Here in this article, we are describing how to set up and use of Multi-Currency in QuickBooks. In most of the businesses, especially in Online Businesses, Multi-Currency transactions done by selling anything to the customers all over the world. Intuit QuickBooks discovered a dynamite multi-currency function in 2009 available in the windows version.
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Multi Currency in QuickBooks
Through QuickBooks Multi-Currency feature you can track income and expenses in Multiple Currency in the whole world and can track previous exchange rates. This feature gives you to assign a desired currency type to multiple currency profile and the account such as: Credit Card Accounts, Vendors, Bank Account, Customers, Account Receivable etc.
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Set-up Procedure to Enable Multi-Currency in QuickBooks:
This is the best feature than the other applications and easy to use once you learn how it works. So read and follow the instructions carefully.
To turn on Multi Currency:
- Go to the QuickBooks Edit Menu, Then select Preferences.
- Click Multiple Currencies on the left side.
- Then click the Company Preferences label and click Yes, I use more than one currency.
- Thereafter, Select your Home Currency from the drop down.
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To add foreign Customers and vendors:
You can allocate only one currency per customer or vendor profile. You have to make new profiles to allot a new currency.
- Existing customers and vendors will be allotted in your home currency after turned on this feature.
- Currency can’t be changed for names that already have recorded transactions.
- Go to the Customer/Vendor center to create foreign customers and vendors, If the name is already present (using your home currency) in the list, assign a bit different name to the foreign customer/vendor that you created.
- Go to the Customer(vendor) menu, Select Customer Center(Vendor Center).
- Click the New Customer(Vendor) to the drop down, Choose New Customer(Vendor).
- Appoint a Customer(Vendor) name and Currency.
- Click OK.
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To add Foreign Accounts:
You can allocate only one currency for each account. You have to create a new one for your foreign transaction.
- Existing Accounts will be allotted in your home currency after turned on this feature.
- Currency can’t be changed for accounts that already have recorded transactions.
- Currencies assigned to the following accounts such as: Credit Card Accounts, Vendors, Bank Account, Customers, Account Receivable(A/R) and Account payable(A/P).
Note: Currencies of the accounts of (A/R) and (A/P) should match customer’s(Vendor’s) currency used in all the transactions.
- Go to the Charts of Accounts to create foreign Bank and CC accounts as required.
- Select Charts of Accounts to the List menu.
- Do Right-click anywhere and select New.
- Then select the suitable Account type and allot a Name.
- Click Save and then Close.
To Update your Exchange Rates:
To download Exchange Rates
You can download rates at one condition if your residency lies in US(US dollar=$).
- Go to the list menu, Then choose Currency List.
- After that choose the Activities button and select Download New Exchange Rates.
For manually Enter Exchange Rates:
- Go to the list menu, Then choose Currency List.
- Double click to choose the Currency.
- Afterward, You can update the Currency Exchange Rates for a particular date/s in the Edit Currency window.
Important things to Create Foreign Transactions:
Note: You can only use the foreign accounts and names you added, for a new foreign transaction.
- Do not use foreign version for the existing customer to receive payments if you have an invoice for that customer who has been appointed for your home currency.
- You can not appoint a currency transaction to sales and purchase, due to they allotted the currency of the customers and vendors you entered.
- The amounts of sales and purchase transactions are in the customer’s and vendors’ currency and the value of home currency equivalent to the listed transaction totals.
- A home currency reflects by all the reports in any case of the currency used in all the transactions.
Important things you should know prior to using Multi-Currency feature:
- Multi Currencies turn on option is not reversible.
- Users should make a Backup file before enabling this feature in case they want to return to a single currency option.
- After multiple currency preference is turned on, Select the other currencies which you wanna track.
We hope. now you are able to set up Multi-Currency Feature in QuickBooks. If not or your QuickBooks not working properly, you can contact us at our toll-free number + 1-855-441-4417.