I am setting up the books for a company that provides services to customers in Canada and the US. The company offers the same 10 services in each country. Customers in each country are billed in their respective currency. I would like to track CAD revenue and USD revenue in separate accounts. It seems the only way to do this is create the same set of services (Products and Services) for each country the only difference being the income account they are associated with. When creating invoices, users would have to choose the service that is associated with the correct income account. Is this the best practice or is there another way to handle this?
QB is only allowed to set the home currency for the pricing of Item List. If you are selling merchandises, you may utilize the inventory management app as workaround to manage multi currency list price. We have yet to find any workaround for the service business. You may set 2 different pricelist groups for each country. e.g Service A1 for CA-based client costs CAD1, Service A2 for US-based client costs CAD1.1
Then you may have 3 options to accept payment from your US-based client:
Being able to track sales the way you want is what QuickBooks Online is all about. I can help go over how to do this and how the multi currency feature can help with this.
QuickBooks Online makes it easy to track sales from other countries using the multi currency feature. This feature allows you to set up accounts using currencies from all over the world and even set a customers preferred currency. The best way to track the sales of each currency to different accounts would be to create an item for each and assign it to that account. In order to make an account in QuickBooks Online you can follow these steps.
- Go to Settings ⚙, then select Chart of Accounts.
- Select New to create a new account.
- In the Account Type ▼ dropdown menu choose an account type.
- In the Detail Type ▼ dropdown, select the detail type that best fits types of transactions you want to track. Learn more about detail types.
- Give your new account a name. You can use the info under the detail type to add a name that fits.
- Add a description.
- Select the currency you wish to use.
- Choose when you want to start tracking your finances. In the Unpaid Balance field, enter the amount in the account, and determine the as of date. Enter today's date if you want to start tracking immediately.
- Select Save and Close.
Once the account is made you can follow this article to create the service items for each country. Another option would be looking into a third party app to help track multi currency sales in your QuickBooks Online account. You can browse the app page by going to Apps on the left hand side.
If you wish to have the ability to select which account an item revenue is sent to prior to the sale you can send feedback to our technicians by following this steps.
- Select the Gear icon at the top, then Feedback.
- Enter your comments or product suggestions then select Next.
- You'll be provided a list of suggested Help articles related to your comment. You can read through them or select Skip and send message.
- From the drop-down, choose the appropriate category, then select Send message.
Hope this was able to help!
Thanks for your help on this Nick. Do I understand correctly then that, if I want to have the exact same service (e.g. 'Web design') tied to 2 different revenue accounts (each in a different currency), I need to create separate instances of the service for each? For example: 'Web design (CAD)' would be tied to a Canadian dollar revenue account and 'Web design (USD)' would be tied to a US Dollar revenue account. Is that correct?
I'd be happy to clarify the answer to help you get this sorted out.
In QuickBooks Online you can assign an item to one account at any given time. In order to help save time the best way to have CAD and USD sales tracked to different accounts would be to create an item for each. Once the item is created you can link it to the right account and be able to sort the revenue by currency that way.
Hope this helped clarify the resolution.
Thanks Nick. You've confirmed my understanding. It seems a bit redundant to have duplicate service items for each but I can work with that. Just wondered if there was a different (better) way. Thanks again.