I've heard one of the pro tiers has support for multiple currencies. Can this feature calculate CAD based on the USD>CAD exchange rate on the day of a transaction?

sarahnorthway · ‎April 27, 2020

AddieC · ‎April 27, 2020

Hi sarahnorthway,

It's awesome to hear that you're going to be exploring the Multicurrency feature in QBO! QuickBooks Online Essentials and Plus have the capability to support foreign currencies for companies that do business outside of Canada. I'll explain more about Multicurrency and how QBO calculates the exchange rates.

In QuickBooks Online, exchange rates are recorded as the number of Home currency units it takes to equal 1 Foreign currency unit.

Foreign transactions have two values:

Value in the Home currency: The Home currency value is the total amount of the transaction multiplied by the exchange rate.Your Home currency is the currency of the country where your business is physically located.
Value in the Foreign currency for the customer or supplier: The Foreign currency value is the products or services in the transaction multiplied by the exchange rate.

QuickBooks Online uses the most recent exchange rates from Markit, and the value will be based on the day the transaction is created in QBO.

Take a look at this helpful article for more information about exchange rates: About exchange rates.

Here's more general information about Multicurrency: About Multicurrency.

I hope this helps to answer your question. If you have any other inquiries, please don't hesitate to reach out to our tech support team.

Have a wonderful day.

View solution in original post

AddieC · ‎April 27, 2020

Hi sarahnorthway,

It's awesome to hear that you're going to be exploring the Multicurrency feature in QBO! QuickBooks Online Essentials and Plus have the capability to support foreign currencies for companies that do business outside of Canada. I'll explain more about Multicurrency and how QBO calculates the exchange rates.

In QuickBooks Online, exchange rates are recorded as the number of Home currency units it takes to equal 1 Foreign currency unit.

Foreign transactions have two values:

Value in the Home currency: The Home currency value is the total amount of the transaction multiplied by the exchange rate.Your Home currency is the currency of the country where your business is physically located.
Value in the Foreign currency for the customer or supplier: The Foreign currency value is the products or services in the transaction multiplied by the exchange rate.

QuickBooks Online uses the most recent exchange rates from Markit, and the value will be based on the day the transaction is created in QBO.

Take a look at this helpful article for more information about exchange rates: About exchange rates.

Here's more general information about Multicurrency: About Multicurrency.

I hope this helps to answer your question. If you have any other inquiries, please don't hesitate to reach out to our tech support team.

Have a wonderful day.

sarahnorthway · ‎April 27, 2020

This sounds good - thanks for explaining & for the link!

I believe one of the limitations is still that QBO does not support multi-currency accounts. For example Paypal can accept/store/spend money in 2+ currencies but all the transactions appear in QBO as a single account. It's not possible right now (correct me if I'm wrong) to tell which Paypal transactions are in CAD or in USD. I hope someone is working on this. :)

jay15 · ‎November 24, 2020

@sarahnorthway - You also are not able to have products or services in a currency other than the local currency. So be careful on that account too. Log a feature request to ask for it as it is needed!

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I've heard one of the pro tiers has support for multiple currencies. Can this feature calculate CAD based on the USD>CAD exchange rate on the day of a transaction?