QuickBooks Multi Currency: How User Set up and Use Multi Currency?

QuickBooks accounting software has multiple characteristics which makes the life easy for the user. Multi currency is one of those character which helps you to track overseas transactions and assign a particular currency to an overseas seller. However, you can only assign one currency to one customer. To assign International currency, you are required to create new profiles. Once you turn on QuickBooks Multiple Currency, you cannot turn it off.

With the help of this article you can set up QuickBooks Multi currency and enable it. We have tried to cover all the steps of setting up and enabling this function in this article blog. However, if you feel stuck to perform any of the steps, please feel free to talk to the experts.

To begin with, we are going to begin with some crucial points that you are required to review prior to set up QuickBooks Multi-currency.

What is Multicurrency in QuickBooks?

Multicurrency enables you to pay and receive money in foreign currencies from customers, bank accounts, or suppliers that don’t use your home currency. Once enabled, you can enter transactions in another currency, and QuickBooks will take care of all currency conversions.

Points Prior to Turn on QuickBooks Multi Currency

Review the below-mentioned points prior to turn on QuickBooks Multi Currency.

Once you turn on the multiple currency function, you are not allowed to turn it off. So, it is required to know the terms and conditions prior to turn on this function. You have to that you have taken the backup already for your company’s file. Please go through to the following points too:

• Fixed Asset Manager and Statement Writer only utilize U.S. currency. They won’t be affected by turning on the multiple currency function.
• Once turning on this feature, the user will be unable to use income tracker, insights and bill tracker. You cannot enter the batch invoices or delete transactions either.
• The user will be unable to choose multiple customers in the Invoices.
• The information will not be exchanged with QuickBooks desktop for Mac or the user is not able to copy the company file.
• In invoices, online payment will stop working for multiple currencies.

How to Set up QuickBooks Multi Currency?

The multiple currency allows you to allocate a specific currency type to the accounts such as Accounts receivable (A/R), Accounts payable, bank accounts, vendors, customers, credit card accounts, and price levels.

Here are mentioned few steps to turn on Multi-currency in QuickBooks:

Step 1: Turn on Multi Currency

• In the Edit menu, choose Preference.
• Choose QuickBooks Multiple Currencies.
• After that, you are required to select the Company Preferences tab and select h option Yes, I use more than one currency.
• And at the last step, you are required to click on home currency.

Step 2: Add Customers and Vendors (Foreign Currency)

Firstly, you are required to know that only single currency can be assigned to single supplier or vendor profile. If you wish to allocate a new currency, then you are required to make new profiles.

• In the Supplier menu, select the supplier Center.
• After that, just hit on the New supplier: job or New Vendor.
• Once it’s done then, you are required to assign a Currency and a Supplier Name.
• Choose OK.

Step 3: Add Accounts (Foreign Currency)

Just remember that for each account you can only allocate single currency. You are required to create a new account if you wish to assign the international currency. Current account will be allocated to home currency once this function is on. You cannot change the currency for accounts with previously added transactions. Here, just adhere the steps mentioned below to add accounts:

• Among the Lists menu, you need to select the Chart of Accounts.
• After that, you are required to select New by right-clicking anywhere.
• Select the proper account Type.
• Assign a name.

Step 4: Update Exchange Rates

You can download rates for active currency only. You can download rates only if home currency is the US dollar.

Steps to Download Exchange Rate

• In the initial step, you are required to open the Lists menu and choose the Currency List.
• After that, you are required to choose the task and later, hit on Download Latest Exchange Rates.

Steps to Enter Exchange Rates

• Choose the Lists menu and select the Currency List.
• Double-tap on currency.
• Choose the Edit Currency window option & click on the update the currency exchange rates.

Step 5: Make Foreign Currency Transactions

You are required to utilize the international currency accounts or names which are included for new international transactions.

You should not utilize the new foreign currency variant of the client to get installment against that receipt if, you already have an open receipt for a current client that has your home money. Preferably, continue make use of the home currency variant of the client to complete the transaction.

• You do not assign cash to purchase & sales transactions since they are allocated the currency of the client or seller that have been entered by you in the form.
• Select the home money estimation of the exchange.
• Aggregate deals & buy exchanges are in the supplier’s currency and the home cash proportional is recorded for the exchange complete.
• All of the reports will consistently reflect the home currency.

Step 6: Deposit Payment to a Bank with a Different Currency

You can deposit payments to a bank with a different currency, with multicurrency.

• The invoice payment should be deposited into your bank account in the same currency.
• Then select New and choose Transfer.
• For each field choose the accounts:
  • Transfer Funds From: Account from where you take the money.
  • Transfer Funds To: Account from where you transfer the money.
  • Currency: The value of the Transfer Amount field depends on the currency you choose. If you haven’t already set the exchange rate, you must do it now. For example, select US Dollars as the currency and then you have to enter $5.00 in the Transfer Amount filed. $5.00 worth of the cash will be transferred by QuickBooks.
  • Transfer Amount: The amount you will deposit in the account. This amount is not absolute because it depends on the currency and exchange rate for its overall worth.
• For the invoice in Transfer Amount enter the value of the payment.
• Enter the exact date as the invoice and then choose Save and Close.

Step 7: Pay Employees using a Different Currency

You must make a new vendor using the data from your employees in order to pay your employees in a foreign currency.

Step 1: Create a Vendor with Your Employee’s Info

Make sure the data accurately reflects the profile of your employee. Select Payroll, and then select Employees to check. Then find the employee whose salary you wish to transfer in a foreign currency.

• First, You have to go to get paid and pay or Sales and expenses, then you have to select Vendors.
• You have to select New vendor, and fill the details with the employee info.
• From the Currency, dropdown choose a currency.
• To display their name add a currency and then select Save.

Step 2: Pay Your Employee

• You have to select +New and then choose Expense.
• From the Payee dropdown menu, you have to select the vendor that you created with your employee’s info.
• Select the account you track your payroll expense with from the Category dropdown.
• Lastly, you have to select Save.

Step 7: Change an Assigned Currency for a Customer or Vendor

Create a new customer or vendor and then assign the new type of currency.

Step 1: Make Your Vendor or Customer Inactive

To Make a Customer Inactive:

• You have to select Customers by going to Customers and leads.
• Then search and select the name of the customer with that you want to change currency.
• Take note of all their information by clicking on Edit.
• Return to the Customers list by selecting Save.
• Then search for the same customer and choose the Action dropdown menu.
• Choose Make inactive, and click on Yes to confirm the request.

To Make a Vendor Inactive

• Select Vendors by going to Get paid and pay or Sales and expenses.
• Search the vendor you want to change the currency to and then select their name.
• Then take note of all their information by selecting Edit.
• Return to the Vendors list by clicking on Save.
• After that search the same vendor and then select the Action dropdown menu.
• Choose Make inactive, and to confirm the request click on yes.

Step 2: Create a New Customer or Vendor

To Create a New Customer:

• Select Customers by going to Customers and leads.
• By selecting New customer, fill out the fields using the info that you took note of earlier.
• Choose a currency from the Currency dropdown after adding their info.
• Then add a currency to their display name and then select Save.

To Create a New Vendor:

• Select Vendors by going to get paid and pay or Expenses.
• Now select new vendor and then fill pit the fields by using the info you took note of earlier.
• After adding their info, you have to choose a currency from the Currency dropdown menu.
• To their display name add a currency and then select Save.

How to Use QuickBooks Multi Currency?

If there is customer who has home currency in US dollar and base currency is the Canadian dollar. According to this illustration, foreign currency is the Canadian dollar. Please adhere the steps mentioned below to use QuickBooks multi currency:

• Choose Customers > New Customers.
• Now, select the Payment and Billing
• Once it’s done, begin with the list like Customer Pays Me & select the Customer’s currency.
• Save the Customer.
• Later click on save option, examine the supplier list page, the supplier name and overseas currency will appear on this list.
• The domestic currency supplier appear domestic currency.
• Open the Invoice window, Select overseas transaction
• Later, QuickBooks naturally shows the supplier’s name and two currencies (the first one is overseas currency and other is the domestic currency) connected to the transaction.
• Make an addition of item to the invoice.
• After that, suppliers are able to know how much to pay when the Balance Due to entry shows in the overseas currency.

QuickBooks Multi Currency is a useful feature for its users. The above blog will help you in knowing the steps to set up and enable this feature in QuickBooks. In case, you face any challenge to understand about multi-currency in QuickBooks or required some more guidance for the same, then do not hesitate to get in touch with Dancing Numbers expert and get consultation.

With the help of the above article, you can clear your doubts regarding QuickBooks Multi-Currency. You can know how to set up and use multi-currency with simple steps. All important topics regarding QuickBooks Multi-Currency have been included in this blog. In case you are still facing any issue related to this then you can simply connect with Dancing Numbers experts via LIVE CHAT.

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