How do I set up an item in USD in order to create a USD purchase order for a USD supplier? The default is CAD and when I create a PO it converts incorrectly.

I'll walk you through the process of creating multi-currency items in QuickBooks Online (QBO), @DorothySela.

If you have transactions in different currencies, QuickBooks' Multi-currency feature makes it easy to record  without worrying about currency conversion. 

Since your supplier does not use your home currency, we can activate multiple currencies. Once multi-currency is activated, it can no longer be deactivated. Just a heads up, this feature is only available in the Essentials and Plus version.

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. Select Edit ✎ to modify your currency settings.
4. Choose the Multi-currency checkbox.
5. Click on Save and Done.

After that, we need to make the existing profile inactive and create a new one to assign new currency. This records the transaction in the currency you pay them with.

Here's how:

1. From the left menu, go to Expenses and select Suppliers then New Supplier.
2. Enter the supplier's name and other info.
3. From the I pay this supplier with ▼ dropdown menu, select the currency you use to pay this supplier.
4. Select Save when you’re done.

When you use the Multi-currency feature, you can assign a currency to bank accounts and credit card accounts. This allows you to pay and receive payments in the supplier's currency.

To add a foreign currency account:

1. Select Settings.
2. Select Chart of Accounts, then New.
3. In the Account dialog, select the appropriate Account Type and Detail Type.
4. Enter a Name for the new account and an optional Description.
5. Select the currency to assign to the account from the Currency ▼ drop-down menu.
6. Select Save and Close.

You can refer to this link for more information about adding transactions in a foreign currency.

Please don't hesitate to update us if you have tried the steps provided in the articles above. We'll be more than happy to get back to you. 

Thanks for the detailed reply. I have already made our instance Multi-Currency and have dealt with years of bills, invoices etc in various currencies.

My challenge is creating a PURCHASE ORDER in USD based on items in the products and services module. The only option is to enter Cost (CAD) even though the supplier is USD.

I don't see a way to set up a product/service in anything other than the home currency. My challenge is that I won't know the home currency value until the transaction is completed. I do however know the USD pricing on the items for the Purchase Order. Make sense? LOL

Hello there, DorothySela.

We use the default Home Currency when you create an item that's why you don't have the option to select a different currency. It's possible that your Home Currency settings is set to CAD instead of USD. Because of this, your purchase order will automatically be set to CAD. 

I can walk you through how to check your currency settings:

1. Click the Gear icon and select Account and settings.
2. From the left menu, click Advanced. 
3. Select the Currency section and look into the Home Currency section.
4. Click Done.

If you set a different Home Currency, you'll want to manually enter the exchange rate for the item.

For additional reference, you can check this article: Enable and use Purchase Orders in QuickBooks Online.

Please know that you're always welcome to post here in QuickBooks Community if you have any other concerns. Have a good one. 

Thanks again, we’re in Canada, so the home currency is CAD. I guess I’ll have to manually overwrite the USD in the purchase orders.