QuikcBooks Multi Currency Invoice, Payments And Deposits With Exchange Gain Or Loss

[@worldwidequickbooks]

Hello to all of my QuickBooks fans using the multi-currency feature in QuickBooks Desktop!! This QuickBooks training tutorial will show you how to record invoices, customer payments and deposits in a foreign, non-home currency. When you bill a foreign customer, the invoice and the payment you receive can be in the other currency; the currency of the customer. In this video, we assume the funds get converted before being deposited in to your account. Any time there is payment after the invoice, or deposit after payment, there could be an exchange gain or loss based on the exchange rate on the date of each transaction. I hope you will click “like” on any video that helped you and I hope you will subscribe! -Mark

[@johnnyesteban89]

@Lennon Louis instablaster ;)

[@johnnyesteban89]

@Lennon Louis happy to help :)

[@worldwidequickbooks]

@@lennonlouis313 ok great, whatever works for you. -Mark

[@erickm208]

Hello, how come the $6.30 which is a net gain is recorded as negative in the profit and loss statement and vice-versa?

[@worldwidequickbooks]

That's the way it works if it shows it that way in the video

[@shirleychen1913]

seems like you missed certain line showed the report. I think exchange gain or loss is a expense account, a net gain is recorded as negative in the "other expense", in other word, it means increasing the profit.

[@worldwidequickbooks]

@@shirleychen1913 Sure, it's whatever can help you from the video. I hope you click "like" to support the free channel and please subscribe. -Mark

[@mendyrenee1]

Hello, your example shows the invoice and the payment received recorded in the same month. If the invoice is booked in month 1 and the payment is received in month 2, which period will the gain or loss be recorded in? The month the invoice was posted or the month the payment was received?

[@worldwidequickbooks]

It would be recorded on the date the payment is recieved. You do not have a gain or loss on invoice date. You have a gian or loss when you get paid a different amount from the invoice becausse of currency fluctiations. -Mark

[@mendyrenee1]

@@worldwidequickbooks Thank you. What if the customer sends a cash deposit first and then the company invoices for services later? In which period would the currency gain/loss be recorded?

[@worldwidequickbooks]

@@mendyrenee1 same Idea. The unit of currency on the day you receive the deposit is one amount. TYhe day you make the invoice is a different unit price per currency unit. So, teh gain or loss will happen when you make the invocie and apply the past payment. In oher words, it's the same even if the payment comes before the invocie. -Mark

[@ngoctrancong518]

Thanks for your video. It is well explained. I have another situation and you may help. We invoice in CAD but receive payment in USD and deposit to USD bank. How should I make the invoice and record the payment in this case? Thanks in advance.

[@worldwidequickbooks]

Thank you for the compliment I'm happy to help You cannot do that that in quickbooks The videos in the series for this playlist will clearly show you that the only way to manage manage multi currency is to create a separate customer with that specific currency and a separate bankAccount with that currency or you will not be able to make transactions with that currency The beginning of the playlist shows that that you can simply in simply record the US dollar equivalent minus whatever fees and plus or minus whatever lossOr gain you might have on the exchange rate at the moment that you build and at the moment that you received Look in the description field for the link to the entire playlist then it will become more clear I promise it's a fast playlist and each video is as small as this one but when you do it in order you will get the picture Please tell me and confirm that you found the link and am here if you have any other question Mark

[@mariagorettilovelyn6885]

How do I type in the exchange rates of the different currencies we use

[@worldwidequickbooks]

See the full playlist. Check the link for all the multi-currency topics in quickbooks desktop and in quicbooks online. You can aplso click in the top right on the "card links" to get the full playlist of both. It won't take long for you to see the whole idea and how it really workks. -Mark

[@rameez328]

how do we show bank accounts held in foreign currency?

[@worldwidequickbooks]

Click in the top right corner of this video. You will see the link to the full multi currency playlist Watch each video in proper order. And it won't take you too long because there are only a few minutes each I promise the topic you're looking forward in the playlist. But you want to watch the playlist in proper order , so you can understand how it works Mark

[@dennissunga5332]

Thank you for this video. However , while you are doing the calculations correctly, you are indicating the exchange rate backwards. You said USD1.00 = Rubles 0.01337. Don't you mean Rubles 1.0 = USD 0.01337 That is why 10,000 Rubles = USD 133.70. That was just my comment as I got confused the first time. But appreciate this video. Thank you

[@worldwidequickbooks]

Thank you Dennis, I'm glad to help Yes, you are correct, it is the other way around and I was happy to "learn you something" (get it?) P.S. I hope you "like" and subscribe" -Mark