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Enable Multiple Currencies in QuickBooks

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Enable Multiple Currencies in QuickBooks

Multiple currencies in QuickBooks is a feature that enables a firm to assign a specific currency type to profiles like that of Customers, Vendors, Price levels, Bank Accounts, Credit Card Accounts, Accounts Receivable, and Accounts Payable.

Apart from this facility, this feature also enables the following:

  • Tracking and managing currency exchange rate fluctuation.
  • Paying and receiving of payments in a vendor’s or customer’s currency
  • Revaluing a currency

This feature is beneficial for a firm that deals in multiple currencies. Once the multi-currency feature is enabled, you should know that it can’t be hidden or turned off in QuickBooks. The home currency can’t be changed too.

What are the consequences?

Once the feature has been enabled, things that are ought to take place:

  • Depending on the location of your country, the current currency gets set as the default currency
  • You can change rates as per updates
  • As soon as a new vendor is added, the currency can be added specifically to their country
  • The currency column will be flashed in the Chart of Accounts
  • The foreign currency automatically gets converted to the home currency

Steps to Enable Multiple Currencies in QuickBooks

It is important for a firm or user to understand the steps involved in turning the feature on.

There are multiple steps to get this done. Let’s explore the steps that can be helpful:

Total Time: 13 minutes

Step 1

Multi-currency feature needs to be turned on. First of all from the QuickBooks Edit menu, choose Preferences

Step 2

Now Multiple Currencies should be selected from the left panel

Step 3

After this, we need to navigate to the Company Preferences tab and should click on Yes, I use more than one currency

Step 4

Now from the drop down, select the Home Currency

Step 5

After this step, time for adding foreign vendors and customers

Step 6

Now in this step assign one customer to each currency

Step 7

By default, all the customers as well as vendors will be assigned the home currency as soon as the feature is turned on. If you choose to close open balances, you need to use the same home currency vendors and customers

Step 8

For any new sale or purchases, you may use the foreign currency, however the home currency should be continued to use unless you close the open balances

Step 9

If there is any similarity in the name of the vendors, tweak it a little so that there is no confusion later. You can do this by selecting Customer Center from Customer or Vendor menu. In the Customer Name, select New Customer or Job, then from the drop down choose New Customer or New vendor

Step 10

Now assign the Customer or Vendor you wish to add and then the Currency

Step 11

After this click on OK

Step 12

Time to add foreign accounts by assigning one currency for each account so that you will be able to create new accounts for foreign account

Step 13

All the existing accounts will be assigned to home currency by default

Step 14

Continue using the same home currency until the open balances are closed

Step 15

Now assign currencies to BankCredit CardAccounts Receivable and Accounts Payable

Step 16

From the menu Lists, select Chart of Accounts

Step 17

Right click and then select New

Step 18

Appropriate Account Type needs to be chosen and then a name needs to be assigned

Step 19

Now click on Save and Close

Step 20

Now update exchange rates by selecting Currency from Lists menu

Step 21

Click on the Activities button and select Download Exchange Rates

Step 22

You need to now create foreign transactions. If you have assigned Home currency to an existing customer and you are expecting a payment, don’t try to change the currency to foreign currency otherwise the transaction will be incomplete

This feature of Multi currency is available for QuickBooks Essential and QuickBooks Plus. It is important that one uses an expert or a professional so that there is no discrepancy in the adjustments of currencies. It is important for any firm dealing with more than one country. It makes task friendlier and convenient so that no glitch happens while making any important decision.

It is difficult for one to keep updated with the exchange rates and it is not easy. Exchange rate can be updated manually which is the most preferred method and staying on top of your transactions is always the best idea.

There are pros and cons of enabling multi-currency feature. It can help you from downloading latest exchange rates to separating one country’s vendor from another. The cons is that once this feature is enabled, there will be constant pop ups reminding you of any new customer or vendor updated. This should be helpful when you are a forgetful person and need to be reminded of the currencies you need to enter. The little reminders can be an annoying factor too. Although, it is tedious to get the feature started, the features are trustworthy and beneficial. One more important thing to keep in mind is to use the same rate as the original invoice or bill.

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