Using the Multicurrency Feature in QBO

dollars and euros on a desk with calculator and graphs
alfexe_istock_multicurrency
Jody Linick
Owner
FitBooks Pro
Columnist
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I recently turned on the multicurrency feature in a client’s QuickBooks Online file and I’m still learning how to use it. In this article, I will offer a few observations as a new user of this feature and things to consider if you think one of your clients may benefit from multicurrency. 

Do Your Homework

Read the articles and Intuit docs on multicurrency before you flip the switch. Considerations include:

  • Once you turn it on, it cannot be turned off. 
  • You must state one home currency (USD, CAD, etc.) for the QBO file.
  • If you are using third-party apps, research how they might be impacted with multicurrency enabled.
  • Understand that you have to create Customers in each currency; more discussion on this below.
  • Understand the ins and outs of exchange rate gain/loss.

Note: This article will assume the home currency of the QBO file is US Dollars, or USD.

Things I Like About Multicurrency

1. Creates invoices with the proper currency icons. My client invoices some of her customes in Euros, some in Great British Pounds. Once we turned on multicurrency, the QBO invoices now show in Euros, instead of the “$” sign on invoices, or indicates “GBP” and the “£” sign for Great British Pounds. This makes the invoice look more professional and avoids confusion on the customer’s end regarding in which currency they are being billed.

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By jamer
Jul 27th 2017 18:14

How would it work if I have to pay my manufacturer in USD and receive some payments from ebay customers in USD?

Is it a similar process to this?

Thanks (1)
By jlinick
to jamer
Jul 28th 2017 16:27

Hi, you did not state what your home currency is. Of course, if it's USD, you just follow the normal QB procedures. I have not yet tried paying bills in another currency, only receiving payments. If your home currency is, say, CAD, I believe you would use your bank to get the bill paid in USD (the foreign currency), and then they payment will arrive in your CAD bank feed in the CAD equivalent amount. You would mark the bill as paid in full, which will trigger the automatic Exchange Gain or Loss feature, but yes, I suspect you may have to pay the bill out of a Clearing account to get the amount right for a Match in the bank feed. If you try it, let us know!

Thanks (1)
Aug 24th 2017 23:53

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