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Level 1

My default currency is CAD (Canada, eh). I bought inventory in USD using a CAD credit card. I will be selling it online in USD. A few questions...

1. Should I value the inventory in USD or CAD?

2. How do I setup QB to account for the currency exchange on my credit card statement?

7 Comments
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Level 3

My default currency is CAD (Canada, eh). I bought inventory in USD using a CAD credit card. I will be selling it online in USD. A few questions...

You will need to record the transactions in Canadian Dollars.

If you haven't enable the multicurrency function in QuickBooks Edit > Preferences >Multiple Currencies - Company Preferences tab.

QuickBooks will do the exchange rate conversions for you, all you will need to do is enter the appropriate exchange rates in the field on the lower right of the transaction entry screens (Bill, Invoices, Write-Cheques & etc). The rate will be reported on your credit card statement.

You will need to set-up a new vendor that uses USD for it's currency. Then enter the purchase using the 'Enter Credit Card Charges' as usual. Nothing else will change when it comes to making credit card entries or payments.

For sales in USD, if tracking each customer you will need to create a new customer as a USD currency customer (definitely for any credit sales - Invoices). Or you cans use a common customer (ie. USD internet sales), or even leave the Customer/Job field blank,  entering in the customers specific details in the Name/Address and Ship to fields on the 'Sales Order' enter screen. Enter the daily exchange rate.http://www.bankofcanada.ca/rates/exchange/daily-converter/

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Level 1

My default currency is CAD (Canada, eh). I bought inventory in USD using a CAD credit card. I will be selling it online in USD. A few questions...

This is what I figured I'd have to do. Thank you for your help!
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Level 1

My default currency is CAD (Canada, eh). I bought inventory in USD using a CAD credit card. I will be selling it online in USD. A few questions...

I would not use the multi-currency, every time you change the exchange rate it re-values all the payables and receivables causing more issues. I would record everything as numbers not currency, and deal with the exchange when recording the purchase of product or US cash.
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Level 3

My default currency is CAD (Canada, eh). I bought inventory in USD using a CAD credit card. I will be selling it online in USD. A few questions...

Where did you get this idea?  QB does NOT re-value A/R and A/P when you change the exchange rate.  I've been using multicurrency as DMKwpg described for many years with many clients with no issues.
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Level 3

My default currency is CAD (Canada, eh). I bought inventory in USD using a CAD credit card. I will be selling it online in USD. A few questions...

@Golfer:
The only time that will occur is when you use the home currency adjustment feature, to adjust the account balances to the exchange rates at period/year end.

What I think you are confusing is that the balances reported on all reports will be in Canadian Dollars (as it should be) and not in USD. Modifications can be made to bank, G/L, AR & AP customer/vendor detail reports to show the balances in foreign currency if needed
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Level 1

My default currency is CAD (Canada, eh). I bought inventory in USD using a CAD credit card. I will be selling it online in USD. A few questions...

Is the multicurrency function for exchange rate conversations available on the on-line, self employment version of Quickbooks?

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Level 11

My default currency is CAD (Canada, eh). I bought inventory in USD using a CAD credit card. I will be selling it online in USD. A few questions...

@HealthCoach 

There is no multi-currency feature yet in QBSE and QBO EasyStart. If you are using QBO and has many multi-currency deals, explore this payment service.

https://veem.grsm.io/veems

 

Just my 2 cents.