Set up and use Multicurrency
by Intuit•3• Updated 3 months ago
Learn how to set up and use multicurrency in QuickBooks Desktop.
With Multicurrency, you can track sales and purchases in different currencies.
Once you turn on multicurrency:
- You can’t turn it off.
- Add-ons, such as Fixed Asset Manager and Statement Writer, only use US currency.
- You can’t use Insights, Income Tracker, Bill Tracker, or Advanced Track Mileage.
- You can’t batch enter invoices or batch delete/void transactions (Enterprise and Accountant only).
- You can’t select multiple customers in Invoices for Time and Expenses.
- You can’t exchange information with QuickBooks Desktop for Mac or copy your company file to work with it.
- You can’t receive online payments for invoices in foreign currencies.
- All existing customers, vendors, and accounts are assigned your home currency.
- You can assign foreign currencies to customers, vendors, price levels, and accounts (bank, credit card, accounts receivable, and accounts payable).
Step 1: Turn on Multicurrency
- Make sure you back up your QuickBookes company file before you continue.
- Go to the Edit menu, then select Preferences.
- Select Multiple Currencies.
- Go to Company Preferences, then select Yes, I use more than one currency.
- Select your home currency, then select Ok.
Step 2: Add foreign-currency customers and vendors
You can only assign one currency per customer or vendor profile. You need to create new profiles to assign a new currency.
Add foreign-currency vendors or customers:
- Go to Customers (or Vendors), then select Customer Center (or Vendor Center).
- In the Customer Center (or Vendor Center), select New Customer:job (or New Vendor), then select New Customer (or New Vendor).
- Enter a Customer (or Vendor) Name, then select a Currency.
- Select OK.
Step 3: Add foreign-currency accounts
You’ll need to create new accounts for your foreign-currency transactions. Each account can only have one currency.
Note: You can assign currencies to the following account types: Bank, Credit Card, Accounts Receivable (A/R), and Accounts Payable (A/P). QuickBooks will create other account types (income, expense, liability, and cost of goods sold) for each currency as you create transactions.
Add foreign-currency accounts:
- Go to Lists, then select Chart of Accounts.
- In the Chart of Accounts, right-click anywhere and select New.
- Select the account Type and assign a name.
- Select a Currency then select Save & Close.
Step 4: Update your exchange rates
You can only download rates for active currencies if your home currency is the US dollar.
Download exchange rates:
- Go to Lists, then select Currency List.
- Select Activities, then select Download Latest Exchange Rates.
Manually enter exchange rates:
- Go to Lists, then select Currency List.
- Double-click a currency.
- In the Edit Currency window, update the currency exchange rate for specific date/s.
Step 5: Create foreign-currency transactions
You're ready to make transactions with different currencies. Any transaction that has a name (like invoices, estimates, sales orders, bills, and checks) uses the currency assigned to the selected name. On transactions that don’t need a name, like general journal entries, you can select the currency.
Here are some things to remember when you create transactions:
- Exchange rates are part of each transaction and determine the home currency value of the transaction.
- Amounts on sales and purchase transactions are in the customer's or vendor's currency and the home currency equivalent is listed for the transaction total.
- Reports will always show the home currency regardless of the currency used in transactions.
- The currency on payments you receive or send must match the currency on the invoice or bill being paid.
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