QuickBooks Online Multi Currency Problems With Revalue Currency Units

[@worldwidequickbooks]

Hello to all of my QuickBooks fans using the multi-currency feature in QuickBooks Online!! This QuickBooks Online training tutorial will show you the imperfection regarding currency adjustments. Sometimes the unit value of the currency is out of sync with the account balance where the foreign currency is. This video will show you how to work around that flaw in the multi-currency feature in QuickBooks Online. I hope you will click “like” on any video that helped you and I hope you will subscribe! -Mark

[@qbopro7610]

One of bestest explanation. Cheers!

[@worldwidequickbooks]

Glad it helped I hope you will click like after watching each one and subscribe Mark

[@fantazia57]

it seems QBO recognize the gain/loss properly upon settlement, as long as you use "bill" and "pay bill" or "invoice" and "receive payment" - as the "bill" and "invoice" is directly tied to the A/R & A/P QBO Default account. But the problem continues when you transfer the foreign currency from the foreign currency bank to the USD bank account, and it doesn't capture the gain/loss at the date of transfer. it all aggregates to the revaluation at the period-end which sometimes is confusing and hard when you audit, as it lump sum everything.

[@worldwidequickbooks]

I think so yes at the jury is still out on exactly and precisely how to handle multi currency transactions in every case. Generally accepted accounting principles changes over time when it comes to multicurrency because this so many strange aspects about it. The safest thing you could do was click in the top right corner of this video to get the link to the full playlist of this topic and if you. Watch each video would proper order things will be more clear and if you take the conventional advice that I give you will at least be able to justify every. Multi currency adjustment that you need to make. I hope you will remember to click like after watching each one and please subscribe and please follow up and tell me if you think it works for you Mark

[@argemporio6815]

Hello. Nice video. By the way, where did you get the .008 for payment? Is it the exchange rate at the time of payment?

[@worldwidequickbooks]

Thank you, it's just the example number that I used it could be anything in real life Mark

[@ChristyPerkins-e6h]

Is there a way to add class to customer payments that generate an exchange gain/loss?

[@worldwidequickbooks]

If you activate class tracking in the account settings window, you should be able to do that because you will have an additional field to choose the class Give it a try and let me know Mark

[@ChristyPerkins-e6h]

Hi! I use class for all of my transactions, but there is not a field in the payment screen for class. I have gone into the transaction journal as well, but again, it will not let me add the class to my gains/loss account journal line. I would like it to be G&A, so that when I run the income statement by class it is not in the unspecified column.

[@KT-dj4iy]

Even though this method seems most accurate, isn't it still possible to do the revaluation *after* making the payment? Sure, in the time between recording the payment and recording the reval, the trial balance will be "wrong"; but wouldn't the subsequent reval then correct that? Prior to moving to QBO from Desktop, we would only do HCAs once a month, not every single time we wanted to make a foreign currency payment. That seemed to be OK, provided we remembered that our reports were only truly accurate (i.e. the foreign accounts were in sync as you put it) at the end of the month, after the HCAs had all been run.

[@worldwidequickbooks]

Thank you but generally accepted accounting principles are somewhat vague when it comes to multi currency transactions and revaluations.. I'm wondering if you did a little research and find out if it would be better To Do one everyday in the morning as soon as you log. In and maybe they would consider your net results on your monthly reports more accurate than if you do a bunch of transactions and just revalue at the end. Of the month.it might be possible that there will be no difference in the long run if you do a daily or monthly. Period that's a whole nother subject in accounting but that is an accounting subject not a quick book subject.in regard to quick books the reason you must. Do at this way,is because quick books does not keep accurate subsidiary records of how to value of each unit of currency in the account. That's the problem Doing your way will not fix that problem but doing it. My way will make sure that the subsidiary records will not be messed up and the value per unit will be as accurate as possible. We should probably both talk to a couple of certified public accountants who have specific experience with multicurrency adjustments I'll pay for a consultation if I know. I'm getting the accurate information and then I'll add that to the multi currency playlist Speaking of which,you should probably click in the top right corner of this video to get the link to the full multi currency playlist and watch It in. Proper order and then you will understand everything I have been teaching in its proper context.. That may answer the question for you Mark

[@talco]

Hi @@worldwidequickbooks, wondering if you ever got an answer? Quickbooks support can't even figure out what the problem is. :)

[@msbarcenas1428]

Hello! I really enjoy your videos. I am learning a lot. I just have a question. How often should I do home currency revaluation? Is it every time that I have to pay in foreign currency like the Guyana dollars? And should I also do the revaluation at the end of every reporting period (monthly)?

[@worldwidequickbooks]

Thank you so much. The playlist videos show teh answer to those Questions. If you click the top right of any video you will get the full, multi- currency playlist and the desktop equivalent. -Mark

[@PEIYHENGChong]

Hi Author, first of all, thanks for the effort in explaining this. in regards with this multicurrency, i did use the undeposited fund/clearing account to cater and record the different currencies, however, the residue amount seem left in the "foreign amount/balance" of the undeposited fund (meaning home currency zero, but there is foreign balance), no issue to the home currency but the foreign balance. and another general journal needed (ex. rate to be 0.0000001) to clear the foreign balance off to P&L, to make both home currency balance and foreign balance to zero. any other better/ proper way to cater this please. thank you very much in advance.

[@worldwidequickbooks]

Thank you for asking I think the residual balance is due to what is explained in this playlist. The Continuous change of currency value The remaining balance is either a gain or a loss so you would make a journal entry to zero out the account and the difference would go into the gain or loss from currency revaluation that is discussed in this playlist If you click in the top right corner of this video you'll get the link to the full multi-currency playlist and if you watch it in proper order then everything will be clear in the proper context and you will know what to do After you finish you will see that it will not take long because each video is only a few minutes and if you still have questions I will be more able to answer them because you will have seen the videos Mark

[@PEIYHENGChong]

@@worldwidequickbooks thanks for the prompt reply, Mark. Appreciate. as we are using undeposited fund to clear the multicurrency transaction. hence the residue foreign amount (different currencies) will be left in undeposited fund foreign balance, but in fact the home currency amount is zero, we already clear off the realised gain/loss of that particular transaction. I humbly think the foreign amount residue is due to different foreign amount "flushed" to undeposited fund, and the foreign amount cannot be "knocking off each other" as it is just a clearing account for all the foreign currency other than home currency. for example, home USD, invoice PHP, receive SGD, meaning the undeposited fund account will have the PHO and SGD foreign amount that cannot be knocked with each other (no issue to home USD). is that the case? and i can only thought of clearing the foreign balance with ex. rate 0.000001(no USD equivalent amount, will not affecting my book), and flush to P&L, not sure if that is the correct way. Thank you very much and appreciate Mark

[@abassdixonturay9256]

Is it possible to transfer to different currencies not the home currency?

[@worldwidequickbooks]

Yes,click in the top right corner of this video to get the full multi currently playlist. Each video is only a few minutes but you need to watch it in proper order in order to understand things more clearly.. Then you will have everything you need and i'm here if you have any questions Mark

[@taramobayen8389]

When I connect my RBC Bank US to quickbooks, it automatically chooses the currency to be CAD. But this bank account is in USD currency. How can I change currency to USD? It doesn't allow me (The currency section is locked and greyed out) so I cannot choose USD. Please help

[@worldwidequickbooks]

Thank you but I can only help you with quick books. Not the app or the program that you're bank uses to connect with quick books. What's your asking about as outside quick books The only advice I can give you is just to make sure that multi currency is activated before taking any action. Still doesn't work you must contact your financial institution because it's there software. It's not quick books. Mark

[@dhanukakarunarathna7812]

If our customer is a USD customer and he pays some amount in another currency type. How do we enter this transaction in QB.?

[@worldwidequickbooks]

Thank you but you cannot. You must make a separate set of customer records for that customer for each currency type that he pays in. You could convert to dollars before depositing. make sure you watch the playlist in proper order from beginning to end to really understand the context of what to do. Click in the top-right corner of the video as it runs or click in the description filed for the link to the whole playlist that this video is a part of. Then, you will understand everything in proper context. -Mark

[@dhanukakarunarathna7812]

Thanks your advise sir... We are currently using QB software in our office for business purposes and if we got a problem there, we are reffuring your webinars at everytime. Thank you...😊

[@chillysauce4238]

Are the principals the same for desktop?

[@worldwidequickbooks]

Yes they are exactly the same as in desktop QuickBooks If you look in the description text you will see a link to the playlist for multi-currency QuickBooks desktop as well as the link to the full playlist for multi-currency QuickBooks Online Those links are also in the top right of the video when they pop up in the top right you can click on them and see every multi-currency topic and you will see it is the exact same idea functionally speaking, and QuickBooks desktop Mark

[@shaleen0mishra]

But the 10000 was in the form of guyana dollar and we paid exactly that in the end. Why should this be a gain?

[@worldwidequickbooks]

Thank you but you need to see the full playlist in proper order. Then everything will be explained in its context because this video is only one as part of the full course. If you click in the top right corner of the video you will get the link to the full multi currency playlist that you should watch and proper order and then I promise everything will be clear. Mark