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Set up and use Multicurrency in QuickBooks Online

by Intuit41 Updated 1 month ago

Learn to use Multicurrency in QuickBooks Online Essentials, Plus, and Advanced to do business in foreign currencies.

Doing business with customers overseas is good for your business. However, dealing with exchange rates and foreign currencies can be complicated. The good news: QuickBooks' Multicurrency helps you record foreign transactions easily without worrying about exchange rate conversions.

For a better experience, open this article in QuickBooks Online. Launch side-by-side view Open this link in a new window

Please note before you turn on Multicurrency:

  • Once Multicurrency is on, you can no longer turn it off. This is because currency conversion information will have to be accounted for in the system moving forward. If you’re not sure, we recommend talking to an accountant.
  • Multicurrency is not available for Simple Start users. Here’s how upgrade or downgrade your QuickBooks Online subscription so you can start tracking your foreign currency transactions.
  • If you connect QuickBooks Commerce with QuickBooks Online, Multicurrency won’t work.
  • Turning on Multicurrency will inactivate the cash flow planner in QuickBooks Online.
  • Seeing the “Something’s not quite right” error during Multicurrency setup? Clear cache and cookies to fix issues.

Learn about:

  1. About Multicurrency
  2. Turn on Multicurrency
  3. Add currencies
  4. Delete currencies
  5. Add an account that uses a foreign currency
  6. Add transactions in a foreign currency 
  7. Working with exchange rates
  8. Deposit payment to a bank with a different currency
  9. Pay employees using a different currency
  10. Change an assigned currency for a customer or vendor

About Multicurrency

QuickBooks' Multicurrency lets you record payments and bills from customers, vendors, or bank accounts that use different currencies than your home currency. However, QuickBooks Bill Pay and QuickBooks Payments aren't compatible with Multicurrency. When you turn on Multicurrency, you can enter transactions in different currencies. Then, QuickBooks will convert them to your home currency for you.

Note: You can assign a single currency to most types of accounts including customers, vendors, and accounts in the chart of accounts (like bank and credit card accounts or accounts receivable.) You’ll need to add a new account for each different currency that you use in your transactions.

Turn on Multicurrency

Home currency is usually the currency your business uses for its transactions based on where your business is located. Income and expense accounts always use your home currency.

When you set up QuickBooks, it automatically sets your home currency. If needed, you can change your home currency:

  1. Go to Settings Settings gear icon., then select Account and settings.
  2. Select Advanced.
  3. In the Currency section, select Edit ✎.
  4. From the Home Currency ▼ dropdown, select your currency.
  5. Select the Multicurrency checkbox and confirm that you understand that you can't undo this option.
  6. Select Save.

The Manage Currencies link that appears takes you to the Currencies page, where you can manage the currencies you use.

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Add currencies

  1. Go to Settings Settings gear icon..
  2. Select Currencies.
    Note: This option is available after you turn on Multicurrency.
  3. Select Add currency.
  4. Select the new currency from the Add Currency ▼ dropdown.
  5. Select Add.

Delete currencies

You can only delete a currency if there are no transactions attached to it.

  1. Go to Settings Settings gear icon..
  2. Select Currencies.
  3. Select the small arrow ▼ icon in the Action column and then select Delete.
  4. Select Yes to confirm the deletion.

Add an account that uses a foreign currency

By default, existing accounts will be in your home currency in the Currency column in the Chart of Accounts. To create an account that uses foreign currency:

  1. Go to Settings Settings gear icon..
  2. Select Chart of accounts (Take me there) then New.
  3. Choose Select category then select Bank and credit cards.
  4. Fill out the Category name and select Account type from the menu. 
  5. Select Currency from the dropdown.
  6. Fill out Starting date and opening balance when you’ll start tracking business transactions. Enter the amount you had in the account on that day.
  7. Fill out Description field. Select Save

The account is created, and the account balances will show their assigned currency in the Chart of Accounts. Learn how to add an account to your Chart of Accounts.

Note: Once an account has a transaction posted to it, you can no longer change the account's currency.

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Add transactions in a foreign currency

If you have connected banks that use foreign currencies, you can add transactions in those currencies to QuickBooks Online.

  1. Go to Transactions, then Bank transactions (Take me there).
  2. From the For review tab, open the transaction details and select Add.
  3. In the currency fields, enter the foreign amount or the exchange rate your bank provides.

QuickBooks Online calculates the total, and the Bank Description or Detail fields display the transaction as your bank displayed it on your statement, usually with the amount and currency.

Split transactions

If you use foreign currency, you can still split deposit and expense transactions based on different account categories and taxes, but you can't split a transaction based on different currencies.

To split a transaction between categories, see How to enter a split transaction into the register.

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Working with exchange rates

In QuickBooks, the exchange rate is the number of home currency units it takes to get to 1 foreign currency unit. QuickBooks uses exchange rates to show how much a foreign currency transaction is in your home currency value.

Here’s an example of how QuickBooks uses an exchange rate on a foreign currency invoice:

  • Foreign currency: Canadian dollar (CAD)
  • Home currency: US dollar (USD)
  • Exchange rate: 1 Canadian dollar converts to 0.79 US dollars (1 CAD to 0.79 USD).

Foreign currency values are automatically updated every 4 hours in QuickBooks from Wall Street On Demand. Quickbooks downloads and uses exchange rates from IHS Markit, an information services company. You can use this feature or manually enter in your own exchange rates for foreign currency transactions. 

Also, learn how to adjust your home currency on a regular basis so you can stay current with the most recent foreign exchange rates.

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Deposit payment to a bank with a different currency

With Multicurrency, you can deposit a payment to a bank with a different currency.

  1. Deposit the invoice payment to your bank account that uses the same currency.
  2. Select + New.
  3. Select Transfer.
  4. Choose the accounts for each field:
    • Transfer Funds From: The account where you take the money from.
    • Transfer Funds To: The account where you transfer the money.
    • Currency: The currency you select determines the value of what's in the Transfer Amount field. You also need to enter the exchange rate if you haven't set it up yet.
      For example, you select US Dollars as the currency, then enter $5.00 in the Transfer Amount field. QuickBooks will transfer funds that are equal to $5.00 US dollars.
    • Transfer Amount: The amount you'll transfer to the account. This amount isn't absolute as its total value depends on the currency and exchange rate.
  5. Enter the value of the payment for the invoice in Transfer Amount.
  6. Enter the same date as the invoice, then select Save and close.

Pay employees using a different currency

To pay your employees using a different currency, you'll need to create a new vendor using your employee's information.

Step 1: Create a vendor with your employee info

Be sure the information reflects your employee’s profile. To check, select Payroll, then select Employees. Then look for the employee you want to pay with a different currency.

  1. Go to Expenses and select Vendors (Take me there).
  2. Select New vendor, then fill out the fields with the employee info.
  3. Choose a currency from the Currency ▼ dropdown.
  4. Add a currency to their display name, then select Save.

Step 2: Pay your employee

  1. Select + New.
  2. Select Expense.
  3. From the Payee ▼ dropdown, select the vendor you created with your employee’s info.
  4. In the Category ▼ dropdown, select the account you track your payroll expenses with.
  5. Select Save or Save and close.

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Change an assigned currency for a customer or vendor

You'll need to create a new customer or vendor and assign the new type of currency.

Step 1: Make your vendor or customer inactive

To make a customer inactive:

  1. Go to Sales, then Customers (Take me there).
  2. Find and select the name of the customer you want to change the currency for.
  3. Select Edit, then take note of all their information.
  4. Select Save, then return to the Customers list.
  5. Find the same customer and select the Action ▼ dropdown.
  6. Select Make inactive, then Yes to confirm the request.

To make a vendor inactive:

  1. Go to Expenses, then Vendors (Take me there).
  2. Find and select the name of the vendor you want to change the currency for.
  3. Select Edit, then take note of all their information.
  4. Select Save, then return to the Vendors list.
  5. Find the same vendor and select the Action ▼ dropdown.
  6. Select Make inactive, then Yes to confirm the request.

Step 2: Create a new customer or vendor

To create a new customer:

  1. Go to Sales, then Customers (Take me there).
  2. Select New customer, then fill out the fields using the info you took note of earlier.
  3. Once you’re done adding their info, choose a currency from the Currency ▼ dropdown.
  4. Add a currency to their display name, then select Save.

To create a new vendor:

  1. Go to Expenses, then Vendors (Take me there).
  2. Select New vendor, then fill out the fields using the info you took note of earlier.
  3. Once you’re done adding their info, choose a currency from the Currency ▼ dropdown.
  4. Add a currency to their display name, then select Save.
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