QuickBooks Online 2016 Tutorial: Multi-currency in QBO (US version)

[@lgschwarz731]

Hi Hector- I recently added a client using QBO and multicurrency with bank feeds. Euro Invoice, receive payment into US Bank (Wells Fargo) who converts from Euro to USD when the payment comes in. What is the process for receiving payments? I can't figure it out. 2 Invoices for $5000 Euro were sent and paid and the deposit in the bank feed center is $10443.00. If I enter the $10000.00 payment in Euros into Undeposited Funds and then post the deposit (both the payment and deposit I posted as the same day) the deposit amount is $10684.50. Is there somewhere that I can take training on this?

[@omaraissa318]

Actually, it is not against you but in your favor, it is negative Expense -28. bill initially 916 end up paying 900 and invoice 2343 end up receiving 2355

[@HectorGarciaCPA]

omar aissa thanks for the correction

[@florak1087]

great video Hector. I was just looking at a paid invoice with a different currency and was wondering if I have to do an adjustment for the difference.

[@hishum722]

Hi is it possible to use multi currency for same customer or vendor ( property management )

[@robertmcclune8263]

Are you using the Plus version by any chance? I'm trial-ing the Essentials version, and although it has multi currency support, it doesn't seem to support historical rates. At very least, unlike in your video, I see no drop-down arrow on the right of the name of each currency -- i.e. the clicking of which gives you a menu with "View historical rates" as one option. Overall, Intuit support are very confused about this. I was told by three separate support people, one a "specialist", that the Simple Entry version supports multi currency. I started my trial with that, but although it imported my multi currency desktop file, and seemed cosmetically to support MC (i.e. it had the correct currency symbols), in fact it was all in USD -- i.e. it essentially assumed an exchange rate of one USD for one of any foreign currency. As I say, I am now trial-ing Essentials, but I have some incorrectly handled FX stuff going on at various points, and it's throwing everything out. I *think* it might be because QB is using only a single exchange rate for each currency -- i.e. no history -- but I can't find a rate history mechanism to go check.

[@HectorGarciaCPA]

Robert McClune i use plus

[@HectorGarciaCPA]

+Robert McClune I only use PLUS

[@KittyGaming_89]

Hi there, very easy to understand approach. I have a question though. Suppose we have 2 foreign currencies in addition to local one. How will you analyse transaction / match invoices from banking tab? How transfer from one foreign currency account be matched to transfer in other foreign currency account. Then I saw a case where purchase invoice was in Swedish krona and payment was made in euro?

[@HectorGarciaCPA]

Great questions.... hard to answer in this forum.

[@marianamaximov2988]

Hi Hector, can you give me a quick tip what is the first step of reconciling multi currency bank accounts. I did set up everything but not sure how to start to reconcile. The company is Cash Base qb deck top, I am using QB pro 2021. The company is exchanging USD to EUR, GBP and the profit is the percentage made after the conversation. Please let me know, I can’t get any answers from nobody, it is my first time using multi currency, I have hard time stat going.🙏 Thank you very much.

[@HectorGarciaCPA]

Multi currency is not my strength

[@marianamaximov2988]

@@HectorGarciaCPA Thank you very much. Can you recommend someone to teach me for a fee, I am disparate to learn and do it?

[@meghakamra3855]

We have a Cash account in a currency different from our home currency. We are cleaning that cash account. We transferred the leftover functional currency balance to an expense account. At the functional currency level, the account is cleaned, but there is a variance of less than 2 dollars on the Home Currency level. I believe that is due to exchange rate variance. I tried editing the exchange rate, but that too is not working. I am not sure how to clean that from balance sheet. Please advise

[@HectorGarciaCPA]

Any small amounts left over from currency exchange rate can be adjusted against bank fee or foreign exchange losses.. expenses, you have it right

[@MrToddroy]

Hector, I have Italian vendors that I pay in Euros, however I go through an exchange service. Before switching to QBO from SAP Business 1 I had a clearing account that was in Euros. I would be invoiced from the exchange service for the Euros and pay for them out of my US bank account. I would then pay the European vendor from the the clearing account. Can't figure out how to do that in QBO. Also, there is a small fee added on to the current exchange rate for the transaction. How can I add that exchange fee onto the current exchange rate that Intuit pulls from the exchange markets?

[@LuciaMadueno-x7g]

Hi Hector, any idea how to switch back to USD on QB Online after we accidentally switched it to Euro??

[@HectorGarciaCPA]

Cant change it

[@kcervino]

Thank you for this video. Can you please explain what happens when you receive the GBP invoice into your GBP Barclays account? Obviously, at that point, there will be no exchange gain / loss right? Also, on the reports, how are the multicurrency balance sheet items revalued at month-end? Is there a process that you have to run and are those differences posted to unrealised gain/loss in the P&L or on the balance sheet? Thank you.

[@helpdesk52advisory6]

there should be a gain/loss if your reporting currency is USD

[@KittyGaming_89]

Hi there, can u plz guide in following case, a company has home currency £ as QB is UK version for UK company. This company has bank accounts in $, CHF and Euro as well. If there is transfer from $ to euro, QB does not give you matching option. What do to in such situation?

[@amytyler8310]

I’ve been finding it difficult to locate information on setting up receivables using multi currency. We are transferring accounting software. Do you have any information or videos that cover that topic?

[@marlenepisani9887]

Hi Hector,, I am working with a new client whose QBO file is in total disarray, they have many US clients ( we are in Canada) but the previous bookkeeper never turned on multi currency , I think by using multi currency it may help solve some issues but don't want to add more headaches. So I want to investigate before proceeding,, question 1 you said that on the P&L it went against you, but the exchange gain and loss is posted to an expense account and it is a negative expense, so it actually was to your benefit ? No ?, and second question, my client has all her rates posted in brochures in Canadian prices so whoever does up an invoice to an American customer will always have to calculate the exchange rate first then enter that number on the invoice,, correct? if so this doesn't make sense to me,, why wouldn't QBO allow you to enter the price in home currency and then the system convert it to the posted rate in what ever currency you are working with?

[@financemanagerdkk9688]

Hello Hector Gracia Am moses from uganda i have set my home currency in the quickbook as USD and i find challenges as much of my transactions are in Shillings not in USD is there any way for me to change the from USD to Shillings as my home currency if yes please guide me on the precedure

[@HectorGarciaCPA]

I don’t work with multi currency

[@lindaborst1062]

Great video Hector. One question - how is the Unrealized Gain or Loss calculated and shown? For example, if I have a payable in a foreign currency that I entered in June and it still hasn't been paid, I want to see that balance in US $ showing a different amount at each month end. My balance doesn't look like it's changing. It looks like it's been the same balance the last six months (running a Balance Sheet by month). What am I missing here? Thanks in advance for any help you can offer.

[@HectorGarciaCPA]

Linda Borst is posted in the P&L month by month

[@lindaborst1062]

Thanks Hector. I guess what is confusing me is that NOTHING is showing up in the financials as Unrealized G/L and if I run a month to month Balance Sheet, the A/P - Swiss Francs is showing the same balance every month. It's like QB is not updating the currency rate. It seems like the "revalued amount" always equals the original converted amount, so the Unrealized G/L is always showing as zero. Am I supposed to hit "Revalue" somewhere?

[@lindaborst1062]

Ok - I just found where you can go to Lists - Currencies and then Revalue and then I'd be able to pick 12/31/17 and it will create the Unrealized G/L for me, correct? Sorry - a lot of my clients are on Xero too and this is all done automatically for you in Xero. Didn't realize I had to manually do this. Let me know if there is anything else I need to be aware of with this Revalue function. Thanks.

[@HectorGarciaCPA]

Linda Borst yes it should do it

[@craigmcalpine4929]

Thank you for this overview. I would be really interested in knowing how QuickBooks treated the balance sheet side of transactions. How is the value at the balance sheet date set up. Typically we use (for example) and account such as "F/X on USD Bank" to adjust the difference between the USD bank balance and the actual value at balance sheet date. How does QB Online handle this?

[@HectorGarciaCPA]

Craig McAlpine adjusts to converted value at home currency

[@craigmcalpine4929]

Thanks. Best, Craig

[@jemmalynaloc5285]

Hi hector, I'd like to ask how to account using quickbooks the discrepancy on the transfer of funds between bank account with different currency. Let say US bank account transfer $1000 into Canadian bank account it was converted as CAD$750 on quickbooks but bank statement shows that it is actually CAD$800 was credit on your bank statement. How do we account for the CAD$50 or show the adjustment on quickbooks? thanks, ill appreciate your response.

[@HectorGarciaCPA]

Jemmalyn Aloc i can send you to my Canadian partner that you could hire to help you with that..

[@jemmalynaloc5285]

i can't afford to hire a personnel Thanks anyway.. I just thought you can help me with my problem...

[@kathleenlo7917]

Hi Garcia. Thank you very much on your multicurrency explanation. You explain it very well! I have a CAD bank account in Chart of Account. How do I reconcile this CAD bank account end of the month? Do I keep the currency 1:1 to keep the CAD balance ?

[@HectorGarciaCPA]

yes, registers are all reconciled with their own currency!

[@neelamjai7554]

Hi, Can you please guide how to open a new company with multi currency balance as opening bal for customer, vendors and bank . I am bringing the ending balanace from old version qb to new version without data.

[@HectorGarciaCPA]

You need to create each customer and vendor per currency and create them with opening balances

[@neelamjai7554]

@@HectorGarciaCPA I have 2000 customers and vendors with multi currency :( Thanks

[@shabeermib]

@@HectorGarciaCPA can you please guide me how to create the opening balance

[@gmnh1981]

Hi, and thanks for the valuable Video, could you please talk about reevaluation of vendor, customer and bank account at the end of the year.. Thanks

[@RajeshGurjarGanesh]

Hello Hector, I really liked all your videos, I have and issue transferring funds from between Canada bank accounts, which has currency in CAD to another bank account in Canada which has currency in USD, When I tried to find the match, it is not giving me any option. Can you please answer, how to transfer funds between multi-currency accounts? Thanks

[@lourdesalvarez5228]

I have the same question for Hector.I can see that he didn't answer your question. How did you resolve it?

[@amytyler8310]

Your videos are fantastic by the way! Thank you!

[@forevernature]

Hello Hector great video! I would appreciate further help. If I sign up via QBOA a client that is based in the AE, can the default currency for that company be in the AE even if it becomes a new client of a US based bookkeeper?

[@HectorGarciaCPA]

each company file has its own currency

[@sinajak6010]

Hi Hector, Many Thanks for your videos.....May I know how can i change home currency in QB Entps. Solutions : Accountant 18.0 ? By mistakenly I choose EURO.. I cant change it now.. Can you please advice.....

[@HectorGarciaCPA]

Can’t change it.

[@ericcassell6216]

Hi Hector, can you have a foreign currency customer or vendor and don't have a foreign bank account setup in QBO?

[@HectorGarciaCPA]

yes you can!

[@AaronCCorbin]

Thanks very useful tutorial! What do I do if I am in Canada and my home currency is Canadian, but I have a US bank account. I linked my bank account into QuickBooks already but I want to turn on the multicurrency. Will QuickBooks automatically understand that this is a US account? Because right now the transactions from the US account are showing at face value (in US dollarss) and are not converting to CAnadian.

[@HectorGarciaCPA]

i never had multicurrency and bankfeeds at the same time, sorry

[@sondramitchell869]

Hi Mr Garcia, Just to be clear, if i am entering a purchase in Canada (expense receipt) into quick books online, i enter the expense in Canadian dollars?

[@HectorGarciaCPA]

yes

[@tmcfinance8576]

Hi Hector are these steps the same for Canadian Online QB version?

[@HectorGarciaCPA]

H.R. & Finance Mgr. possibly.. but cannot tell you for sure.

[@rowenabayas5442]

Our main currency is CAD but we have USD bank account. When I pulled the GL for USD it all converted in Canadian. How could I pull the GL in USD? Thanks

[@HectorGarciaCPA]

i would contact support for that

[@TLuke99]

Hector, great job. Very well done!

[@HectorGarciaCPA]

+Terry Luke :)

[@GiteshBajaj]

Useful

[@JedaqiaAngel]

Anybody here know how to make the invoice only show denominated currency? My sale currency is USD & original currency is MYR? In invoice it shows both amount but I want to show only USD; even after print out. Any ideas to make the invoice only USD amount?

[@ibrahimanwar6647]

Hector how can we pay our employees in another currency. I see no option here with me when i add a new employee. i only see it for customers.

[@HectorGarciaCPA]

Ibrahim Anwar employees only in home currency

[@ibrahimanwar6647]

Thanks a lot. and i cannot change home currency ?

[@HectorGarciaCPA]

Ibrahim Anwar no

[@ibrahimanwar6647]

so there is no option for that. no matter which version of quickbooks we upgrade it to?

[@hexgarcia]

nooe

[@dariusrichardson6131]

ok yes. im international, I just want to change my currency from the local to u.s.d, how do I get that done?

[@HectorGarciaCPA]

Darius Richardson the local cannot be changed, once is Setup

[@atefehgoodarzi6275]

Hello Please help me, I did many research but I can not find my answer. We invest in Bitcoin for our company, and i creat an account as a other assets for it and put the amount of BTC that we bought in the cell of balance, and put the exchange rate in cell of Bitcoin to CAD. My question is that, BTC rate always is changing, how can I update the value of BTC to CAD without changing in the amount of my BTC. Please help me

[@accmasconsulting2412]

Hi Hector, How can I create a foreign currency account in Quickbooks?

[@HectorGarciaCPA]

+Accounting Masters that is covered in the video...

[@accmasconsulting2412]

thank sir. I get it now. I'm grateful.

[@HugoBobea]

García: Muchas gracias por este video. Eres bueno!

[@lindasherman9118]

Very helpful. Thankyou.

[@karenwatts8175]

Has anyone had any luck using a Bill.com like provider to pay bills when using the FX feature in QBO. Bill.com only supports US $'s so there are sync errors that have to be resolved each time.. somewhat annoyingLove to hear what others have done to help clients pay bills automatically!

[@angelaepifanova4338]

Hi I have a question how would you pay an international vendor when you use a third party exchange company. would I have to make the currency company as a bank or a vendor ?

[@MrToddroy]

Angela, did you receive an answer on this. I do the same thing. When I used SAP Business 1 I had an account that housed Euros and I would do an AP invoice from the exchange for Euro into my Euro clearing account. I would then pay for it in the dollars at the current exchange rate. Then pay my European vendor out of the clearing account in Euros. Can't figure out how to do that in QBO.

[@frankiebovino8690]

Cant get this to work on the online trial... anyone else have this issue? Multi currency is not available. Just want to make sure they didnt remove this feature

[@HectorGarciaCPA]

its in the trial.. you need to turn it on

[@frankiebovino8690]

+Hector Garcia (CPA) the option to turn it on isnt where it should be thats the issue im running into. cant turn it on.

[@Anusari2757]

Very nice video

[@maryschoenberger8111]

Good, basic overview

[@dariusrichardson6131]

ok yes. im international, I just want to change my currency from the local to u.s.d, how do I get that done?

[@dariusrichardson6131]

ok yes. im international, I just want to change my currency from the local to u.s.d, how do I get that done?