How to Deal with Multiple Currencies in QuickBooks 2013 - dummies

How to Deal with Multiple Currencies in QuickBooks 2013

By Stephen L. Nelson

QuickBooks 2013 supports multiple currencies. To turn on QuickBooks’ multiple currencies feature, choose the Edit→Preferences command, select the Multiple Currencies option from the list box, and click the Company Preferences tab. Then select the Yes I Use More Than One Currency button, and choose your home currency from the drop-down list box.

After you tell QuickBooks that you’ll be working with multiple currencies, you need to set up a bank account for each extra currency in which you want to work (currencies in addition to your home currency). After that, you can indicate which currency a vendor or customer uses when you set up a new vendor or customer.

You can also select a transaction currency for vendors or customers with whom you haven’t yet transacted any business. You can’t change the currency for a vendor or customer with whom you’ve already transacted business in your home currency, however.

After you’ve performed this setup work, you can work with foreign currency units (euros rather than dollars, or vice versa) as you pay the foreign currency to vendors, collect the foreign currency from customers, and move money in and out of your foreign currency bank account.

Furthermore, using the currency exchange information available on the Currency List (available when you choose Lists→Currency list), QuickBooks converts foreign currency amounts to home currency amounts so you can prepare reports that use your home currency. QuickBooks of course updates its records concerning foreign exchange rates if you display the Currency List window, click the Activities button, and choose Download Latest Exchange Rates.

One final multiple currency factoid: If you turn on the Multiple Currency feature within QuickBooks, QuickBooks sprinkles little “currency” reminders throughout its windows and dialog boxes. For example, amount boxes show a little abbreviation for the currency that goes into a particular box — thereby reminding you that into this particular text box, you’re supposed to enter, for example, British pounds.