums on deals and buy exchanges are in the client’s or seller’s currency and the home cash proportional is recorded for the exchange complete.
- Reports will consistently reflect the home currency paying little mind to the money utilized in exchanges.
How to use QuickBooks Multi Currency?
If a customer whose base currency is the Canadian dollar and home currency is the U.S. dollar. According to this example, foreign currency means the Canadian dollar. Follow the steps written below to use QuickBooks multi currency:
- Choose Customers > New Customers.
- Now, select the Payment and Billing
- After that, launch This Customer Pays Me With list and choose the Customer’s currency.
- Save the Customer.
- After saving the customer, check the Customer list page, the customer name and foreign currency will appear on this list.
- The home currency customers appear as home currency.
- Open the Invoice window, choose the foreign transaction
- Now, QuickBooks automatically shows the customer’s name and two currencies (the first one is foreign currency and the other is your home currency) related to the transaction.
- Add products or services to the invoice.
- Now, Customers can know how much to pay when the Balance Due to transaction shows in the foreign currency.
QuickBooks Multi Currency is a useful feature for its users. The aforementioned blog will help you in knowing the steps to set up and enable this feature in QuickBooks. You will also get to know the use of QuickBooks online multi-currency. In case, you find it difficult to understand multi-currency in QB or want more guidance for the same, then quickly get in touch with us at our QuickBooks 24/7 Support Phone Number .