It is now possible to use QuickBooks Online (QBO) with different currencies from different countries.
Perhaps you have a customer or vendor that deals in Euros. You are now able to create and process these transactions in the foreign currency, while still maintaining your accounting records in dollars.
To enable the multicurrency feature in QBO, start at the gear icon. Then select Company Settings.
In the Advanced section is a selection for multicurrency.
When first accessing this setting, only the top checkbox, Multicurrency, will be visible. Once that selection is made, the rest of the above window opens.
There are several cautions QBO wants you to know about multicurrency, they are listed in this selection window.
Once activated, it is not possible to turn off the multicurrency feature. That may change in the future, but such enhancements should not be counted on as absolutes. Know that this is a capability in QBO that you want to use before you select it.
When using multicurrency, you need a ‘Home Currency’. This is the currency you use domestically, so for the U.S. that’s dollars. This is the currency in which your financial records will be kept. Whenever you run a report like a balance sheet or a profit and loss, it will show values in your home currency.
QBO will select the currency you have used to setup and maintain your QBO file so far, as your home currency.
You are required to confirm your choice checking the “I understand I can’t undo Multicurrency” line in the setting window.
Even without making any other entries, you will see a number of appearance changes in your QBO file.
Your customer list now has another column. This column denotes what currency is used when you do business with this customer. If we had setup a customer as a Euro customer, you would see that designation in this column rather than USD.
The vendor list will have a currency column as well.
The Lists page now has a new list, Multicurrency. This selection will show the currencies you use, their exchange rate as compared to your home currency, and when the list was last updated.
QBO will keep the exchange rates current on its own. No need to remember to activate this update.
Transactions will have a currency designation as shown below.
You will also see a currency column in your chart of accounts list.
More on the multicurrency feature in future posts.