How to Set Up and Use Multi-Currency in QuickBooks Enterprise

Brought by Intuit, QuickBooks is accounting software that comes with related features. Multi-currency is one of the features in QuickBooks that enables you to track foreign currency transactions. Since the first international dealings require

Customers
Credit card accounts
Vendors
Accounts receivable
Price levels
Bank accounts
Accounts payable

Set up of Multi-Currency in QuickBooks

Learn here to set up and use QuickBooks Multicurrency. But you need to backup your company file before turning on multi-currency in QuickBooks. Because once you turn on Multicurrecny, you cannot turning it off. Now you should also consider these points given below before turning on the Multicurrency feature in your QuickBooks:

There are some QuickBooks Desktop add-ons tools/features that will use U.S currency continuously that will not affect by activating multicurrency in QuickBooks. such as Fixed Asset Manager and Statement Writer.
You are no longer to use Insights, Income Tracker, and Bill Tracker after enable the multicurrency feature. And also you cannot allow entering void check transactions in QuickBooks or invoices in QuickBooks Enterprise and Accountant.
For Time and Expenses window, you are not allowed to select multiple customers in the Invoices.
You cannot move or exchange data for Mac from QuickBooks Desktop.
Online payment of invoices doesn’t work with multiple currencies.

Now we will see some additional fields and levels that have been added by quick books are as follows-

A currencies list is created by Quickbooks, it can be seen by clicking Gear > currencies (under lists).
You can see that after adding the name of consumer and supplier we can proceed for choosing currencies.
In the chart account, the currency column appears. We should keep in mind after posting the transaction by account we can’t change the currency.
At last but not least is a payment, deposit, sales tax, and the due columns on the bank all present credit account histories show the currency appearance.

Uses of Multi-currency in QuickBooks

Click the gear icon, select company settings, select advanced, and then the currency
Check the multicurrency checkbox to turn on the multicurrency feature. Once it turned on, it can be turned off
To manage the list of currencies available, click the gear icon, select list, and select currencies
Once you set up your list of currencies, set up a foreign currency account in QuickBooks
Click the Gear icon, select chart of accounts, and select new
Fill the required fields on the screen and select the currency you want in the currency dropdown list
Click Save and close to save the new account

EXCHANGE RATES: MULTICURRENCY

Now we will take some steps so that the exchange rate should be kept accurate-

The exchange rates are being downloaded by QBO every four hours so that it could be updated in QBO.
Wall Street on-demand service is similar to source
After editing exchange rates you can use another source if u want.

How can you update your exchange rates

Thre are two different steps involved in this and remember that QuickBooks Desktop downloads rates only for the active currencies. And one advance is that you can download rates only if your home currency is the US dollar. So here begin the steps:

Steps to download exchange rates:

Open the Lists menu bar, and then goto the Currency List.
Now choose the Activities button and click on the option to Download Latest Exchange Rates.

Steps to enter exchange rates manually:

Open the Lists menu bar, and then goto the Currency List.
Then double-click on a currency.
After that, go to the Edit Currency window, and update the currency exchange rate for a specific date.

ENABLE MULTI-CURRENCY in QuickBooks

You can select the company setting after clicking on the gear icon.
Go and select Advance.
You have to scroll down to currency and then click on the pencil item.
The Multicurrency checkbox will be selected.
The Click Save will we select at last.

AFTER TURNING ON MULTICURRENCY WORK DONE BY QUICKBOOKS.

CURRENCY LIST

A currency list that holds the currencies of many other countries is added by QBO. It can be added easily if you are not getting the currency that is asked by your client.

CURRENCY FIELD

Customer and supplier to currency field and some balance sheet accounts, this shows how the transaction could be done.

TRANSACTION FIELD

Here we will add a new field to the transaction so that it could be easily displayed by the customer or supplier currency.

CURRENCY COLUMN.

Charts of columns are added by currency by a currency column.

ASSIGNS CURRENCY.

Home currency is being assigned by all accounts, After enabling multi-currency.

How to add currencies you use

Go to the Settings option.
Then chose the Currencies list. A reminder this option is only visible once you turn on multicurrency settings.
Hit on the option to Add currency.
From the drop-down menu of the Add Currency section, choose your new currency option.
Then click on Add to add the currency in your list.

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How to delete currencies you do not use

Go to the Settings option.
Then chose the Currencies list. A reminder this activity is only possible if there is not any transaction attached to the currencies you want o delete.
From the in the Action column, hit on the small arrow icon and then choose the option to Delete.
Then hit on the Yes button to confirm and save your changes for deletion.

Here is a video guide for you to set up the multi-currency easily in QuickBooks. Have a look;

Advantages And Disadvantages of Multi-currency

Read the following to know the advantages and disadvantages of using multi-currency;

Advantages

FOREIGN TRANSACTION FEES GET ELIMINATED: Nowadays we all do international transactions and send money from one country to another country. Due to this, we pay a lot in the form of a foreign transaction fee. So in multicurrency, there is no need to pay any transaction fee. By taking this big step foreign customers become more loyal. And they will also appreciate saving their money and keep their trust in you.
IMPROVES CUSTOMER LOYALTY: As we know that being loyal is how much important in today’s life. And when the customer has no confusion regarding bill payments and they get cleared on this, that how much they have to pay how much you have charged if they get cleared on this point trust me this will boost your customer’s loyalty. After that, they will make their trust in your business and never think that they are being looted by you.
REDUCES CHARGEBACKS: When a customer is paying you money and he is in confusion regarding his chargebacks. At the same time make it clear otherwise it can create a big dispute between you and them. Because this can lead your business in cashback. This is not only annoying can also waste your time.
MARKET DIFFERENTIATION: If you are doing any business and your transaction is being done in the same currency that is used by your competitors. In this case, then give the upper hand.

Disadvantages

This can only be used by foreign people in other countries

MULTI CURRENCY TRANSACTION AND WORKFLOW: The regular transaction is the same as creating multi-currency transactions. The transaction must be part of the exchange rate so that it can be edited. Editing doesn’t require when the exchange rate is new.
REPORTING ON MULTI CURRENCY TRANSACTION: The several present reports that help your client to report on the multicurrency transaction are contained by QuickBooks. Multi-currency could be added so that you can report about the currency that is in your home.

THE PRESENT REPORT INCLUDE FOLLOWING:

Realized EXCHANGE GAINS AND LOSSES: You will face profit and loss when you are going to work with multiple currencies. To see how much you have gained or lost on the multi-currency transaction you have to create a report.
UNREALIZED EXCHANGE GAIN OR LOSSES: The transaction that is affected by unrealized gains or losses is the only day in which you entered or created the report.

I hope this post is able to resolve your queries relate to multi-currency in QuickBooks. If you still have any questions in your mind then feel free to content our toll-free customer service +1-844-405-0904 and talk to a QuickBooks ProAdvisor now.