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Foreign Currency - update historical rates

Hi - I'm new to QB and just trying to figure out how QB handles currency (in particular for Profit and Loss items) as I'm running into some issues, but don't know if it's just the way I'm doing things.

 

Background: We operate with just two currencies - CAD is our reporting currency, but daily transactions are done in USD. We have moved from FinancialForce. For Profit and Loss items, we used to wait until month end and run a currency revaluation for the entire month using the average rate - one process and a few minutes to do. I understand QB is based on a daily rate rather than monthly average.

 

My issue is, if I do not enter a USD > CAD rate in advance, and someone posts a USD entry (e.g. a sales invoice), it will get recorded at a rate of 1:1, or at the last entered rate. 

  • I do not want to review and manually update hundreds of transactions at the end of month.
  • I do not really want to ask the whole finance team to start updating currencies as I want to retain control/oversight of what rates are used.
  • I do not really want to do home adjustments for every single day as that would feel very inefficient in terms of time wasted.

What is best practice here:

  1. Is there any way to get QB to automatically grab the FX rate at the start of a day?
  2. Is there any way to get QB to automatically grab historical FX rates and batch update records rather than just the current?
  3. If the answer to the above two are no, can I easily batch update FX rates used for a certain period?

Thanks,

Daniel

Solved
Best answer 04-22-2019

Accepted Solutions
QuickBooks Team

Re: Foreign Currency - update historical rates

Hi there, danielk1.

 

Thanks for reaching out to the QuickBooks Community. Let me help share some insights about the multi-currency in QuickBooks Desktop.

 

I appreciate the detailed information you've provided. QuickBooks cannot generate the exact conversion in advance since the rate is subject to change. Once you post a USD entry for a specific transaction, it will be recorded at a rate of 1:1 or the last entered rate.

 

To answer your first question, the option is, you'll need to change the As Of Date and Exchange Rate manually so QuickBooks automatically grab the FX rate at the start of a day (attached screenshot). 

 

For your second question, you can use the home currency adjustments this will calculated based on the difference between the exchange rate recorded with each transaction and the exchange rate as of the home currency adjustment.

 

 It's calculated on:

  1. Open Accounts Payable transactions in a foreign currency.
  2. Open Accounts Payable transactions in a foreign currency.
  3. Balance sheet account balances for which transactions in a foreign currency are supported (i. e., bank accounts and credit cards). 

Lastly, there isn't an option to update the FX rates by batch for a certain period. Instead, you'll need to change it manually. 

 

For additional reference, you can check this article: Set up and use Multi-currency

 

If you need further assistance with the process, I encourage you to contact our QuickBooks Desktop Support Team. They have additional tools to pull up your account and do a screen-share. 

 

Here's how you can contact our customer support: 

  1. Select QuickBooks Desktop Help from the Help menu.
  2. You can also press F1 on your keyboard to bring up the same Help Panel
  3. In order to route you to the correct support expert, we need to know what type of question you have.
  4. Click Continue.
  5. We’ll provide you a few options. You choose which one is best for you.

Please know that you're always welcome to post if you have additional questions about the Multi-Currency. Wishing you and your business continued success. 

 

2 Comments
QuickBooks Team

Re: Foreign Currency - update historical rates

Hi there, danielk1.

 

Thanks for reaching out to the QuickBooks Community. Let me help share some insights about the multi-currency in QuickBooks Desktop.

 

I appreciate the detailed information you've provided. QuickBooks cannot generate the exact conversion in advance since the rate is subject to change. Once you post a USD entry for a specific transaction, it will be recorded at a rate of 1:1 or the last entered rate.

 

To answer your first question, the option is, you'll need to change the As Of Date and Exchange Rate manually so QuickBooks automatically grab the FX rate at the start of a day (attached screenshot). 

 

For your second question, you can use the home currency adjustments this will calculated based on the difference between the exchange rate recorded with each transaction and the exchange rate as of the home currency adjustment.

 

 It's calculated on:

  1. Open Accounts Payable transactions in a foreign currency.
  2. Open Accounts Payable transactions in a foreign currency.
  3. Balance sheet account balances for which transactions in a foreign currency are supported (i. e., bank accounts and credit cards). 

Lastly, there isn't an option to update the FX rates by batch for a certain period. Instead, you'll need to change it manually. 

 

For additional reference, you can check this article: Set up and use Multi-currency

 

If you need further assistance with the process, I encourage you to contact our QuickBooks Desktop Support Team. They have additional tools to pull up your account and do a screen-share. 

 

Here's how you can contact our customer support: 

  1. Select QuickBooks Desktop Help from the Help menu.
  2. You can also press F1 on your keyboard to bring up the same Help Panel
  3. In order to route you to the correct support expert, we need to know what type of question you have.
  4. Click Continue.
  5. We’ll provide you a few options. You choose which one is best for you.

Please know that you're always welcome to post if you have additional questions about the Multi-Currency. Wishing you and your business continued success. 

 

Not applicable

Re: Foreign Currency - update historical rates

If you just want to post a foreign currency sales invoice today that is dated in the future,  you may just want to create a recurring template of the invoice dated into the future and set it up so that the invoice will be auto entered in the future.  Not sure if this answers your question.

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