Here is everything you need to know about QuickBooks Accountant
QuickBooks Desktop enables you to keep track of the transactions made in foreign currency. The Multicurrency feature in QuickBooks allows you to allocate specific currency type to the accounts and profiles as follows:
- Price levels
- Bank accounts
- Credit card accounts
- Accounts payable
- Accounts receivable
Steps to turn-on multicurrency feature in your QuickBooks
Step1: Enable the Multicurrency feature
- Open to Toolbar and click on the Gear icon.
- Go to Your Company and select Account & Settings or Company Settings.
- Next, click on the Advanced tab.
- Now, look on the Currency section and tab on the edit icon. Click on the Home Currency.
- Click on the Multicurrency box in order to turn on the feature then click on Save.
Step 2: Add foreign-currency customers & vendors
You can allocate only one currency per vendor or customer profile. You will be required to create a new profile in order to assign a new currency.
To add foreign-currency Vendors (or Customers):
- Go to the Vendors (or Customers) menu, then Vendors centre (or Customers centre)
- In the Vendors centre (or Customers centre), choose the New Vendor: job (or New Customer) then drop-down and select New Vendor (or New Customer).
- Assign Vendors (or Customers) Name & Currency.
- Click on OK.
Step 3: Add foreign-currency accounts
You can allocate only one currency for each account. You will be required to create a new account to perform foreign-currency transactions.
Follow the steps to add a foreign-currency account:
- Open the Lists menu and go to Chart-of-Accounts.
- Right-click on any blank space of Chart-of-Accounts page and choose New.
- Select the suitable account Type then assign a new name.
- Click on Save then Close.
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Step 4: Update exchange rates
QuickBooks downloads rates only for those currencies that are active. Besides, you can download the rates only if the home currency is set to the US dollar.
To download exchange rates:
- Open the Lists menu and select Currency List.
- Next, click on Activities button then hit on Download Latest Exchange Rates.
To enter exchange rates manually:
- Go to the Lists menu and select the Currency List.
- Double-click on the currency.
- Then update the currency exchange rate for a specific date(s) in the opened Edit Currency page.