Multicurrency Exchange Rate

Thank you Talia. Perfect!

Hi @TaliaI 

Sorry to kind of resurrect this, but I've found out a little more on the process of my billing now and I am still a bit unsure how best to handle this...

1. I will be billing a UK Agency, BUT I need to bill them in Euros because their client who I will be contracting for is based in Belgium and the contract rate is Euros
2. They will pay me the Euro amount
3. They have suggested that I set up a Euro Bank Account (which I am in the process of and have a meeting with my bank about it)
4. I have configured the multi currency option so far, although I haven't yet set up any customer or transactions involving this currency, as I am still awaiting to find out if I have the contract!
5. The plan will be to use the Euro Account to receive payment of my invoices and also for paying expenses that will directly involve expenses in Euros, such as accommodation etc.  I also plan to transfer money from this account over to my main (original) UK account since this is where the majority of my costs and expenses are funded from my income.  I'm not sure yet, and I am checking with my Accountant / HMRC, but I might also claim the HMRCs fixed expense allowance for Belgium too in this account/currency...depending on the advice I get back.

So, from further reading of the FAQs I have spotted that I can add in an additional account (as an account can only have 1 currency) and I have noticed in the Chart of Accounts that all of the accounts, including my bank account lists GBP (as expected).

But what I would like to know is:

1. Do I have to create an additional expense account (such as Travel Expenses) so that I have 2 accounts, one for GBP and one for EU...in addition to the actual bank account?
2. How would this affect reports such as the Profit & Loss?  I can't picture at the moment how that would include both.  Would it list both sets of amounts and how would it decide on total profit etc?  Or would it convert to GBP first for the purposes of this report.

I am just trying to learn as much as possible on the affects of this and how I should handle things like the multiple bank accounts, different expense categories (Chart of Accounts) and reporting for people like the Tax Man :)

As I have said, I have seen some FAQ docs which I am working through but haven't spotted anything (yet) that answers the above, and would therefore appreciate any help that you, or anyone else that may have experience in dealing in multiple currencies could offer me with this.

Many thanks

Andrew

Hello again, @pezza.

Thanks for sharing such detailed information. It gives me an overview on how to help you handle your transactions in QuickBooks.

Based on the information provided, the Multi-currency feature will help you manage them. Just a heads up, this feature is only available in the Essentials and Plus version.

If that’s your current subscription, let me walk you through the process of activating it.

Here’s how:

1. Go to the Gear icon at the top, then select Account and Settings.
2. Choose Advanced on the left panel.
3. Click on the Pencil icon for Currency, then select Home Currency.
4. Mark the box for Multi-currency.
5. Click on Save and Done.

Since you’ll be accepting Euro and Pounds, make sure to create these customers and banks in QBO. This will help you efficiently track transactions for each currency.

To add customers:

1. Go to Sales on the left panel, then choose Customers.
2. Click on the New customer button.
3. On the Customer information window, enter the information for your UK agency/ EU client.
4. Click on Save.

To add the foreign currency accounts:

1. Go to the Gear icon at the top, then choose Chart of Accounts.
2. Click on New in the upper-right hand.
3. Choose the correct Account and Detail Types.
4. Enter the account’s name in the Name field.
5. Under Currency, click on the drop-down and choose GBP British Pound Sterling/EUR Euro.
6. Click on Save and close.

After setting them up, you can now create invoices and accept payments in Euro. Once done, transfer the funds from your EU account to the GBP bank.

In regard to your other question, you don’t have to create another expense account for each currency because the amounts recorded in QBO are based on the home currency, and it goes the same way on your reports. However, you can run the Balance Sheet report to check the data for each currency.

The information I provided should point you in the right direction.

If you have additional questions about QBO, reach out to me by posting a comment below. I'm here to assist you further.

hello,

Im Yassir i need to set a fixed exchange rate to all new and past invoice in quickbooks online

Thanks

Hi there, @Yassir.

You'll want to go to your Account and Settings and enter a fix exchange rate from there. Let me guide you how.

In your QuickBooks Online (QBO) account:

1. Go to the Gear icon.
2. Select Account and Settings.
3. Click the Advanced tab.
4. Select the Currency section and click the Manage Currencies link.
5. In the Action column, select the Edit currency exchange rate.
6. Select your rate in the Edit currency exchange rate dialog.
7. Click Save when done.

I got you this article for more details: Enter an exchange rate.

You might also want to check this article that can guide you on how to give your invoice a unique look: Customise invoices, estimates, and sales receipts in QuickBooks Online.

Know that our door is always open whenever you need help. Keeping you in working order is our top priority. Take care and stay healthy.

@Yassir 

Utilize the trial period of a 3rd party tool to modify your xchange rate in past transactions. Export your data out, modify the rate, and reimport back into your QBO in bulk. Make sure to set some filters to avoid any duplication.

 https://transactionpro.grsm.io/qbo

Hi, 

Thank you for the details explanation and steps here. 

I have a more important questions as since we deal with customers with different currencies - is there any way to fix the pricing to that currency and not base it on the exchange rate?

For examples, 

I sell the home customer (US) at $10.00 per unit. However I would like to sell to a foreign customer (UK) at £15.00 per unit. 

The currency exchange will give the price per unit £8.50 for instance.

Is there anyway to set it to £15.00 without involving the currency exchange? if this is possible it will be great help.

Hello, @AnnieUK2020.

I can share additional information on how the multi-currency features work in QuickBooks.

Since you've mentioned that your home customer is in the US, are you perhaps using QuickBooks Online US version? If yes, you can use the Price Rules Beta which is available only in the QuickBooks Online US version.  It enables you to enter an optional or fixed price on your multi-currency products.

Here's how to set it up:

1. Click the Gear icon ⚙.
2. Choose Account and Settings.
3. Select the Sales tab.
4. In the Products and Services section, select Edit :pencil:.
5. Put a check-mark to Turn on price rules Beta.
6. Hit Save and then Done.

Once turned on, you can follow the steps below to creating a price rule.

1. Go to the Gear icon :gear:.
2. Choose All Lists.
3. Pick the Price Rules link.
4. Select Create a rule. 
5. Type in your rule a name and enter the necessary information.

You can read through this article for more in-depth information: Set pricing rules in QuickBooks Online.

Also, you can browse these articles to know more about multi-currency in QuickBooks Online:

• Multi-currency tips and tricks
• Multi-currency in QuickBooks Online

Swing by here again if you have other questions about tracking your income and expense multi-currency transactions in QuickBooks. I'd be more than willing to lend you a hand.

How do I adjust the exchange rate in Quickbooks desktop?

Hi there, @swilsey.

Allow me to step in and share some information on how you can adjust your exchange rate in QuickBooks Desktop.

QuickBooks Desktop downloads rates for active currencies only. In addition, you can only download rates if your home currency is the US dollar.

To download exchange rates:

1. Go to the Lists menu, then Currency List.
2. Select the Activities button and select Download Latest Exchange Rates.

To manually enter exchange rates:

1. Go to the Lists menu, then Currency List.
2. Double-click a currency.
3. In the Edit Currency window, update the currency exchange rate for specific date/s.

To learn more about the process, check out this article: Set up and use Multicurrency

Stay in touch if whenever you need anything else. I'm always right here to help.