What happens when you turn on the multi-currency feature in QBO… • You can no longer change your home currency. • The Currencies list, where you can manage your currencies, is added as an option under Lists when you select the Gear icon on the Toolbar • You can specify a currency when you add a customer or vendor. • A Currency column appears in the Chart of Accounts, identifying each account's assigned currency. • Once an account has had a transaction posted to it, you can no longer change the account's currency, • A currency notation appears in the Payment, Deposit, Tax, and Balance Due columns on Bank and Credit card registries (or account histories) • Both currencies are noted in the Amount column on sales and purchase forms. • Reports convert all foreign currency to Home currency amounts, and automatically reflect exchange rate changes. • QuickBooks downloads exchange rates nightly from WSoD (Wall Street on Demand). You can also manually enter exchange rates and revalue them if needed. • You can't use different currencies in one transaction. How to assign a foreign currency to a customer… You will need to create a new customer since the customer’s previous invoices have been in USD. 1. Create the new customer as you normally would. 2. Under Payment and billing, you will see a new option called “This customer pays me with”. 3. Select the customer's currency, in this case GBP. This is the currency that the customer uses to pay you for products or services. 4. Select Save. Applying (Matching) the payment to the invoice in Quickbooks Banking The payment will most likely show up as an unmatched deposit and be slightly different than the invoice amount due to the exchange rates. 1. Click on the transaction to expand the view and see more details. 2. Select ‘Find Match’. DO NOT ADD. 3. Select the foreign currency option rather than the default home currency. 4. The invoice should be there. (hopefully) 5. Select the invoice. Hit Save and Close…even if it doesn’t match. 6. Check the customer account to make sure the invoice is marked paid. 7. Quickbooks automatically creates an account called Exchange Gain or Loss. The difference in the exchange rate should be in this account.
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