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Level 1

entering a foreign currency bill (USD) and paying in home currency (CAD)

my home currency is CAD, but I have suppliers that bill in USD. They are paid by credit card and so the payment is converted to CAD. Do I convert the bill to CAD, enter and pay. Or do I need to enter the bill in USD and Pay in CAD...is that even possible to do?

3 Comments
QuickBooks Team

entering a foreign currency bill (USD) and paying in home currency (CAD)

Hi halima,

 

Welcome to the community! The multicurrency feature in QuickBooks Online Essentials and Plus enables you to properly record and track transactions in foreign currencies. I'd be happy to share more on this.

 

After you assign the proper foreign currency to your supplier during its setup, QuickBooks Online takes care of the rest in terms of exchange rates and conversions. What I mean is, when creating a Bill, for example, towards a USD supplier, the Amount column will be in USD and the Total amount after entering the USD value will be presented in both USD and CAD. Once ready to record the Bill payment, you'll again see both currencies converted for you. The amount you enter on your Bill payment will be in USD, and you'll see the conversion at the bottom reflecting the total paid in USD and CAD. QuickBooks uses a robust system to ensure your conversions are precise, and to maintain accuracy across your books, you can't create a USD Bill and apply a CAD payment to it. 

 

I hope this helps to clarify things for you. You're always welcome to stop by if you have more questions.

 

Level 1

entering a foreign currency bill (USD) and paying in home currency (CAD)

thank you, that's so helpful! One follow up question-what if quickbooks converts the amount to Canadian at a different rate than what my credit card does? Do I manually change it, how do I balance my transactions to the bill if they are off by a little? thanks again!

QuickBooks Team

entering a foreign currency bill (USD) and paying in home currency (CAD)

Hi again, halima. It's always a pleasure to help. Yes, you have the flexibility to edit the exchange rate if necessary. The exchange rate amount is below the supplier's, customer's, or payee's name. It pop's up automatically based on the most recent exchange rates from Markit, but you can click on it to edit when needed.

 

Here are some other articles you may find useful.

Let me know if there's anything else I can do to help!