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Hello,
I have a Quickbook database in Euro, with suppliers and customers in GBP and Euro without having activated the multi-currency function.
So far I have been converting from GBP to EURO manually before my entry in Euro.
I would like to activate the multi-currency function for the financial year 2023 but I have questions about :
- Will it have an impact on my GBP customer balances?
- If my customer account was set up without currency, and it will be in GBP in the future, but the transactions generated up to now were in Euro, won't this make a mess and convert everything?
- I don't see the field with the conversion rate for importing with a rate that you choose
Is there any other risk to activate this function with an already existing and running database?
Thank you for your help.
Marion
Solved! Go to Solution.
Hi Marion22 To confirm, you've set your home currency as Euro and creating transactions in Euro however you have GBP customers/suppliers and you've been manually converting the GBP amounts received/spent into Euro and entering the amounts on the Euro transactions ? If this is correct then when you activate multicurrency it will have no impact on any transactions that you've created in the original Euro home currency. Once you activated multicurrency you can create new customers and allocate the relevant currency to them and the option to enter a exchange rate will appear on the foreign currency transactions however existing customers that you've created will remain as Euro customers as will any transactions created in the home currency.
Hello Marion22, Whatever currency you set as your home currency transactions such as invoices will automatically be in that currency when you create them unless you set that customer up to pay in GBP, and then it will be in GBP for example
Any questions let us know
Hi Marion22 To confirm, you've set your home currency as Euro and creating transactions in Euro however you have GBP customers/suppliers and you've been manually converting the GBP amounts received/spent into Euro and entering the amounts on the Euro transactions ? If this is correct then when you activate multicurrency it will have no impact on any transactions that you've created in the original Euro home currency. Once you activated multicurrency you can create new customers and allocate the relevant currency to them and the option to enter a exchange rate will appear on the foreign currency transactions however existing customers that you've created will remain as Euro customers as will any transactions created in the home currency.
oh ok, so if I want to have, for example customer A that was in Euro before because my home currency was in Euro, in GBP now, I'll need to create another one, customer AA in GBP if I want to register it in GBP
am I correct ?
Hello Marion22, Whatever currency you set as your home currency transactions such as invoices will automatically be in that currency when you create them unless you set that customer up to pay in GBP, and then it will be in GBP for example
Any questions let us know
well actually I have one. I have a testing data base so I've made the test to let one client in euro and create one in GBP
I've used the same services on both invoices I've made on each customer, and this service is going into the same account on the COA.
When I'm extracting the report "profit and loss", it's ok I'm seeing everything in the same account.
But, if I'm looking at the balance, I have one debtors in euro (the one I've created) and one in GBP (the one thtat was in quickbook coa) although the amount I see is converted, I'd like to get everything into the same account .
I've done the same thing which suppliers and I get the same problem.
Can you help ?
Thanks for getting back to the thread, Marion.
Allow me to chime in and share some information with you. You won't be able to put both GBP and Euro customers into the same account since you've already set them up.
If you want them to be in the same account, you can follow what John C mention above. Also, you may consider setting up both customers as Euro or GBP.
You can utilize this article for additional information about Multicurrency: Set up and use multicurrency in QuickBooks Online.
You can visit this article to know how to get the most out of your financial reports: Customise reports in QuickBooks Online.
If you have any further QuickBooks-related concerns, don't hesitate to post them here. Stay safe!
I actually have followed what John C explained. My test-data base is in home currency Euro and has multi-currency on.
1/ I've kept the customer account 4110025-xxx that was in Euro.
2/ I've created the customer account 4110025B-xxx in GBP
I've created invoice 2284 in GBP for 4110025B and 2285 in Euro for customer 4110025.
The service I've used on invoice is the same "706000 Sales services" related to COA N° 706000.
So the system of QB do not follow the same rules/logic because, while the system is showing into 706000 both 2284 and 2285 invoices with amount of 2284 converted into Euro ; and a total amount for this COA account in Euro ; it does not apply the same logic for debors.
Invoice 2285 from customer 4110025 in EURO is going into the COA account 411000 debtors ; while Invoice 2284 from customer 4110025B in GBP went to a COA account that I did not created "debtor" that is set up in GBP.
Why the system is not following the same rule/logic and convert the debt created in GBP into my home currency ?
see attachments
Hello Marion22,
Thanks for the examples and cohesive explanation. We just want to confirm this point 'So the system of QB does not follow the same rules/logic because, while the system is showing into 706000 both 2284 and 2285 invoices with the amount of 2284 converted into Euro' When is that being converted to Euro is that at the bank account chart of account or the income accounts? If Euro is the home currency and the bank is set in Euros that would be the case. It would also set a Debtors GBP as default as the customer is set up to pay in GBP.
It's converted in the "income account" (706000 is an income account)
I have a bank account in Euro and another one in GBP and there is not movement in it. Nothing yet.
so if my home currency is in Euro, but that I have customers in GBP that are paying in GBP, I'll have for sure a debtors GBP as default ?
Same for creditors then ?
Hello Marion22, The income account would be in the home currency. Yes, that is right if your home currency is Euro. but you have customers in GBP and you invoice them and you have suppliers in GBP that you create a bill for then Quickbooks will create a GBP debtor and a GBP creditors account.
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