Watch a 5-minute tutorial about multiple currencies
With QuickBooks multicurrency, you can track transactions in more than one currency. Multicurrency affects many accounts and balances in your company file and the preference can't be turned off once it's been turned on.
Important: We recommend that you back up your company file before turning on this preference.
You can assign a currency to customers, vendors, price levels, bank accounts, credit card accounts, and accounts receivable/accounts payable accounts. Other account types, like income and expense accounts, always use your home currency.
Only one currency can be assigned to each name or account; you'll add a new entry for each currency you'll use in transactions.
The multicurrency menu items are in the Company menu under Manage Currency and the feature can be turned on through preferences.
Turn on the multicurrency feature
After you turn on the feature, you'll be able to assign a currency to customers, vendors, bank accounts, credit card accounts, and accounts receivable/accounts payable accounts.
Go to the Edit menu and click Preferences.
In the left Preferences list, click Multiple Currencies.
Click the Company Preferences tab to display the preference options.
Add foreign customers and vendors
You can assign one currency for each customer or vendor so you'll create new customers or vendors to use in your foreign transactions.
All existing customers and vendors will be assigned your home currency when you turn on the feature. The currency can't be changed for names that already have transactions recorded against them.
Continue to use these home currency customers or vendors as you close open balances. You'll use your foreign customers or vendors for any new sales or purchases you create but you'll continue to use the home currency names until you complete any current open transactions.
Use the Customer and Vendor Centers to create foreign customers or vendors. If a name is already listed using your home currency, assign a slightly different name to the foreign customer or vendor that you create.
Add foreign accounts
You can assign one currency for each account so you'll create new accounts to use for your foreign transactions.
All existing accounts will be assigned your home currency when you turn on the feature. The currency can't be changed for accounts that already have transactions recorded against them.
Continue to use the home currency accounts to complete any open balances. Use the foreign accounts you create for transactions after all open balances are closed.
Currencies can be assigned to the following account types: bank, credit card, accounts receivable and accounts payable.
Note: The currency of accounts receivable and accounts payable accounts must match the currency of the customer or vendor used in the transaction. QuickBooks will automatically create a separate account for each currency as you create transactions in those currencies.
Use the Chart of Accounts to create foreign bank and credit card accounts as needed.
Update your exchange rates
At any time, you can download the latest exchange rates from within QuickBooks. If you prefer to use your own exchange rates, you can manually enter those as well.
Let QuickBooks download the latest rates for you: Go to the Lists menu and then click Currency List. Click the Activities button at the bottom of the window and then click Download Latest Exchange Rates.
Note: QuickBooks downloads rates only for active default currencies and you can download rates only if your home currency is the US dollar.
Manually enter exchange rates: Go to the Lists menu and then click Currency List. Double-click a currency to edit its exchange rate.
Create foreign transactions
After you've set up your foreign customers, vendors and accounts, you're ready to create foreign transactions.
Note: Only use the foreign names or accounts you added for new foreign transactions.
For example, if you have an open invoice for an existing customer for whom QuickBooks assigned your home currency, don't use the foreign version of the customer you created to receive payment against that invoice. Continue to use the home currency version of the customer until the transaction is complete.
A few things to know about foreign transactions in QuickBooks:
You don't assign a currency to sales and purchase transactions because they are assigned the currency of the customer or vendor you enter on the form.
Exchange rates are a part of each transaction and determine the home currency value of the transaction.
Amounts on sales and purchase transactions are in the customer's or vendor's currency and the home currency equivalent is listed for the transaction total.