Convert Home Currency to Foreign Currency

lemondoodle · ‎September 27, 2019

Hi, I need to run reporting for a foreign company in the foreign currency (CAD). I have the foreign currency set up and we download rates. I even understand home currency adjustments. I have no problem converting to USD when the item is paid or received in CAD. My problem is that we have some expenses that we pay in USD (home currency) and need to convert that USD number to CAD for reporting purposes. I just cannot figure out how to report the other way around. When I run a general ledger showing "foreign amount", "foreign balance", "currency" and "exchange rate" columns, anything that was paid in USD, has an exchange rate of "1" instead of the rate from USD to CAD, and is calculated as such. Of course, the CAD items show the correct CAD to USD rate and are calculated as such. Thanks!

JonpriL · ‎September 27, 2019

It's nice to see you again, @lemondoodle.

The Currency Revaluation is translating your foreign currency into your company's reporting currency. I'm here to share a few insights and help you from there.

To start with, the concept of currency revaluation is updating all the changes in the exchange rate for your home and foreign currencies.

On the other hand, once a transaction has been paid with the home currency account, you're unable to convert them into a foreign one. Because the exchange rate will always show on your transactions and your home currency is the default display of your report's data.

To fix this, you can consider using your CAD bank account when paying your transactions recorded with the home currency. This way. it'll be posted into your CAD foreign account.

In case you need some more insights, you can read this article to learn more about multicurrency: Set Up and Use Multicurrency.

Know that you can always visit our Help Articles for QuickBooks Desktop in case you need some reference for your future tasks.

If there's anything else that I can help you with please let me know in the comment section down below. I'll be always around ready to help.

View solution in original post

EdwardR · ‎September 27, 2019

Hello Lemondoodle thanks for posting back in the Community.

Can I confirm when the exchange rate is showing one for one is this prior to any currency revaluation?

lemondoodle · ‎September 27, 2019

I'm not sure what you mean by currency revaluation. Can you give me a bit more detail?

JonpriL · ‎September 27, 2019

It's nice to see you again, @lemondoodle.

The Currency Revaluation is translating your foreign currency into your company's reporting currency. I'm here to share a few insights and help you from there.

To start with, the concept of currency revaluation is updating all the changes in the exchange rate for your home and foreign currencies.

On the other hand, once a transaction has been paid with the home currency account, you're unable to convert them into a foreign one. Because the exchange rate will always show on your transactions and your home currency is the default display of your report's data.

To fix this, you can consider using your CAD bank account when paying your transactions recorded with the home currency. This way. it'll be posted into your CAD foreign account.

In case you need some more insights, you can read this article to learn more about multicurrency: Set Up and Use Multicurrency.

Know that you can always visit our Help Articles for QuickBooks Desktop in case you need some reference for your future tasks.

If there's anything else that I can help you with please let me know in the comment section down below. I'll be always around ready to help.

lemondoodle · ‎September 30, 2019

Thank you for the great explanation.

Yes, we try to use the CAD bank account as much as possible but there are items that we have to pay in USD, thus the problem.

It looks like there is no real solution to my problem beyond converting from USD (home currency) to CAD (foreign currency) manually and running the reporting out of excel. UGH.

Thank you for your input.

jusTUNEin1 · ‎April 04, 2022

Another push for Quickbooks to change this. It is a failure of an accounting software when the only solution to account for something is to require organizations to change which bank account they are using. Much easier to fix the software! How clunky and poorly managed. Please consider adding a feature to manually change the foreign currency exchange rate on transactions incurred in the home currency.

RenjolynC · ‎April 04, 2022

Thanks for sharing your suggestion on this thread, jusTUNEin1.

It'd be nice to have an option that can manually change the foreign currency exchange rate on transactions. To send a feature request to our Product Development Team, you can follow the steps below. We always have updates about our platform improvements, and the option might be included in the future.

Go to Help > Send Feedback Online > Product Suggestion.
Enter your request.
Click Send Feedback.

To stay updated with the latest news and features, please feel free to visit our QuickBooks Blog. You can also check our general help topics page for more tips and articles.

For other questions or concerns regarding your account, please let us know in your reply. We're always available to assist you. Take care and stay safe!

Topics

Training

Community

Resources

Convert Home Currency to Foreign Currency