Use the Inventory as different currency with Home Currency

deaung · ‎July 10, 2023

We are facing an inflation situation in our country. But locally, we only use Home Currency (MMK), and every expense is paid in MMK. We purchased the item from another country in USD, and we want to store Inventory Value in USD, but we still want to pay for employee salary, and other expenses in MMK.

The reason is when we quote to the client, we want to convert inventory items USD into up-to-date MMK exchange rate, but still our expense will be recorded in MMK. Now we use home currency MMK, and when we quote to client or issue the invoice, we have to change price manually base on up-to-date MMK rate.

If you have a better solution for the inflation situation, please let us know, how can we record the Inventory value in USD, not home currency USD.

Thanks!

Archie_B · ‎July 10, 2023

Hi there, deaung. I'll share some information about the multi-currency feature and how it works in QuickBooks Online

Once you enable multicurrency, QuickBooks uses exchange rates to calculate the home currency values of your foreign currency transactions. QuickBooks downloads and applies exchange rates from Market.

Setting up currency values for each inventory item in QuickBooks is currently unavailable. To properly track currency conversion in each purchase and client/customer transaction, you can assign a foreign currency by creating a new customer or supplier. First, let's make our supplier or customer inactive:

To make a customer inactive:

Go to Customers & leads, then Customers.
Find the customer you want to change the currency, then click their name.
Select Edit, then take note of all their information.
Hit Make inactive, then Yes to confirm the request.

To make supplier inactive:

Go to Get paid & pay and choose Suppliers.
Find the supplier you want to change the currency, then click their name.
Select Edit, then take note of all their information.
Hit Make inactive, then Yes to confirm the request.

After that, create a new customer or supplier with their new currency.

To create a new customer:

Go to Customers & leads, then Customers.
Select New customer, then fill out the fields using the info you took note of earlier.
Once you’re done adding their info, go to the Payment and billing tab.
Choose a currency from This customer pays me with ▼ dropdown.
Add a currency to their display name, then click Save.

To create a new supplier:

Go to Get paid & pay, then Suppliers.
Select New supplier, then fill out the fields using the info you took note of earlier.
Choose a currency from I pay this supplier with ▼ dropdown.
Add a currency to their display name, then select Save.

I'm adding this article for more common questions about the multi-currency feature: Multi-currency FAQ.

You can also bookmark this link for future reference if you want to learn how to enter your own exchange rates in QuickBooks Online to use for foreign currency transactions: Enter and use your own exchange rates.

Let me know if there is anything else I can do to assist you with multi-currency and exchange rates. I'll be happy to help you further.