US Bank Account, US AP, CAD Expense Account

Hi TurtleHermit,

Recording your transactions accurately in QuickBooks Online, is essential in keeping your books balanced.  I would be happy to provide some insight here!

Once multicurrency has been turned on, you can assign a foreign currency to your accounts.  Your chart of accounts will show account balances in their assigned currency and also have a column identifying the currency for each account.  Please note that income and expense accounts always use your home currency.  In addition, you can set a default currency to your customers and suppliers. 

Here's how to add a foreign currency account;

1. Open your Settings ⚙ and select Chart of Accounts

2. Hit New

3. Use the ▼ dropdown menu to select the appropriate Account type and Detail type

4. Enter a Name for the account 

5. Choose the currency for the account from the Currency ▼ dropdown menu

6. Hit Save and close.

Once you've created the transaction, you may need to recalculate the home currency value using current exchange rates.  The home currency value is based on the exchange rates used at the time of each transaction.  Here's how;

1. Open your Settings ⚙, then select Currencies

2. Under the Actions column, select the ▼ dropdown menu, for the currency you want to adjust, then Revalue currency

3. Enter a Date to run a currency revaluation

4. Decide whether you'd like it to be based on the Market rate or Your rate 

5. Select the Account you want to apply the revaluation to

6. Hit Save.

Note; Only one exchange rate can be saved per day per account.  You should be able to match your transactions and proceed to reconcile your account!

Feel free to touch base with us again, if you have other questions.  We will be close by!

Hi Trish,

Thank you for the response. I have some follow up questions based on it.

Multi currency has already been enabled. If income and expense accounts always use home currency does this mean I will not be able to create a USD expense account?

Also you said once I create the transaction to revaluate using the appropriate FX but I have already done that.

For example, my current situation is something like the following:

The expense has been paid for 9K USD, I see this in banking transactions in a USD bank account, when I select this transaction  in bank transactions within QBO it shows the CAD amount it would equate to. I then posted a journal entry that debits the expense and credits AP for this CAD amount. However once this occurs I am given no option to match the bank transaction to the AP JE I have posted, I assume because QBO is trying to match the USD to the CAD without converting.

Hope this is clearer, thank you.

Hi TurtleHermit,

QuickBooks Online enables you to add new accounts to your chart of accounts, with foreign currencies.  Here's a helpful guide to show you how.  When you add a supplier with a foreign currency, you'll be able to record transactions in the currency in which you pay the supplier, so your records remain aligned.

Should you require additional assistance, I feel you would benefit more, by contacting our Customer Care team at 1-855-253-1536 from Monday to Friday between the hours of 9 AM and 8 PM EST. With your consent, they'll connect with you virtually and ensure you're able to accomplish your QuickBooks goals as soon as possible!

Feel free to reach out with other questions. We are always glad to help!