Does your business have a multinational presence? If so, you’ll probably receive payments in foreign currencies. Some customers may pay in USD, whereas others may pay in a different currency. When using Quickbooks, you can track and record all types of currencies using a feature known as Multicurrency.
Overview of Multicurrency
Multicurrency is a feature in the Quickbooks accounting software — both desktop and online versions — that allows you to track multiple currencies. When enabled, you can assign the appropriate currency to various accounts, including customers, vendors, banks, credit cards, accounts receivables, accounts payable and more. When you record a transaction from one of these accounts, Quickbooks will automatically use your specified currency.
How to Turn on Multicurrency
You can turn on Multicurrency by logging in to Quickbooks and clicking “Preferences” under the “Edit” menu on the home screen. From here, you should see an option for “Multiple Currencies.” Clicking this option will bring up a new set of options. You can then click the “Company Preferences,” followed by “Yes, I use more than one currency.” Finally, select your home currency under the drop-down menu. Once complete, save your changes to finish the setup. Multicurrency should now be enabled in your Quickbooks account.
Using Multicurrency: What You Should Know
With Multicurrency turned on, you can now assign the appropriate currency to your business’s customers, vendors or other accounts. Keep in mind, however, that you’ll have to create a new profile for each account. All your existing accounts will automatically use your specified home currency.
To assign a new currency to a customer, click the “Customers” menu on the home screen and select “Customer Center.” Next, choose “New Customer:job” in the “Customer Center.” You can then select the “New Customer” option. To assign a currency to the customer, simply choose the currency from the drop-down menu of available options. When finished, click “OK” to complete the process.
You’ll probably encounter some new fields after activating Multicurrency. Quickbooks, for example, will create a “Currency” field that shows up in your Chart of Accounts. The “Currency” field contains a list of your added currencies. You’ll also see a “Bank and Credit card registers” account, which shows up in payment headings. This field denotes the currency used for the respective payment.
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