Could someone please advise me on multi currency.
We are a 501C3 based in the united states and our home currency is USD. We have a publishing program and the various platforms we partner with as distributors work in multiple currencies and we also pay royalties to authors in multiple currencies as well as hire contracted services who invoice us in their local currency.
In terms of book sales :
The sales reports we received are listed in the the original currency. For example for amazon.
We get a sales report for the month and on that is listed all the sales across all of amazons platforms
Each sale line item has product qty rate and then amount in the original currency whether that's CAD / USD / GBP / IN / EURO / AUD etc.
The about 2 months later when amazon pays us they provide the FX rate that they used - they pay per market - so all CAD sales converted into USD and paid / all GBP sales converted into USD and then paid.
In terms of Royalties paid :
Royalties are paid to the author in USD but through PayPal it converts into their local currency.
Contracted services :
Our marketing and design team are based in south Africa and invoice us in ZAR their local currency - our account statement is held in ZAR with them and they work on the rand value they receive on their end.
This means currently I have to manually enter each line item and manually convert each line item to usd to enter into QuickBooks because every transaction is in rands. Same goes for the bookkeepers invoices which are in GBP
I'm doing a massive data catch up and trying to work out each line item back to USD seems overwhelming.
My questions -
- If I assign an FX rate to an invoice - does QuickBooks change that FX rate or does my manual fx rate override QuickBooks assign fx rate for the day / period.
- Can I assign the FX rate per invoice or only per date range
- what , if any , are the drawbacks of using multi currency.
- is it easy to learn as I never used the function before :)
Thank you so much.
really appreciate your time and feedback
